The total value of mobile money transactions far exceeded the value of those of cheque by GH¢389 billion last year, data from the Bank of Ghana has revealed.
Whilst the total value of MoMo transactions was estimated at about GH¢569 billion in 2020, that of cheques was about GH¢180 billion.
According to data released by the Bank of Ghana, the difference between the total value of mobile money transactions and cheque for last year indicated that majority of consumers, particularly retail customers, have now accepted MoMo for payment and transactions rather than cheque clearing.
This is largely because it is instant, faster, convenient and less cumbersome.
Cheque transactions will be mainly be used by wholesale or corporate consumers who have no choice but to issue cheques for payments.
With cheque transactions expected to decline in the coming years, banks will have to find innovative ways to rake in revenue, whilst retaining existing customers.
Beside ATM cards and other electronic products, they will have no option to introduce their own mobile money solutions in order to compete with the telecom firms. Alternatively, they will have to collaborate with the telcos to develop their mobile banking solutions or keep their MoMo transaction funds for a reasonable period, so that they can earn enough floating income.
According to the data, registered mobile money accounts stood at 38.5 million at the end of 2020.
However, active mobile money accounts were 17.1 million.
Also, 424,000 agents had registered as of December 2020, but the active agents were 328,000.
For cards, an estimated 4.8 million consumers used debit cards of commercial banks for payment transactions at the end of December 2020. That is compared with 4.5 million in the first quarter of 2020.
Both banks and telecoms have platforms that can drive digital payments [deposits and withdrawals], thus collaborating will take the nation’s digital banking to another level.
Ghana 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.