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Cross-network mobile money transfers were done about 2.2 million times between May and December 2018, according to figures released by the Ghana Interbank Payment and Settlement Systems (GhIPSS).

This shows a continuous increase in patronage of the service.Before the introduction of mobile money interoperability in May last year, such cross-network transfers were done through the ‘token’ system.

The monthly average for transactions under the ‘token’ system was about 93,000. However, the average transaction per month with the introduction of mobile money interoperability for last year is pegged at about 280,000 transactions, which shows a difference of over 200 percent.

In its first month of introduction, less than 100,000 transactions took place; but this has risen steadily to over 400,000 transactions in the month of December 2018 alone.With the mobile money interoperability, customers, are now able to transfer funds from one mobile money wallet to another wallet across networks. This eliminates the previous complexities and inconveniences associated with transfers across the various networks in the country.

Mobile money interoperability has also been seen as an important vehicle for deepening financial inclusion, because it enables people who do not have bank accounts to be roped into the banking system – as any money kept on a mobile money wallet is actually held at a bank.

In the wake of mobile money interoperability, a number of institutions including Electricity Company of Ghana, Ghana Water Company, pay television channels, some fuel stations and supermarkets now accept mobile money as one of their payment options. The ‘Pay Bill’ option on mobile phones leads customers to several service providers that can be paid through mobile money.

Chief Executive of GhIPSS, Archie Hesse, said with the seamless transfer of funds across different mobile networks more organisations should accept mobile money as a payment option. He said because of the convenience, organisations stand to benefit if they accept mobile money from their customers. He also challenged accountants to devise ways of accepting mobile money as an official channel for paying and receiving funds, in line with the changing times.

Mr. Hesse anticipates that cross-network mobile money transactions will continue to rise in the coming months. He commended Fintechs which have developed solutions that enable supermarkets and organisations in general to receive mobile money through a shorter process.

“Paying at a shop or at a company using mobile money does not require that you go through the long process following the various prompts. Fintechs have developed shorter ways of paying, and companies should approach these Fintechs for support,” Mr. Hesse stated.

The GhIPSS CEO indicated that the future is mobile phones, and many other financial services and products will be fashioned on the mobile platform to bring greater convenience and efficiency to customers as well as the organisations themselves. He said GhIPSS will always ensure the security and sanctity of the electronic payment system.

GNA

Accra, Jan 31, GNA -The volume of Instant Pay transactions went up to 143,879 transactions in 2018, representing an increase of 244 percent over 41,795 transactions recorded in 2017, a Ghana Interbank Payment and Settlement Systems (GhIPSS) report has shown.In its first year of operation in 2016, only 184 Instant Pay transactions took place, largely because the service was introduced in the later part of that year

The growth in transactions is an indication that more bank customers are exercising the option of using Instant Pay to transfer funds or make payments from their bank account to another account with a different bank. The Instant Pay makes interbank transfers and payments instant, such that immediately the money is transferred, the recipient can access it.

Speaking during an interaction with journalists in Accra, the Chief Executive Officer of GhIPSS, Mr Archie Hesse said globally, payments are gravitating towards instant payment. He explained that because the service could be accessed electronically, it created convenience to customers as they can perform instant payment transactions from their bank account without moving an inch.

While volume of transaction grew by 244 percent in 2018, the growth in value of transaction was much higher at 542 percent. The more than proportionate growth in the value compared to the volume, suggests that the payment system is trusted by customers and are therefore using it for higher value transactions, Mr. Hesse explained. He noted that Instant Pay was an important service that ensure quick, convenient but secured movement of funds in the economy. Mr. Hesse urged the public to continue to keep their money within the banking system, because it can now be easily and quickly moved around to address their business needs.

Instant Pay is currently the fastest way to transfer funds or make payment from one bank account to another of a different bank and it was introduced to create convenience to bank customers and to facilitate quick payment.Instant Pay service is offered by the banks and currently most of the major banks provides the service. While some banks offer the Instant Pay service through their internet banking portals, others do it through their mobile banking portal. Some of the banks however offer the Instant Pay service on both the mobile banking and internet banking portals. GhIPSS Instant Pay is the generic name, but various banks call it by different names. The introduction of the Instant Pay service is greatly enhancing business transaction as businesses are able to make and receive payments instantly through their bank account to support the quick turnaround of their goods.

GNA