On the 10th of May 2018, the government of Ghana together with the Ghana Interbank Payment and Settlement Systems Limited (GHIPSS) launched the mobile money interoperability system, which is meant to enhance Ghana’s financial system. The system is to allow the easy transfer of money across all mobile money platforms, without restrictions and facilitate the transfers of monies between bank accounts and mobile money platforms. The move by the government to introduce this system is to move Ghana towards a cashless society, as well as boost financial inclusion and increase investments into our country.
In making a cashless society, this system has made it possible for people to send and receive monies from far instance, sending money across various mobile money networks without restrictions.
Gone are the days when one would have to withdraw physical cash from a mobile money account, in order to be able to send the same money to a receiver on a different mobile money network. This move by the government has, as a result, made online payments much easier, since differences in mobile money services is no longer a barrier to making payments.
Businesses will hence improve as a result of the easy movement of monies, which will, in turn, save more time for production, ensure easy money transfers and create easy access to financial institutions without moving from one’s comfort zone. Imagine ordering your favorite food a click away with Pizarea online payments, with no hassle due to easy transfer of funds in the comfort of your home. This move has also facilitated the easy movement of monies from mobile money accounts to bank accounts and vice versa which businesses will also benefit from.
The Ghana Interbank Payment and Settlement System Limited (GIPSS) were given the mandate to make this happen, after an agreement with Sibton Switch to enable this system did not go through. The Vice President of Ghana; Dr. Bawumia who was the main stakeholder in this venture believes that the initiative will also bring about more investments in the country, in all sectors of businesses because the country is moving toward a cash-lite or cash economy. This is because this intervention has made it easier to circulate and move money amongst financial institutions of different kinds, without necessarily moving hard currency.
Again, this move has promoted financial inclusiveness and hence, accessibility of financial institutions has been increased as a result, this will lead to the reduction of queues in banking halls, since one can do online transactions between financial institutions in their comfort zones, without any hassle or waste of time which can be transmitted into productive work. This program will also result in reducing the carrying of hard currency around, which is not always safe to do when one has to carry hefty amounts of physical cash.
In conclusion, I believe mobile money interoperability is very necessary for the development of businesses, Ghana and the world in general because it will not only help in the easy movement of monies but make reduce the carrying of hard currency, ensure easy access to financial institutions, save more time for productive work and enable e-commerce business development.
The easy movement of money amongst mobile money service providers and banks which will most definitely drive Ghana into becoming a cash-lite economy, increase investments in the country and promote financial inclusion.
Source: Henry Ameleke