Accra, Ghana//-The implementation of the Electronic Transaction Levy (E-Levy) by the Government of Ghana has slowed the growth of digital payments in the country.
However with renewed commitment by Mobile Money (MoMo) operators and Financial technology (Fintech) firms, digital payments are accelerating again.
These commitments and partnerships are also beneficial to consumers, government, regulators, investors and development partners.
This is because fintechs are a very critical part of the digital finance eco-system which is revolutionizing digital payments.
To further bolster Ghana’s digital economy, MoMo operators, especially MobileMoney Limited, are poised to continue to create shared value by investing in partnerships with stakeholders across various sectors of the Ghanaian economy to provide more value-added services to customers.
“For us, the future hinges on more partnerships because as market leaders we believe that the contribution of other players within the industry will help to drive and accelerate the development of the industry.
We can’t do it alone. We need the support of other like-minded businesses who also see the future of this business as pivotal to the development of this country. We will continue to work together and drive digital financial services across the length and breadth of Ghana”, the Chief Executive Officer of MobileMoey Limited, Eli Hini, assured.
“As MTN drives its platform agenda to create opportunities for others to leverage, MobileMoney Limited will continue to use its platform as a springboard for all in the digital payments, while delivering innovation and customer experience.”
Partnerships driving fintechs growth
Fintechs which are found in different sectors of the Ghanaian economy including health, banking, insurance and most recently in the mobile payment and e-commerce space are growing due to partnerships forged with MoMo operators, banks, and other financial services providers.
Indeed, Ghana’s fintech industry began in 1997 following the introduction of the Sika Card, a new financial product by the then Social Security Bank (SSB) Ghana now Societe Generale Ghana Limited which allows cashless transactions in the country.
Fast forward in 2001, IT Consortium launched its platform for Business-to-Business Solution, while the Government of Ghana introduced the e-zwich, an interoperable payment system in 2008.
The advent of Mobile Financial Services by MTN Ghana in 2009 with nine banking partners has democratized mobile money transactions in the country.
The democratization of mobile money transactions in the Ghanaian economy has instigated a paradigm shift to a new kind of retail banking system where large segments of the unbanked populace are being absorbed into the financial services sector.
With the aim of driving and accelerating the rate of innovation in the space, there are some 71 registered fintech businesses operating in Ghana today.
Impacts of Fintech
Fintechs which are the application of technology and digitization in financial services delivery are rapidly changing the face of the financial industry across the world by the impact of Digital wallets, Mobile Money popularly known in Ghana as MoMo, blockchain and payment innovation in Africa.
While digital Payments are payments that are conducted over the internet and mobile channels. So, any payment that is sent online or through mobile computing and internet-enabled devices can be referred to as digital payment.
Fintechs have spread rapidly over the last decade in Africa and across the world, yet, there is potential for growth. It has impacted and continues to impact every aspect of various economies especially the developing world in its financial inclusion drive.
Fintech solutions are providing powerful solutions for expanding access and usage of financial services in Ghana and beyond.
They are also creating job opportunities for thousands of Ghanaian youth across the length and breadth of the West African second largest economy after Nigeria.
Customer value is one of the impacts of fintechs. It drives the value of convenience and efficiency in operations.
Additionally, fintechs in Ghana and any part of the world drive the use of technology in solving day to day business operation challenges.
Fintechs are also the key drivers of financial inclusion- the availability and equality of opportunities to access financial services. So they are driving the effort to make financial services inclusive to all.
Despite their challenges including small management size, data privacy, consumer protection and limited supervisory capacity and monitoring, Fintech vendors focus on personalized services that meet the clients’ needs.
Fintechs open platform and application programming interfaces (APIs) which allows applications to be built on top of preexisting products.
Besides, competition within the Fintech space globally is growing exponentially on a yearly basis – As a result, some fintech companies have dipped into new markets to escape heightened competition.
The passage of the Payment Systems and Services bill into law by Ghana’s parliament has significantly triggered innovation and growth of electronic payments in the country.
Bottom line
With digitization and innovation at the forefront, and consumers opting for fast and convenient ways to make payments and transactions, digital payments have come to stay.
By Masahudu Ankiilu Kunateh, African Eye Report
