Banks to break monopoly of Mobile Money with passage of new bill
The Bank of Ghana is hopeful the passage of the Payments and Settlements Bill by parliament would go a long way to transform electronic payment in the country.
The Bill which is before parliament is also expected to streamline electronic payments in the country and encourage its use.
What else is the bill going to do?
The Payment Systems and Service Bill was in 2017 reviewed by the cabinet for parliament’s consideration.
It is expected to allow banks to issue electronic money – thereby breaking the monopoly of telcos.
“Some universal banks have submitted applications to also issue electronic money under the Payment Systems and Services bill 2017 that is currently before parliament. The bill’s passage is expected to break the monopoly of telcos and allow other payment services providers to also offer varied payment services,” the BoG’s latest Payment Systems Oversight Annual Report, has said.
Bank of Ghana on the bill
According to the Bank of Ghana, this bill is a game changer for electronic payments.
Head of Payments at the Bank of Ghana Dr Settor Amediku tells JoyBusiness they are hopeful that parliament would pass the bill for necessary consideration by the president.
Ghana going cash-lite
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.
The government has already it would this year start electronic payments for its services from June this year.
This has been influenced by mobile number interoperability. 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.