Archie Hesse
MORE PEOPLE used the GhIPSS instant pay (GIP) services between January and March this year, recording a little over one million (1,007,510) representing a growth of 693.8 per cent compared to 126,925 transactions during the same period last year.
GhIPSS Instant Pay is an electronic payment system that enables a customer to transfer money from one bank account to another of a different bank or to a wallet and the transfer is effected instantly.
Though instant pay can be accessed from the banking halls, it is mostly available on the various internet and mobile banking platforms of the banks. Many Fintechs also ride on the GIP technology for their money transfer services.
Electronic payment channels have become very important in the wake of the novel coronavirus (Covid-19), as cash could be a channel of spreading the disease. Although a full assessment of the impact of Covid-19 on electronic payments is yet to be done, a further analysis of the data from GhIPSS shows a significant increase in GIP transactions in the month of March, when Ghana started recording its positive cases.
The figures showed that while GIP volumes in February this year dropped by seven per cent compared to January of the same year, the volume of transactions increased in March by 53.6 per cent. Thus GIP was used many times in March compared to January and February of 2020, a development attributable to increased use of electronic payments due to Covid-19.
Chief Executive of GhIPSS, Archie Hesse, explained that an overwhelming majority of GIP transactions involve people moving funds from their bank accounts to mobile money wallet of others or themselves. He added that this trend showed how convenient mobile money wallets had become for many people.
The challenge however is that many people, after moving funds from their bank account to mobile wallets, cash out to make payments. But with the launch of the universal QR code, funds stored in mobile money wallets could be used to make payment, Mr. Hesse further explained.
GhIPSS, last month, launched the universal QR code which enabled individuals to pay for goods and services by scanning displayed QR codes with their phones. Users of feature phones can also pay via QR Code by dialling a merchant’s number that will also be displayed at the location.
A business desk report