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It’s absolutely not surprising that mobile payments have gained popularity in Ghana as it is a mobile-first market that boasts of more mobile phones than people, and according to KPMG, an estimated 37 million mobile phone subscribers serve its population of 31 million.
These mobile devices are powered by different telecommunications network provider that allows subscribers to transfer money and make payments. Simply with the use of their mobile devices, transactions are easier, secured, and more convenient.
In Ghana, mobile money services are provided by telecommunications companies like MTN Ghana, Vodafone, and AirtelTigo. The Bank of Ghana reports that the cheques cleared for mobile money transactions amounted to US$2.82 Billion for January 2021. The Bank of Ghana also reports that in 2021, there were 40.9 million registered mobile money accounts and 17.5 million active accounts. And, the International Finance Corporation reports that Ghana is the fastest-growing market for mobile money services in Africa.
Opportunities Presented By Mobile Money
Ease of transfer: The fact that one has to go to the bank and queue in long unending queues made it difficult and frustrating for people to send money. However, with the help of mobile money, it has become easy and almost effortless to send money, from one mobile wallet to another.
Security: Ghanaians just like everyone out there that walks around with cash are worried that their cash will get stolen. Unlike cash, which makes you constantly afraid of your money being stolen, mobile money is safe. Once you are able to create and protect your personalised pin, your money is safe and secured.
Convenience and portability: Walking around with huge sums of money can be not only unsafe but inconvenient and exhausting, unlike mobile money. A lot of cash can be very heavy and tiresome, unlike mobile money, where the only thing you have to carry is a mobile phone to make your transactions from anywhere to anyone.
Challenges Posed By Mobile Money
The current legislative framework requires telcos to place their deposits with commercial banks, but the volume of funds attracted by mobile operators has exposed a vulnerability in the banking system. With billions of dollars in deposits, many market observers foresee MTN being the first of the domestic telcos to apply to the regulator for permission to establish itself as a digital bank, a move that could potentially be very disruptive to traditional banks.
Also, other challenges posed by mobile money are confidentiality and authentication. Confidentiality relates to how to protect transaction information, such as PINs, Passwords, and others being exchanged during a transaction, and authentication that ensures that both parties in the mobile payment system are who they claim they are.
Opportunities In Ghana
Ghana has recently become the fastest-growing mobile money market in Africa, as the Bank of Ghana reports that in 2021, there were 40.9 million registered mobile money accounts and 17.5 million active accounts.
The country’s experience provides a fresh perspective on its digital transformation and demonstrates that technology can help modernise the financial system as well as also support greater financial inclusion.
AZA Finance has multiple payout options such as funds paid directly into a mobile wallet, bank account, or cash. Collaborating with mobile money operators like MTN, Vodafone, and Airteltigo, and payment service providers who are integrated with mobile money, AZA Finance makes last-mile mobile payouts to beneficiaries in several African countries.
If you want to find out more about how AZA Finance makes last-mile mobile payouts, click here to book a meeting with our Ghana country manager, Nana Yaw Owusu Banahene.
