GhIPSS facilitated transactions hit GH¢175bn
Ghana Interbank Payment and Settlement Systems Ltd (GhIPSS) has witnessed consistent growth in the value and volume of its various initiatives, since it was formed almost a decade ago. From a total value of transaction of only GH¢3.8 million in 2008, which was its first year of operations, it has witnessed a huge jump to GH¢174.5 billion at the close of last year.
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Established in May of 2007, GhIPSS was mandated to migrate Ghana into an electronic payment community as part of efforts to modernise the country’s payment system.
The Bank of Ghana (BoG) subsidiary began with the introduction of e-zwich biometric smart cards and later went on to introduce the Payment Distribution System that enabled various emoluments to be paid through the e-zwich system.
Consistent growth
Interacting with journalists in Accra, the Chief Executive Officer of GhIPSS, Mr Archie Hesse, said the various initiatives introduced over the years had recorded consistent growth over the years.
From that first year’s GH¢3.8 million, it increased to GH¢54.6 billion in 2011, and GH¢125 billion in 2014.
In 2015, the transactions reached GH¢147.5 billion, with the figure settling at GH¢174 billion last year.
The significant growth in the value of the transaction GhIPSS had recorded was an indication of a steady drop in cash transactions in the country, Mr Hesse explained.
He said with continuous development of new initiatives and effective collaborations from banks and other stakeholders, electronic forms of payment would eventually become the norm in Ghana.
Other interventions
Apart from e-zwich, the GhIPSS has also introduced the electronic clearing of cheques, the Automated Clearing House (ACH) system, Gh-link ATM interoperability, the hybrid point of sales devices (P.O.S.) and the instant pay.
Last year, it also become possible for foreign remittances to be paid directly into the bank accounts of recipients as well as directly onto the e-zwich card.
Mr Hesse explained that those initiatives implemented through the banking system had accounted for the consistent and significant growth in the value of transactions.
Outlook
The outlook, he said, was even better as some initiatives introduced last year would gain momentum this year, adding that the story looked brighter as the company marked its 10th year of existence.
Currently, it is difficult to determine the value of cash transactions in the economy but the growth in electronic transactions by GhIPSS, telcos and others rolled out by financial institutions, including banks, suggests that over time, cash will give way to electronic forms of payments.
Market watchers say, just as cowries gave way to cash, so also cash would give way to electronic payments.