MTN hopeful about the exponential growth of MoMo in Ghana
By Nana Appiah Acquaye, Accra, Ghana
MTN Ghana has expressed confidence in the exponential growth of mobile financial services in the country following the passage of the Payment System and Service Act 987 this year.
General Manager for Mobile Financial Services at MTN, Eli Hini assured delegates at this year’s second Mobile Money Stakeholders Forum held at the plush Movenpick Hotel in Accra, the implementation of the new Payment System and Service Act 987 next year, will lead the mobile financial service industry into a bright future.
Speaking on the theme: The Role of Regulation in Sustaining the Growth of Mobile Financial Service, Mr. Hini mentioned the Branchless Banking and the E-Money Issuers Guidelines as some of the key regulations introduced by the central bank, not only to transform the mobile financial services sector, but also to promote and ensure an efficient and safe non-cash retail payments and transfer of funds within the sector.
He noted that the regulatory framework also adopt and recognize the need for partnerships, since some of the services on the MoMo platform can only be delivered by financial institutions, hence MTN partnership with banks and other non-banking companies including insurance companies to deliver products and services on the MTN MoMo platform.
“Today you look at products we have on the platform, people ask is MTN given out loans? MTN is facilitating loans service, there is a partner who is a financial service provider mandated to give loans who has partner to deliver that services,” he said.
According to Eli Hini partnerships are very important for service to be delivered in a convenient way to customers.
“The whole service portfolio that exist today, partnership is what will continue to drive additional services on the platform, and so it’s important that we recognize that the framework encourages that partnership drive adoption and innovation,” he stressed.
The General Manager for Mobile Financial Services at MTN further lamented on section 17 of the Payment System and Service Act 987 and called on the central bank to deepen engagement with key stakeholders to ensure that it does not become disincentive for participation.
“It has come up and it’s still been discussed, and I believe it’s an area that we need to engage sufficiently to ensure that most importantly it does not become disincentive for participation but rather support the growth of the industry,” he averred.
Section 17 (1) of the Payment System and Service Act 987, stipulates that “a payment service provider shall ensure that while in operation, it maintains in the country a minimum paid-up capital unimpaired by losses including accumulated losses and other adjustment as determined by the Bank of Ghana”.
Passed in March this year, the Payment System and Service Act 987 is part of a broader strategy by the Bank of Ghana to create an enabling regulatory environment for convenient, efficient and safe retail payment and funds transfer mechanism.
Speakers at the forum included the Head of Research Department from the Bank of Ghana, Philip Abradu-Otoo, Chief Executive Officer of CoreNett Limited, Michael Amankwah and the Head of GSMA for Sub Sahara Africa, Akinwale Goodluck.