TIG Post

Tag: mobile money

  • ‘Trotro’ passengers will soon pay fares through mobile money – Bawumia

    Dr. Mahamudu Bawumia, Vice President of the Republic of Ghana, has disclosed that ”trotro” passengers will soon be able to pay their transport fares from their mobile money accounts.

    The Mobile Money Payment Interoperability allows for the transfer of funds from mobile money accounts to bank accounts and vice versa as well as providing a link mobile or bank accounts to biometric payment card accounts (ezwich).

    This means every Ghanaian can now make payments and receive money without having to go to the banking hall.

    Speaking in an interview on ‘Kokrokoo’ on Peace FM on Tuesday, August 25, 2020, the Vice President noted that Ghana is the only country in Africa doing a Mobile Money Interoperability in the fashion that it has been developed under the Akufo-Addo administration.

    Dr. Bawumia revealed that the government is also initiating a universal Quick Response (QR) code to amalgamate all the telecom networks to ensure transactions are done universally across the nation.

    In so doing, it will be possible for transport bus passengers to pay from the accounts to promote a cashless system.

    Source: Peace FM

  • We cut $1.2bn MoMo interoperability cost to $4.5m Bawumia

    The Akufo-Addo government saved the Ghanaian taxpayer more than $1 billion in the award of a contract for the purpose of creating the mobile money interoperability, Vice President Dr. Mahamudu Bawumia has said.

    According to Dr Bawumia, before the NPP came into power, the erstwhile Mahama administration had awarded the contract for $1.2 billion.

    The contract was, however, cancelled by the Bank of Ghana when the New Patriotic Party (NPP) came to power and awarded it to a different company that executed it for $4.5 million.

    Dr Bawumia disclosed this in an interview on Accra-based Peace FM on Tuesday, 25 August 2020.

    The Mobile Money Payment Interoperability is the service which allows direct and seamless transfer of funds from one mobile money wallet to another mobile money wallet across networks.

    It was developed by the Ghana Interbank Payment and Settlement Systems (GhIPSS) with active collaboration of the mobile telecom industry.

    It creates convenience for mobile money users to transact business and drives financial inclusion, lowers cost of transaction, increases service reach and reduces reliance on cash for payments.

    It also provides a financial transaction engine that is versatile, efficient and robust and enhances patronage by both banked and unbanked segment of the population.

    Talking about the cost of the Mobile Money Payment Interoperability, Dr Bawumia said: “When we came, there was a contract to do the interoperability and that contract was to be done for $1.2 billion but at the end of the day, we looked at it, there were conditions that were not yet satisfied and the Bank of Ghana terminated the contract and instead of spending $1.2 billion to do mobile interoperability, we spent $4.5 million…”

    Dr Bawumia further stated that Ghana has become the fastest-growing mobile money market in Africa as a result of the mobile money interoperability since 2018.

    “Since 2018, when we did interoperability, Ghana has become the fastest-growing mobile money market in Africa, the fastest-growing and it is just very remarkable.

    “Today, mobile money transactions, as of 2019, was 200 million transactions.

    “If you look at banking transactions for 2019, it was 599,000…so, mobile money has been turned on its head now. Mobile money is more used than your traditional bank as banking transactions are only three per cent of the total,” the Vice President disclosed.

    Source: Class FM

  • Fraudsters look beyond MoMo wallets as they target bank accounts

    Mobile Money is a cash management solution which offers flexibility, total security and convenience of accessing money on a mobile phone anywhere and everywhere and is no doubt providing security and comfort to users.

    But the caution is that, users must be wary of fraudsters who may not only be seeking to empty their mobile money wallets but may also target bank accounts linked to mobile money accounts.

    As MTN Mobile Money executive, Godwin Tamakloe explains in a zoom discussion with members of the Journalists for Business Advocacy (JBA), it may be a simple mobile phone call telling you about settings from the MTN office. As the caller leads you through some steps, you may end up setting yourself up for fraud when they succeed in getting you to generate an ATM token for them.

    While mobile money technology has revolutionized monetary transactions and savings in many African countries including Ghana, wily fraudsters continue to devise strategies to fleece unsuspecting users.

