Total value of mobile money transactions far exceeded the value of cheque transactions, by GH¢389 billion last year, data from the Bank of Ghana has revealed.
Whilst, total value of MoMo transactions was estimated at about GH¢569 billion in 2020, that of cheques was about GH¢180 billion.
The significant difference between the total value of mobile money transactions and cheque for last year indicates that majority of consumers, particularly retail customers, have now accepted MoMo for payment and transactions rather than cheque clearing. This is largely because it is instant, faster, convenient and less cumbersome.
Fast forward, cheque transactions will be mainly used by wholesale or corporate consumers who have no choice but to issue cheques for payments.
With cheque transactions expected to decline in the coming years, banks will have to find innovative ways to rake in revenue, whilst retaining existing customers.
Beside ATM cards and other electronic products, they will have no option to introduce their own mobile money solutions in order to compete with the telecom firms. Alternatively, they will have to collaborate with the telcos to develop their mobile banking solutions or keep their MoMo transaction funds for a reasonable period, so that they can earn enough floating income.
Both banks and telecoms have platforms that can drive digital payments [deposits and withdrawals], thus collaborating will take the nation’s digital banking to another level.
Ghana’s is presently ranked number one in mobile money transaction in West Africa, but trails several countries in the East and Southern Africa, that have moved their mobile money banking to an advanced level.
Mobile money users hit 38.5
According to the BoG data, registered mobile money accounts stood at 38.5 million at the end of 2020.
However, active mobile money accounts was 17.1 million.
Also, 424,000 agents had registered as at December 2020, but the active agents are 328,000.
For cards, an estimated 4.8 million consumer used debit cards of commercial banks for payment transactions at the end of December 2020. That is compared with 4.5 million in the first quarter of 2020.
Latest Stories
-
Dancer Championrolie named brand influencer for Tecno Camon30
5 mins -
Election 2024: National Peace Council cautions the clergy against spiteful comments
10 mins -
Basketmouth touts Dave Chappelle ‘comedy god’
14 mins -
It’s a shame ‘galamsey’ issues no longer make headlines – Sir Sam Jonah slams Ghanaian journalists
28 mins -
Stay original; don’t take anybody’s material – Basketmouth to comedians
34 mins -
I ignore a lot of things – Jacinta on how she deals with challenges
51 mins -
Full text: Sam Jonah’s speech at GJA 75th anniversary launch
1 hour -
Allow private sector participation in ECG, GRIDCo to make them viable – Otumfuo to government
2 hours -
Kejetia traders demand individual meters to end persistent power cuts
2 hours -
Ghana’s rising soccer star Michael Eshun makes strides in Canada
2 hours -
Funny Face visits accident victims including 2 children
2 hours -
Prez Akufo-Addo says over 5 million students have benefitted Free SHS: True or False? Here is what we know
2 hours -
Employing tobacco harm reduction as a public health policy to drive down smoking rates in Nigeria, Ghana and Cameroon
2 hours -
Global public debt edged up to 93% of GDP in 2023 – IMF
3 hours -
MPs back smoking ban for those born after 2009
3 hours