Liquidity for ‘momo’ agents

BY: Kwami Ahiabenu II (Ph.D.)
Library photo
Library photo

Mobile money is now the most preferred digital means of payment in Ghana. The simplicity of mobile money services is one of the reasons for its popularity.

Anyone with any type of phone can consume mobile money services by registering a mobile wallet, which serves as a store of value.

Mobile money service is organised around several players, namely the money phone provider, typically Mobile Network Operators (MNOs), who are licensed as Electronic Money Issuers (EMIs) by the Bank of Ghana.

Furthermore, Ghana Pay is offered by a consortium of banks in Ghana, while G-money is a service by GCB bank, with other private players. These companies serve more than 27 million registered mobile money accounts.

Mobile money agents are another important part of mobile money service architecture; they play a crucial role as an intermediary between EMIs and mobile money users, especially when exchanging cash.

The prominent role played by mobile money agents makes them the face of mobile money.


Although mobile money agents provide many services, one of the most popular services they provide is called cash-in and cash-out.

This service allows a mobile money user who wants to withdraw cash from a mobile money wallet to execute what is called a cash-out by following prompts to authorise the mobile money agent to debit a stated amount of cash from the user’s mobile money wallet.

Once the authorisation goes through, based on the availability of funds and security checks, the mobile money agents will give the client the said amount in cash.

Essentially, the mobile money agent is serving as a “human ATM” dispensing cash to users. For the mobile money agents to perform this function, they must have sufficient cash.

If, for some reason, they do not have this cash in the till, the cash-out service does not work. On the other hand, if a client wants to deposit funds on their mobile money wallets or send funds to a third party, the mobile money agent needs to perform a cash-in function.

In this direction, the mobile money agent will accept physical cash from the clients and, in return, credit the clients' mobile money wallet with the said amount or transfer funds to a third party on the client’s behalf.

The mobile money agent can only perform this function of cash-in if they have enough electronic money on their mobile money agents’ wallets, called an e-float. If for some reason there are no funds on the e-float, the mobile money agent cannot provide a cash-in function.


Unfortunately, several mobile money users are denied services due to lack of liquidity. There are no easy answers to solving the mobile money agents’ liquidity challenges.

Low operating capital means some mobile money agents do not have physical cash or funds on their e-float to serve their clients.

Secondly, some mobile money agents do not have the skills and knowledge to correctly predict the optimal physical cash or e-float amount they need to maintain to be able to service clients comfortably.


Several solutions are proffered to solve this quagmire. First, EMIs, through super agents; supports agents with physical cash and e-float top-ups on demand based on agreed business arrangements.

Second, mobile money agents’ operations should have technology embedded to properly record their transactions and spot trends to predict their cash requirements.

Third, some FinTechs, recognising this liquidity challenge provide mobile money agents with short-term loans to deal with physical cash and e-float demands.

Lastly, some banks and financial institutions, including microfinance, also supports mobile money agents with on-demand liquidity support.

In conclusion, mobile money agents are now firmly interwoven into our society, therefore, any innovations that can help them solve their liquidity challenges will go a long way to sustain the growth of mobile money as a tool for development.

The writer is a Technology Innovations Consultant. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.