In 2020, the government of Ghana officially announced its global QR code payment platform. Institutions and banks will enable payments for their customers through the use of QR codes.
The platform was launched during the COVID pandemic when most services and businesses were moving towards digital technology.
Details
The platform, operated by Ghana Interbank Payment and Settlement Systems (GhIPSS)allows customers to make instant payments for goods and services from different funding sources (mobile wallets, cards, bank accounts) by scanning a QR code displayed by merchants with their smartphones.
The platform is interoperable, meaning customers can use any payment service provider to scan any QR code generated by any merchant.
By The Numbers
According to current estimates, the GhQR platform has about 130,000 merchants on board with its bulk 958,774 trading from 2022.
Mobile Money is still king
Despite the apparent adoption, many Ghanaians still prefer to use cash or mobile money for their transactions as they are more familiar and comfortable with these payment methods.
Mobile money transactions exceeded GHC 1 trillion in 2023, despite the implementation of the controversial electronic levy.
Cash is also considered more secure and convenient than QR payments, especially for small transactions. Mobile money is also widely available and accessible as it does not require a smartphone or internet connection.
Incentives
To overcome these challenges and increase the adoption of QR payments in Ghana, there is a need for more collaboration and innovation among stakeholders such as the central bank, GhIPSS, banks, payment service providers, merchants, customers and regulatory authorities.
Some of the possible solutions include:
- Create incentives and rewards for merchants and customers using QR payments such as discounts, cash back, rewards points or prizes.
- Improving infrastructure and network coverage in rural and remote areas or using alternative technologies such as offline QR codes or USSD codes that do not require internet access.
- QR payment integration with other popular payment methods such as mobile money or cards, or by allowing customers to use multiple funding sources in one QR payment transaction.
QR payments have the potential to transform the payments landscape in Ghana and place it among the leading cashless economies in the world.
However, there is still a long way to go before QR payments become mainstream and widely accepted by merchants and customers. Concerted efforts and innovative solutions from all stakeholders will be required to overcome the challenges and unlock the opportunities offered by QR payments.
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