The Bank of Ghana (BoG) is predicting stiffer competition as banks prepare to directly operate mobile money(MoMo) vending points through the Electronic Payment and Financial Services law from July 2019.
By this, banks in the country will be allowed to brand specific points to render mobile money services. Speaking in an interview on the sidelines of the Ghana Most Respected CEO Breakfast Forum organized by the Business and Financial Times (B&FT), the Head of Payment Systems at the Bank of Ghana, Dr. Setor Amediku disclosed that two banks are aggressively preparing to roll out mobile money merchant shops across the country to compete with telcos.
“There are some banks that are very aggressively. The banks have put in place measures, they were just waiting for this act to be assented by the president. Now a bank will set up a subsidiary to do mobile money business and they will also be authorized with a minimum capital requirement. They would have to pay and they will also behave like MTN Mobile Money,” explained. Dr. Amediku was upbeat the new law will change the phase of the payment systems of the country, creating a healthy competition that will drive the cost of sending electronic money down.
Mobile Money performance in 2018
According to the Bank of Ghana, the value of transactions on mobile money platforms hit 233 billion cedis in 2018. The figure shows that the value of transactions went up to 233 billion cedis from 155 billion cedis recorded 2017.
By this, Mobile Money platform has been the fastest growing electronic payment platform. This has urged banks to take advantage of the growing trend.
Others share views
Meanwhile, the CEO the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS), Archie Hesse who was at the event was of the view that both the telcos and the banks have separate roles to play in the value chain.
On security of the Mobile Money Platform, the Director of Vodafone Cash, Martison Obeng-Agyei charged customers to be vigilant on electronic transfer of money to avert instances of fraudulent activities. On his part, Head of Consumer Banking, Ecobank Transnational Incorporated, Tara Squire maintained that consumers are to act responsibly in keeping their mobile money pins safe from fraudsters.
For the CEO of popOut, Maximus Ametorgoh, more education needs to done to equip consumers on Mobile Money fraud to avert such occurrences.