Digital transactions for 2020 up by 103 per cent – GhIPSS report

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Digital payment and settlement products under the Ghana Interbank Payment & Settlement Systems (GhIPSS) saw impressive increases in both volume and value for the year 2020, compared to the same period in 2019.

This is in spite of the ravaging impact of COVID-19 on people’s lives and the operations of businesses in Ghana.

Latest data from GhIPSS indicate that at the end of 2020, a total of 77 million transactions were processed across all platforms, compared to the 38 million transactions processed in 2019, representing a 103 per cent  increase.

The value of transactions processed in 2020 was GHC254 billion, a 16 per cent increase compared to the GHC219 billion processed in 2019.

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The report

The report indicated that the transactions captured in the GhIPSS product performance report, which include electronic clearing of cheques, Automated Clearing House (ACH), e-zwich and gh-link, witnessed varying levels of increase in transaction volumes.

The major contributor to this performance was Mobile Money Interoperability (MMI), processing a total of 43.9 million transactions, representing a 367 per cent increase from nine million transactions processed in 2019.

It also stated that the GhIPSS Instant Pay (GIP) platform also recorded significant growth in both transfers from bank accounts to mobile wallets and transfers between bank accounts across banks.

“At the end of 2020, GIP transactions increased by 257 percent from 1.9 million in 2019 to 6.8 million. GhIPSS also recorded introductory transactions from new services such as Proxy Pay and GhQR code,” it noted

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COVID-19 factor

Speaking during a media briefing, Chief Executive Officer of GhIPSS, Archie Hesse attributed the increase to COVID-19.

“The upsurge in the use of these real-time services was largely influenced by COVID-19 related factors such as: the 3 weeks lockdown which restricted the physical movements of people, public awareness through extensive education discouraging the handling of physical cash and encouraging the use of electronic alternatives and the incentivisation from the financial services industry with fee waivers on their services,” he said.

For clearing house or bulk payment systems, the clearing house processed the second-highest volume of instruments and managed to record 0.10 percent increase to bring the total volume of cheques processed in 2020 to 14.9 million transactions.

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The clearing house was impacted by the 3 weeks partial lockdown as corporates who are the primary users of Cheques and ACH were unable to operate. Additionally, industries such as manufacturing, hospitality, travel and education have not been able to return to normal operations resulting in reduced economic activity.

Despite this, the clearing house still remains the preferred channel for processing high values especially by large corporate institutions. It also recorded a 9% increase in transaction value from GHC209 billion in 2019 to GHC229 billion.

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