Accra, Ghana//-MobileMoney Limited (MML), a wholly owned subsidiary of Scancom PLC, has launched its 2023 Mobile Money (MoMo) season with a theme: ‘Addressing the Barriers to Digital Payments Adoption in Ghana’ at North Kaneshie market in Accra.
Activities
Speaking at the launch, the CEO of MobileMoney Limited, Shaibu Haruna said: “As part of our 2023 MoMo Season celebrations, we will be undertaking a series of activities and campaigns across the country with launch activities in Accra, Kumasi, Takoradi, Nkawkaw and Tamale, all in the Greater, Ashanti, Western, Eastern, and Northern regions”.
There would also be consumer and staff promos, market storms, stakeholder fora, digital campaigns, Catch Them Young Series, MoMo fraud education among others, he added.
Mr Haruna therefore encouraged Ghanaians to take part in these celebrations to enable them to be informed, educated, and updated on Mobile Money (MoMo) and its related issues.
Impact of Mobile Money in Ghana
“Today, MTN MoMo alone has impacted the lives of millions of people in Ghana and beyond and we couldn’t be humbled of how far we have come – from our first subscriber to over 11 million subscribers, offering mobile financial services to the banked and unbanked, and creating job opportunities for millions of Ghanaians”.
In Ghana, mobile money has increased access to financial services for millions of people which has led to strengthening of the payment ecosystem and deepening financial inclusion.
Mobile money has become more than just a mobile financial service. Now, MoMo customers have access to a wide array of services including payments, investments, insurance, remittances, pensions among others, according to Mr Haruna.
He added: “It has redefined how we do business, how payments and transactions are made, and provided many people with livelihoods. Ultimately, it has become a way of life and continues to foster inclusion in Ghana – serving as a major means of payment for the banked and unbanked population in Ghana”.
According to a 2022 GSMA report released earlier this year, West Africa is the world’s largest growing mobile money market, with Cote d’Ivoire, Ghana and Senegal emerging as mobile money leaders in the region.
Also, the 2022 Summary of Economic and Financial Data by the Bank of Ghana (BoG), mobile money transactions in 2022 hit a record GHS 1.07 trillion despite the implementation of the e-levy as compared to about GHS 902.5 billion in 2021.
“As pioneers of mobile money in Ghana and the West Africa sub region, this feat is something we are proud of and will not have been possible without our cherished customers and valued stakeholders”.
Addressing Barriers to Digital Payments Adoption in Ghana
Rising competition in Ghana’s digital payments and fintech sector, coupled with increased mobile money awareness, infrastructure and a good regulatory framework continue to drive innovation within the sector.
Nonetheless, despite the significant gains and progress “we have made in Ghana’s digital payments sector, there are still some challenges with respect to digital payments adoption and integration in the country”, the CEO noted.
Touching on this year’s theme-‘Addressing the Barriers to Digital Payments Adoption in Ghana’ which Mr Haruna described as “a step further towards realizing our Ambition 2025 strategy of leading digital solutions for Africa’s progress and leading the drive for digital and financial inclusion in Ghana and across Africa”.
Interoperability challenges, fake identification cards, platform infrastructure, onboarding customers, MoMo fraud among others have impeded digital payments adoption in Ghana.
He assured that MTN Ghana and MobileMoney Limited are committed to addressing these challenges by working closely with various stakeholders and partners in a bid to build a robust, efficient, and more inclusive digital payments ecosystem in the country.
MoMo Fraud
Although mobile money has contributed immensely to Ghana’s socio-economic growth, it has also been the target of some unscrupulous persons who continue to perpetuate financial crime and MoMo fraud.
“Several customers have fallen victim to the antics of these fraudsters. We continue to beef up efforts across various touchpoints to stay ahead of them.
Through robust and stringent measures, multi-sectorial collaboration as well as intensified public education, we will continue to tackle MoMo fraud and bring perpetrators to book. Although our efforts have contributed to a marginal decline in these fraudulent activities, there is still more work to be done”.
Recent data from BoG revealed that total electronic money related losses from 2022 amounted to GHS26 million representing a 103% increase from 2021.
There is therefore the need to increase fraud awareness and beef up security measures. A multi-sectorial approach is critical to tackling MoMo fraud and other related issues.
To this end, MML recently signed a Memorandum of Understanding (MoU) with the Economic and Organized Crime Office (EOCO), a partnership they believe would go a long way in addressing MoMo fraud and bringing the perpetrators to book.
“We continue to work with partners from the National Cybersecurity Authority, Ghana Police service and the Judiciary to conduct investigations into fraud related issues. As a digital focused business we continue to explore artificial intelligence tools to fight fraud. On our part we continue to adhere to all international security standards to ensure that the wallets of our customers are safe”.
Additionally, a few weeks back MML successfully achieved the Global System for Mobile Communications Association (GSMA) Mobile Money certification. MML was robustly assessed against eight principles made up of detailed criteria set by the GSMA between November 2022 and May 2023.
These principles, Mr Haruna mentioned include Security of Systems, Data Privacy, Safeguarding of Funds, Quality of Operations amongst others.
The GSMA Mobile Money certification is a global initiative which promotes security, transparency, and resilient financial services to millions of mobile money users across the world.
The possibilities of MoMo remain endless, and it is important for us as stakeholders to work collaboratively to find solutions to address the barriers that impede digital payments adoption in Ghana.
Way Forward
“As we strive and work hard to achieve our Ambition 2025 strategy of transitioning to a platform player and a full-fledged digital-first technology company, we will continue to work in collaboration with other partners and industry players to address the barriers in Ghana’s digital payments sector.
We intend to accelerate growth in the digital payments sector and further boost financial inclusion in the country by continuing to invest in digital infrastructure, by employing a multi-sectorial approach to policy formulation, and by building strategic partnerships and collaborations”.
He reaffirmed that MTN Ghana and MML are committed to leading the delivery of a bold, new digital world and brightening the lives of their customers.
In her welcome address, the CEO of Izone, Cynthia Ofosu said: “As we continue to work towards bridging the financial inclusion gap across the length and breadth of the country, we hope that you will continue to join us on this journey”.
