Ghana's central bank introduced GhanaPay, a mobile wallet for banks and savings and loan organisations, including rural and community banks, in June.
The new platform, which was created in cooperation with the Bank of Ghana (BoG), the nation's central bank, is anticipated to set itself apart from earlier mobile money solutions in the nation, which were advanced by mobile network operators (MNOs).
In Ghana, MNOs initially took the lead in the mobile money boom and currently hold the lion's share of the market for mobile money services, with MTN and Vodafone being the most well-known providers in the nation, in contrast to other countries like Nigeria where mobile money operators must have a banking license.
Given the dominance of these MNOs, the introduction of GhanaPay appears to be an effort to strengthen banks' involvement in the delivery of mobile money services in Ghana, marking a shift from collaboration to a more competitive approach.
GhanaPay is free to use to begin with. Given that previous MNO mobile money wallets often charge fees in order to make money, this is a compelling concept all by itself. Depending on the supplier, different transactions are charged at different rates; nonetheless, fees as high as 3% of the whole transaction value are possible.
Additionally, since May, transactions involving mobile money in Ghana have been subject to the unpopular 1.5 percent eLevy transaction tax, which makes a no-fee mobile money solution a more alluring alternative to customers.
Second, compared to MNOs, banks can provide a wider range of financial services. Banks now have more alternatives thanks to the new GhanaPay wallet when it comes to offering loans and other credit services.
Last but not least, GhanaPay has the ability to introduce mobile money to sectors of the economy that have historically relied on different payment systems. When it comes to business-to-business (B2B) transactions involving the transfer of money from one bank account to another, for instance, it offers a direct mobile money interface between banks and account holders, making mobile payments an attractive alternative.
How does GhanaPay compare with other e-wallet payments?
Although GhanaPay offers a variety of advantages, it is a fairly new payment method which means that there are some downfalls when compared to other popular e-wallet payments. For example, world-renowned payment methods like PayPal, ApplePay, Boku, Skrill, Neteller, and others have years of experience behind their backs which means unbeatable technology and security.
Many industries use these payments methods including the retail industry, the travel industry, insurance, commercial, construction, and even new slot sites in the UK. These payment methods are reliable and have been used for many years, making them safe and secure to use.
Although GhanaPay is still new to the market, time will tell if it gains the success and reliability that these payment methods have gained.