    The impact of the MTN Mobile Money Service in Ghana for instance has been phenomenal. Over an 11-year period, a total of GH¢3.8 billion has been saved in, and transferred through the system and according to Godwin, such benefits dwarf the negatives.

    Yet, the fraudsters must be stopped, he maintains, and MTN has been working assiduously with the Ghana Police Service to achieve that.

    Lines blocked
    This year there has been a sharp decrease in the number of phone lines blocked as a result of mobile money fraud and an increase in the number of failed attempts reported.

    Industry experts explain that this is evidence that many more users are getting to understand better, the strategies used by these fraudsters. That notwithstanding, the importance of caution continues to be emphasized as the fraudsters continue to change their strategies.

    Sophisticated scammers
    Clearly, many strategies now abound for these scammers. As the technology gets more sophisticated, the scammers get more innovative and seek to exploit the service as technology offers them diversity. Thus, there has been the resort by some fraudsters to strategies such as pop up messages that trick customers into entering their PIN thereby divulging it to the scammers, fake kidnapping claims, romance scam, extortion, blackmail and emotional scam.

    Engage police
    But MTN remains unperturbed, Mr Tamakloe assures. Indeed, the company continues to engage the police to fight these fraudsters.

    This year, a total of 13 mobile money fraudsters have so far been arrested and there appears to be no let-up in the quest to nab more of them.

    MTN has requested that such fraudsters should be published in the media to serve as a deterrent to others. “Our management has written to the head of the police in that direction; we are still appealing to the police,” Mr Tamakloe reveals.

    Source: www.graphic.com.gh

  • GhIPSS resumes charges on Mobile Money Interoperability May 23

    The Ghana Interbank Payments and Settlements Systems (GhIPPS) has directed financial institutions to end the fee waiver granted to customers who use the GhIPSS Instant Pay (GIP), Mobile Money Interoperability (MMI) and ACH Direct Credit to transact business.

    “Following a review of financial position, we have decided we are unable to sustain the fee waiver regime any further and will re-instate all transaction fees with effect from May 23, 2020,” GhIPSS said in a statement.

    Earlier, GhIPSS announced a waiver of transaction fees across three platforms namely; GhIPSS Instant Pay (GIP, Mobile Money Interoperability (MMI) and ACH Direct Credit.

    This action was in support of the call to the financial services industry by the Bank of Ghana to encourage and promote the use of electronic payments and also to lighten the financial burden on the vulnerable members of the public in the light of the global pandemic and the impending containment measures by the Government of Ghana.

    According to GhIPSS, “The sustainability of this gesture was premised on the assumption that inflows from our cheque and e-zwich business will cushion the company over the period of the waivers. Conversely, there was a significant reduction in the use of these two services; gravely impacting our bottom line,” hence the decision to end the fee waiver on the three platforms.

    “We appreciate your support in passing on the benefits of these waivers to your customers and trust that we can count on you for future collaborations to promote the use of electronic payments services in Ghana,” the statement added.

    Background

    On March 19, the Central Bank announced some measures including the waiving of fees on some digital payment options including mobile money aimed at reducing cash transactions and boosting digital payments.

    One of the key measures was that all mobile money users can send up to GH¢100 for free (excluding cash out).

    This includes sending to a recipient on the same network, or another network via the interoperability platform. Also, all mobile phone subscribers are now permitted to use their already existing mobile phone registration details to be on-boarded for Minimum KYC Account.

    This subsequently led to GhIPSS announcing a waiver of transaction fees across three platforms namely: GhIPSS Instant Pay (GIP), Mobile Money Interoperability (MMI), and ACH Direct Credit.

    Source: myjoyonline.com

  • Active mobile money accounts hit 14.7 million

    Registered mobile money accounts as at the end of February 2020 was 32.7 million.

    This was 0.30% growth over the January 2020 estimate of 32.6 million consumers.

    According to the Summary of Financial and Economic Data, active mobile money accounts was estimated at 14.7 million in February, 2020. This is an increase of 4% over that of January 2020 figure.

    This means that many more people are undertaking banking transactions electronically.

