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GhanaPay Offers Platform for Banks to Extend Services to Small Enterprises – GhIPSS CEO

CEO of GhIPSS says the rationale for introducing GhanaPay mobile money is to create a low KYC platform for banks to extend their services to the informal sector, which constitute over 85% of the economy.

The Chief Executive Officer of Ghana Interbank Payment and Settlement System (GhIPSS), Archie Hesse, has highlighted the potential of GhanaPay as a tool for banks to reach informal sector operators.

He explained that the mobile money service is crucial for connecting with micro and small enterprises, which are often excluded from traditional banking services.

Mr. Hesse pointed out that while mobile money has significantly aided in reaching the informal sector, it was traditionally dominated by telecommunication service providers and later by financial technology companies (FinTech).

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He said to extend banking services to the informal sector, it was essential for banks to enter the mobile money space and directly engage with micro and small businesses. This need led to the introduction of the GhanaPay mobile money service, enabling banks to offer their products to informal sector operators.

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The informal sector accounts for over 85% of the Ghanaian economy but largely remains outside the banking sector due to stringent Know Your Customer (KYC) requirements by banks. In contrast, mobile money services, including GhanaPay, have lower KYC barriers, making them more accessible to individuals and small enterprises.

GhanaPay, offered by universal banks, rural banks, and savings and loan companies, combines mobile money features with banking services. It is accessible via USSD (*707#) or through the GhanaPay App, available on Google Play Store and iOS App Store, bringing banking convenience to mobile devices.

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Banks leverage their synergies to offer various banking products on GhanaPay, making these services available to informal sector operators as well as regular retail and corporate customers. Some of the services include a Savings wallet which offers 2% or more interest on a dedicated savings wallet, separate from the regular GhanaPay mobile money wallet.

Another service is the Standing Instructions which enables users to schedule fund transfers to other people, settle recurring bills, or pay subscriptions, similar to the traditional Standing Order.

Users can set up multiple instructions to transfer funds to another GhanaPay user, a bank account, or a different mobile money network.

Sponsored Wallet is another service which allows users to allocate specific amounts from their GhanaPay wallet to a beneficiary, such as a ward or spouse, who can spend the allocated funds directly from the sponsor’s wallet without the need for a transfer.

Additional services offered to enhance financial inclusion are Crowdfunding, Bill Payment, and Merchant Payments.

Mr. Samuel Darko, Head of GhanaPay at GhIPSS, stated that the service is set to revolutionize mobile money in Ghana.

He urged the public to download the GhanaPay application on their phones or visit any bank to have it installed to benefit from the service. He made these remarks during a media briefing on the new features of the GhanaPay mobile money service.

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