Mobile Money has had an undeniable impact on the Ghanaian payment system.
It has introduced new payment options and increased access to financial services for many individuals and small businesses.
Mobile money actually refers to financial services delivered through mobile phone technology. In Ghana, mobile money services are provided by telecom companies and banks.
Each of them is known for specific features, and that’s what makes them dissimilar from each other. The most prestigious mobile-money platform in Ghana is MTN Mobile Money, launched in 2009 and offered by MTN Ghana, the country’s largest telecom company.
It’s not just the MTN providing Ghanaians with money solutions. Other prominent mobile money providers in Ghana include Vodafone Cash, AirtelTigo Money, and Ecobank Mobile.
The condition of the Ghanaian payment system was miserable before the advent of mobile money. Before the introduction of mobile money in Ghana, most people in Ghana relied on cash for transactions. This was especially true in rural areas, where access to banks and other financial institutions was limited.
As a result, many people could not participate in the formal economy and were susceptible to theft and other risks associated with carrying large amounts of cash. They never felt safe carrying a large amount of cash with them.
After the arrival of Mobile Money, things have improved at a rapid pace. Mobile money has changed this by providing a safe and convenient way for people to store and transfer money using their mobile phones. With mobile money, individuals and businesses can send and receive payments, pay bills, and make purchases without needing a bank account or credit card.
This has made it easier for people to participate in the formal economy and has helped to reduce the use of cash.
Access to financial services in the country has been streamlined. Ghana Mobile money has increased access to financial services for many people in Ghana. Before the introduction of mobile money, only a small percentage of the population had access to formal financial institutions.
However, with mobile money, individuals can open virtual accounts and access a range of financial services without needing a physical bank branch. This has helped to increase financial inclusion and has made it easier for people to save, borrow, and invest.
Mobile money Ghana has also positively impacted small businesses in Ghana. Many small businesses struggle to accept electronic payments due to the cost and complexity of setting up traditional point-of-sale systems.
With mobile money, small businesses can easily receive electronic payments using their mobile phones. This has made it easier for small businesses to do business and has helped to grow their sales and profits.
In addition to increasing access to financial services, mobile money has also helped to reduce the cost of financial transactions.
Traditional financial institutions often charge fees for services such as money transfers and bill payments. With mobile money, these fees are often much lower, making it more affordable for people to access financial services.
Overall, the impact of mobile money on the payment system in Ghana has been positive. It has provided new payment options, improved access to financial services, and reduced the cost of financial transactions. As a result, mobile money has helped improve the financial lives of many individuals and small businesses in Ghana.
By Dr. Michael Owusu
The writer is the Chief Operating Officer of KGL Group
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