Business transactions across all sectors of the economy most notably those consummated by Small and Medium Enterprises (SMEs) are expected to increased significantly following the implementation of phase two of the mobile money interoperability.
Operators in the SMEs industry can now conveniently transfer funds for business transactions across the three payment platforms, namely mobile money wallet, e-zwich and bank account.
Reports indicate that the completion of this alignment of the various payment platforms has made Ghana one of the few countries in Africa to have achieved such universal interoperability.
This exercise is part of mechanisms aimed at formalizing and modernizing the economy to enhance productivity and domestic trade.
Speaking to the Goldstreet Business, Financial Analyst, Sydney Casely Hayford said the fusion of the payment systems into a single platform will enable a surge in the transactions of SME’s in a convenient and most efficient manner.
“A lot of the time, SME’s transact business through payment by cash. The benefit of this system is that the economy can be run throughout without people necessarily going to the bank to convert mobile money to cash for business transactions”, he said.
Some financial players have stated Ghana is gradually moving closer to becoming a cashless economy should the system be used efficiently and effectively. Gains of mobile money interoperability on SMEs are widespread, though not very much data is available.
In a recent study conducted in the Ugandan capital, Kampala on the impact of mobile money introduction on SMEs, it was established through qualitative data that over 40 percent of transactions on the platform were used to purchase goods and services whereas the remaining corresponded to money transfers.
Most of the banking services and activities are now being replaced with mobile technology to enable customers have the luxury of accessing and monitoring their accounts without necessary having to be at the bank.
According to the Global System for Mobile Communications Association (GSMA), a UK group that represents mobile operators, Tanzania, Kenya, Egypt, Ivory Coast, Nigeria and South Africa are the leaders of cashless payment system on the continent.
By Dundas Whigham