    Registered agents were also estimated at 324,000 at the end of February 2020.

    In February 2020, the total number of transactions was estimated at GHS193 million whilst the total value of transactions was GHS30.1 billion.

    With respect to the clearance of cheques, GHS14.0 billion was cleared in February 2020, lower than the January 2020 figure of GHS15.5 billion.

    Regarding ezwich transactions, an estimated 965, 000 transactions took place in February 2020, representing a total value of GHS772.3 million.

    This is against 957,000 transactions, representing a total value of GHS589.4 million

    Source: classfmonline.com

  • Two mobile money fraudsters nearly lynched at Awutu Bereku

    Two suspected mobile money fraudsters luckily escaped death as they were nearly lynched at Awutu Bereku market in the Awutu Senya West District of the Central Region after they succeeded in defrauding three persons of an amount of Ghc11,750.

    The two suspects are Samuel Kabu 27-years and Gilbert Hoya 29-years.

    According to information gathered by Kasapa FM News Yaw Boagyan, they first defrauded one person at Kasoa Opeikuma and two others at Awutu Bereku.

    One of the residents who helped in the arrest of the suspects Otu Tamaklo disclosed that the suspects are known fraudsters who have succeeded in swindling several people of their monies.

    Luck ran out for the two suspects when they were busted by some vigilant youth while they tried to defraud someone.

    The angry residents were bent on visiting instance justice on the suspects but they were saved by some elderly persons around.

    The Awutu Bereku District Police Commander Superintendent Joshua Semanyoh confirmed the arrest of the suspects, adding that investigations have commenced into the matter.

     

    Source: Kasapafmonline.com

  • 72% of Ghanaians feel safe saving in mobile money wallets Afrobarometer

    An Afrobarometer survey has indicated that only 72 percent of Ghanaians feel safe saving in their mobile money wallets with 58 percent feeling banks are a very safe place to keep their investments.

    The report also revealed that only 25 percent of Ghanaians felt banks were somewhat safe with 8 percent and 7 percent respectively saying banks were not safe and not safe at all.

    Read: ISSER warns against attempt to tax mobile money transactions

    It added that 61 percent of Ghanaians did not feel safe saving with Saving and Loans institutions indicating they are either not safe or not safe at all.

    Despite the crisis in the financial sector over the last two years, the report suggested that many Ghanaians, however, remain confident in banks.

    Microfinance institutions on the hand, were given a vote of no confidence with 64 percent saying they are either not safe or not safe at all.

    Read: Vodafone CEO kicks against proposal to tax mobile money transactions

    On traditional susu collectors, the report said many Ghanaians considered it to be generally unsafe and rather opted for saving in mobile money wallets.

    Sample size of the survey in Ghana was 2,400 adult citizens and sentiments remained consistent over various demographics ranging from age, education level, gender and residence among others.

     

    Source: www.ghanaweb.com

  • BoG increases minimum capital for Mobile Money firms by 300%

    The Bank of Ghana (BoG) has increased the minimum capital for Mobile Money companies from GH¢5 million to GH¢20 million.

    This means an increase of about 300%.

    According to a statement from the BoG, “The emergence of new payment streams, institutions such as financial technology companies and the general acceptance of electronic money have necessitated the enactment of the Payment Systems and Services Act, 2019 (Act 987) to provide the legal and regulatory framework for the orderly development of the payment system.”

    Read: Keep your eyes on banks SEC boss to BoG

    “To operationalize Act 987, the Bank of Ghana hereby provides the minimum capital requirements, permissible activities and fees for all categories of payment service providers and financial technology companies.

    “The Bank of Ghana in furtherance of its objective of fostering financial innovation has taken into consideration the size, nature and characteristics of each financial technology company in prescribing the required minimum capital, governance and systems requirements,” the statement added.

    The Breakdown

    The BoG in the statement grouped the various licences under the Payment System Providers (PSP) into five PSP Electronic Money Issuer GH¢20 million, PSP Scheme (Payments cards like Visa and MasterCards) GH¢8 million, PSP Enhanced Licence (Payment Platforms like ExpressPay etc) GH¢2 million, PSP Medium Licence (Sub agents for the payment platforms) GH¢ 800, 000 and Standard Licence (startups fintechs.) No capital required.

