Total value of mobile money transactions for the first eight months of this year far outstripped the value of cheque transactions, by more than GHS42 billion, according to the Summary of Macroeconomic and Financial Data.
This means that consumers’ now prefer mobile money for transactions, rather than cheque clearing.
The significant difference between the total value of mobile money transactions for the first eight months of this years estimated at GHS56 billion, compared to GHS14 billion for that of cheque transactions clearly signals that consumers, particularly retail customers, are now opting for MoMo transactions rather than cheque clearing.
Going forward, cheque transactions will largely be used by wholesale or corporate consumers that have no choice but to issue payments with it, while retail consumers will prefer MoMo transactions for payments and withdrawals since it is instant and faster.
As cheque clearing dips, banks will lose some revenue as they may not get the required fees from the transactions they use to obtain before.
They will therefore have to find innovative ways by introducing their own electronic money transactions or encourage the telecom firms to keep their MoMo transaction funds with them for a reasonable period, so that they can earn enough floating income.
Banks, Telcos must collaborate to revolutionize mobile money
Banks and telecom firms must collaborate to modernize the mobile money or SMS banking in order to rope in more consumers.
Both have platforms that have merits to 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.
The Central Bank’s data also revealed that registered Mobile Money Users as of the end of August this year stood at 34.5 million but active users stood at 15.9 million. For ezwich, the total transaction value in August this year was GHS579 million.
In terms of Mobile Money Interoperability, that is undertaking mobile money transaction between two mobile service providers, total transaction value was estimated at GHS685 million in the first eight months of this year.
Gradually, many underbanked and unbanked segment of the population are being rolled onto the financial system due to the significant use of MoMo for transactions by retail consumers, in particular.
So, with the gradual reduction in cheque transactions, the nation is moving closely into a cashlight society.