Case Study: Money Transfer in Ghana
BICT LEVEL 300 MIS ASSIGNMENT
JOHN NII ARMAH HAMMOND POSTINO DUGLE
20081462
20081467
MOBILE MONEY TRANSFER IN GHANA, CHALLENGES AND ECONOMIC BENNEFITS
INTRODUCTION The introduction of mobile money service is taking place in isolation but in parallel with the advent and expansion of other financial electronic payments services. One of these is E-Zwich, an electronic platform that enables the loading and spending of electronic cash and also allows the settlement of inter-bank claims in addition to online transactions. Others are being made available over the Internet and through SMS-text messages. The government regards these services as banking. They are strictly regulated and licensed by the Central Bank- Bank of Ghana under its branchless banking policy. Both MTN and ZAIN SIM cards are enabled to utilize the service but each new subscriber needs to register for the service at before it is activated. Upon activation, the user is provided with a secure electronic “wallet” where funds can be disbursed or uploaded. The users can either exchange electronic money for physical cash (cash out) at shops, partner banks and accredited agents or make use of it in making purchases or transfers.
Enabling a Cash Flow to Rural Areas In general, the most popular mobile money service is money transfer. The trend is for users in urban areas to transfer funds to recipients in rural areas. Traditionally in Ghana, city dwellers often send money to members of their extended family living in rural areas.
Other typical services include the purchase of mobile phone airtime, goods and services through electronic transfer of money from user's wallet to the merchant's account.
Commenting on money transfer via mobile phones, Carl NiikoiAshie, an mcommerce (mobile commerce) specialist at Zain who works on ZAP, said: “The customers can 'cash in' by loading money onto their ZAP wallet, then send the money to someone else on their phone in a simple process. The person
JOHN NII ARMAH HAMMOND POSTINO DUGLE
20081462
20081467
MOBILE MONEY TRANSFER IN GHANA, CHALLENGES AND ECONOMIC BENNEFITS
INTRODUCTION The introduction of mobile money service is taking place in isolation but in parallel with the advent and expansion of other financial electronic payments services. One of these is E-Zwich, an electronic platform that enables the loading and spending of electronic cash and also allows the settlement of inter-bank claims in addition to online transactions. Others are being made available over the Internet and through SMS-text messages. The government regards these services as banking. They are strictly regulated and licensed by the Central Bank- Bank of Ghana under its branchless banking policy. Both MTN and ZAIN SIM cards are enabled to utilize the service but each new subscriber needs to register for the service at before it is activated. Upon activation, the user is provided with a secure electronic “wallet” where funds can be disbursed or uploaded. The users can either exchange electronic money for physical cash (cash out) at shops, partner banks and accredited agents or make use of it in making purchases or transfers.
Enabling a Cash Flow to Rural Areas In general, the most popular mobile money service is money transfer. The trend is for users in urban areas to transfer funds to recipients in rural areas. Traditionally in Ghana, city dwellers often send money to members of their extended family living in rural areas.
Other typical services include the purchase of mobile phone airtime, goods and services through electronic transfer of money from user's wallet to the merchant's account.
Commenting on money transfer via mobile phones, Carl NiikoiAshie, an mcommerce (mobile commerce) specialist at Zain who works on ZAP, said: “The customers can 'cash in' by loading money onto their ZAP wallet, then send the money to someone else on their phone in a simple process. The person