Accra, Ghana//-The latest Economic and Financial Data from Bank of Ghana (BoG) revealed that the total value of Mobile Money (MoMo) transactions in the country has grown to GH¢569 billion in 2020 from GH¢32.8 billion in 2019.
This remarkable performance which showed 536.2% increase was attributed to the Covid-19 pandemic which restrictions have propelled more Ghanaians to send cash to their relatives and friends through mobile phones and tablets.
Also since the outbreak of the pandemic in March 2020, businesses have been using the MoMo platforms namely-MTN Mobile Money, AirtelTigo Money and Vodafone Cash for transactions.
The month of December 2020 alone recorded GH₵67.7 billion as the total value of MoMo transactions compared to GH₵32.8 billion in December 2019.
While the balance on float for all mobile money transactions in the country rose to GH₵7.0 billion in December 2020, from GH₵3.0 billion in 2019.
The data also revealed that the total number of mobile money transactions grew to 301 million in December 2020. That is 301 million transactions in December 2020 compared with 200 million within the same period 2019.
Furthermore, the data indicated that there are 38.5 million registered mobile money accounts in the West African country as at the end of December 2020 as against 32.5 million in December 2019.
Additionally, active mobile money accounts stood at 17.1 million in December 2020, depicting an increase of 2.6 million compared to the 14.5 million recorded in December 2019.
MoMo penetration
It is clear that Mobile Money popularly called (MoMo) is penetrating across the length and breadth of the country. It keeps recording significant growth in terms of number of agents and customers, since its introduction in Ghana in 2009 by MTN Ghana, a subsidiary of Scancom PLC.
Cross-network MoMo transactions up
The latest summary of economic and financial data released by the central bank, again, indicated that the total value of Ghana’s mobile money interoperability (MMI) platform increased to GH₵ 1112.2 million in December 2020, from GH₵ 132.0 million within the same period in December 2019 out of a total transaction of 6.3 million, in December last year.
MMI is a platform that allows customers to transfer money from one network to another seamlessly.
Other payment systems
Touching on the other payment systems, the data noted that the total value of cheques cleared at various banks across the country increased to GH₵ 17.0 billion in December 2020, from GH₵ 16.9 billion in December 2019.
E-Zwich also saw an increase in total value of GH₵882.8 million in terms of transaction in December 2020, compared to GH₵ 763.8 million reported in December 2019.
While the Ghipss Instant Pay (GIP) had an increase in total transaction value of GH₵ 1511.1 million in December 2020 as against GH₵ 315.1 million within the same period in 2019.
Transactions on Gh-link also recorded an increase total value of GH₵ 41.5 million in December 2020 compared with GH₵ 29.9 million in December 2019.
Bottom line
Therefore this data is indicating that financial transactions in Ghana are shifting at a fast pace from traditional banks to the platforms offered by telecoms companies such as MTN Ghana, Airtigo Money, and Vodafone Cash.
Progressively, the range of mobile accessible goods and services has successfully extended to the purchase of mobile communication credits, financial services, payment of public service bills or salaries, among others.
By Masahudu Ankiilu Kunateh, African Eye Report
