Business News of 2014-01-31

GhIPSS plans instant interbank funds transfer

The Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) says it plans to introduce an electronic payment system that will allow seamless instant interbank transfer of funds via mobile devices as well as Internet platforms.

The gh-link Instant , when introduced, will ease the reliance on the previous payment system wherein interbank transfer of funds take three hours even under express transactions through a system known as Direct Credit, under the Automated Clearing House (ACH), and 24 hours if it is not under express transaction.

Speaking to journalists in Accra, Archie Hesse Chief Executive of GhIPSS, said: “We are coming out with a development such that will allow interbank payment to be made instantly. It will be available to all banks that are connected to the gh-link system.”

gh-link is a GhIPSS interbank switching and processing system that interconnects switches of financial institutions and systems of third party institutions to enable them utilise a common platform for interbank transactions in an effective and efficient manner.

“In jurisdictions where instant pay has been introduced, you see a drastic reduction in the use of direct credit because some banks tend to hold onto funds to keep up with the float, so people start migrating to the use of the instant payment service,” Mr. Hesse said.

The service payment system will come in handy for businesses that want a quick and safe way of making or receiving payments.

He added: “One added benefit that will come with the instant pay system is the supply-chain system that we refer to as the e-Bills pay. This is used mainly by wholesalers. It is appropriate for wholesalers who are required to make payments before dispatch is done. We are also in talks with some wholesalers to sign them onto the platform. This system has been tried by our counterparts in Nigeria and it’s working very well”.