GhanaPay mobile wallet, another step in digitalization in the financial system – Addison

Governor of the Bank of Ghana, Dr Ernest Addison

Governor of the Bank of Ghana, Ernest Addison, said the launch of the GhanaPay mobile wallet on Wednesday, June 15, 2022 “marks another milestone in the digitalization of the financial system”.

Speaking at the launch, Dr Addison said, “Banks in Ghana are reinventing themselves and have continued to respond positively to the competitive nature of payment systems, characterized by increased consumer preferences for convenience and payment options. frictionless.

“This collaborative effort of a common e-wallet would allow economies of scale by pooling resources. By establishing this common GhanaPay mobile wallet, the cost of testing any new technology for each bank is reduced and enables new ways of doing business. Indeed, this is an exciting development for Ghana’s payment systems landscape and demonstrates how collaboration with the banking industry can offer solutions for transforming and deepening the payments ecosystem.

Read Dr. Addison’s full speech below:

1. Allow me to extend special thanks to His Excellency, the Vice President of the Republic of Ghana, Dr. Alhaji Mahamadu Bawumia for honoring this special occasion. We acknowledge your contributions over the years and your continued support of the country’s digitization agenda.

2. Ladies and gentlemen, today’s launch of the GhanaPay Mobile Wallet marks another milestone in the digitalization of the financial system. Banks in Ghana are reinventing themselves and have continued to respond positively to the competitive nature of payment systems characterized by increased consumer preferences for convenience and frictionless payment options. This collaborative effort of a common e-wallet would allow economies of scale through pooling of resources. By establishing this common GhanaPay mobile wallet, the cost of testing any new technology for each bank is reduced and enables new ways of doing business. Indeed, this is an exciting development for Ghana’s payment systems landscape and demonstrates how collaboration with the banking industry can offer solutions for transforming and deepening the payments ecosystem.

3. The banking sector has demonstrated its resilience with its ability to provide critical support to businesses and households during this pandemic. The industry push for electronic payments, especially during critical times of lockdown, has enabled businesses and the public to make and receive payments using a digital wallet. We have also witnessed banks’ support for borrowers, including moratoriums, while ensuring that depositors’ funds are not compromised. These interventions have been underpinned by past reforms aimed at strengthening and revamping the banking sector, alongside increased compliance and regulatory standards.

4. Ladies and Gentlemen, Ghana’s progress in migrating to electronic payments is commendable. In less than a decade, GhIPSS Instant Pay transactions valued at GH¢420,000 in 2016 have jumped exponentially to reach GH¢31.4 billion in 2021. At the same time, the value of mobile money transactions and that of agents registered mobile money also increased by thirteen and four times respectively. in 2021. Another key development was that cash usage in Ghana, measured by currency in circulation as a ratio of gross domestic product (GDP), fell from 6.8% in 2016 to 4.7% in 2021. In addition, the per capita use of checks in Ghana, which was 25.67 in 2016 has fallen to 18.9 in 2021.

5. The emergence of new business models in the banking sector, as well as partnerships with financial technology companies (FinTechs) in the provision of payment-related services, have also contributed to bridging the financial inclusion gap. Beyond the ability to compete directly on product offerings and service quality, bank-FinTech collaboration would help achieve common goals and enable participants to achieve economies of scale in expanding services. payment networks, as well as reaching a critical mass of financial inclusion in the country. This collaboration is commendable and must therefore be continued because payments represent an essential activity for companies and individuals. Improving the efficiency of financial transactions through electronic payments would not only increase productivity, but also minimize costs. Beyond this, and at the macro level, the migration to electronic payments also has the potential to improve Ghana’s competitiveness and efficiency in cross-border transactions. The benefits of a successful migration to electronic payments in terms of efficiency, gains and savings are enormous and should be encouraged.

6. Today’s launch of GhanaPay is one such innovation in the financial industry that aims to address some of the challenges associated with current banking-centric models by providing an open application that leverages the network infrastructure of the entire banking sector. With GhanaPay, merchants do not necessarily need to have banking relationships with multiple banks to receive bill payments from other bank customers. Additionally, customers need only maintain an account with one bank to make bill payments to GhanaPay’s entire network of registered customers and merchants. GhanaPay therefore facilitates the pooling of resources across the banking sector and reduces duplication. The industry is expected to be driven by this innovation and continue to retool and respond to the changing environment.

7. Beyond the huge success in making payments convenient and accessible to consumers, cash payments and the use of checks remain widespread, while electronic payment adoption is uneven across regions and segments Population. In this regard, there are opportunities for more inclusive and wider adoption of electronic payment. With the introduction of GhanaPay, the banking industry can fill this market gap through continued collaboration to expand merchant acceptance with a greater focus on lower-tier merchants. There is no doubt that proper support to the payment systems value chain and public education, lightweight infrastructure solutions such as GhanaPay, can boost the acceptance of electronic payments.

8. The introduction of GhanaPay is commendable but there is still room for expansion and banks need to step up their efforts to digitize the value chain for merchants and users through digitization of payments to distributors, wholesalers and retail outlets.

9. Another important consideration is to build public trust in electronic payment systems to drive inclusive finance. Payments data provides detailed insights into consumer and merchant behavior. Banks have a huge responsibility to ensure that data is not unsecured or mismanaged. The security, integrity and confidentiality of data form the basis of trust which is crucial for the functioning of the financial system.

10. Ladies and gentlemen, cashless payments are not limited to electronic payments. It should be about putting the consumer at the center of innovation for greater value creation in electronic payment products at competitive prices and without friction. While standardized and interoperable systems can improve competition and efficiency, they can also create new forms of risk due to interconnections. Banks must ensure operational resilience and continuously strengthen the cybersecurity of market infrastructures and terminals against cyberattacks.

11. In conclusion, Ladies and Gentlemen, the introduction of GhanaPay complements measures to accelerate Ghana’s migration to electronic payments and we encourage the banking industry to collaborate and further explore more innovative ways to achieve greater efficiency. in the payments ecosystem. On that note, let me once again congratulate GhIPSS and the banking industry for the development of GhanaPay. I fervently hope that this spirit of collaboration will be maintained and strengthened to move the country forward towards a successful migration to electronic payments and towards an efficient and effective payment system.

Thanks

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