    According to sources close to the Bank of Ghana, they settled on these new capital levels after extensive engagement with all the players in the sector.

    The companies have up to nine months to meet the new capital levels.

    According to the Payment Systems and Services Act, 2019 (Act 987), all mobile money operators need to set up a subsidiary and will have to seek approval from the Bank of Ghana.

    Ghana going cash-lite

    The Bank of Ghana has set 2024 as a deadline for the country to move towards an era where little cash is used in financial transactions.

    The move is part of efforts to reduce the cost of doing business and improve revenue collections in the country.

    Read: BoG pegs minimum capital for Mobile Money companies at GHC20m

    The government has said it would start electronic payments for its services from June this year.

    This has been influenced by mobile number interoperability.

    A 2016 Bank of Ghana Report revealed that the use of physical cash as the medium of exchange was on a continuous decline due to the increase in the use of other sources of payment, including cards, mobile money and the Ghana Interbank Payment and Settlement Systems (GhIPSS) Instant Pay.

     

    BoG pegs minimum capital for Mobile Money companies at GHC20m by The Independent Ghana on Scribd

     

    Source: Myjoyonline.com

     

  • Mobile Money service not shutting down – MTN dispel rumours

    Management of MTN Mobile Money says it has no intention of shutting down the service, contrary to social media speculations.

    In a statement in response to the rumours, MTN said they are “as a matter of fact incapable of doing so as per its regulatory and contractual agreements.”

    Value of mobile money transactions soar in the first half of 2019

    “MTN MoMo has operated in Ghana for the past 10 years and the track record of its growth and commitment to the Ghanaian market is evident,” the statement said.

    Read the full statement below:

    MTN MoMo remains committed to serving Ghanaians

    MTN Ghana has noted with grave concern a message being shared on social media asking about what clients will do in the event of a shutdown of the MTN MoMo Service.

    MTN Ghana wishes to state categorically that;

    Two jailed 20 years for robbery, acid attack on Mobile Money vendor

    1. It has no intention whatsoever to shut down its services and as a matter of fact, is incapable of doing so as per its regulatory and contractual agreements.

    2. MTN MoMo is not a centralised service being operated of the MTN Group level.

    3. Customers’ funds are safely lodged with our 18 partner banks in Ghana.

    4. MTN MoMo has operated in Ghana for the past 10 years and the track record of its growth and commitment to the Ghanaian market is evident.

    Further to these, MTN Ghana would like to state that, through the pioneering of MTN MoMo it has contributed significantly to driving the cash-lite economy agenda and as such remains committed to the over 100,000 Ghanaians it indirectly employs through an ecosystem of merchants and agents.

    MTN Mobile Money Service is the first mobile money service to have been launched in Ghana and the first to have received the ISO/IEC 27001:2013 certification.

    MTN Ghana has demonstrated its committed to the people of Ghana. Having successfully listed on the Ghana Stock Exchange as a Public Company in 2018.

    Source: Myjoyonline.com

  • Value of mobile money transactions soar in the first half of 2019

    The total value of half-year mobile money transactions for 2019 has hit GH¢ 140 billion.

    Data from the Bank of Ghana, captured in its Payment Statistics Report shows a 34% increase from the 2018 half-year figure of GH¢104 billion.

    Mobile money operators to submit data to credit bureaus — BoG

    The report chronicles the major payment systems being run in the country from, Cheque payments, Direct Debit and Direct Credit.

    As mobile money surges, other payment systems are experiencing a decline. Cheques experienced a decline both in volume and value.

    The volume of cheques declined from 3,638,930 in half-year of 2018 to 3,354,751 for the same period in 2019.

    This represents a 7.81% contraction. On the value of transactions, there was a decline from GH¢ 99.3 billion to GH¢84.5 billion for half-year 2018 and half-year 2019 respectively. This represents a contraction of 14.96%.

    Data also on mobile money interoperability also revealed an increase in value from GHC 212 million between May to Dec 2018 to GHC 217 million from January to June 2019.

    Source: Myjoyonline.com