Even though cash is still king, financial stakeholders in Africa are actively driving improvements to the continent’s e-payment infrastructure.
As a result of technological advancements, financial services now need to be accessible, useful, and valued.
To do this, the status quo must be challenged by creating quick and flexible digital payment methods. In this light, representatives of central banks and payment switch operators from several African nations are in Ghana to study its instant and interoperable payment solution, the Ghana Interbank Payments and Settlement System (GhIPSS), which is among the most advanced on the continent, as public and private investment flows to the development of financial infrastructure across the continent.
The goal of the peer learning visit, which AfricaNenda and GhIPSS planned together, is to increase awareness of fast and inclusive payment. From technical learning sessions, networking sessions, market tours, keynote speeches, and panel discussions, the countries will draw conclusions and pinpoint potential synergies.
Representatives of the central banks of Burundi, the Democratic Republic of the Congo, Rwanda, Sierra Leone, and switches such as Rwanda Rswitch, Zambia Electronic Clearing House Limited (ZECHL), and Central African GIMAC are participating in the visit.
In AfricaNenda’s State of Instant and Inclusive Payment Systems (SIIPS) in Africa Report 2022, GhIPSS was rated as progressing because it satisfies the fundamental requirements and offers inclusive functionality that supports the most popular channels and crucial use cases, including P2P and P2B transactions.
Dr. Robert Ochola, CEO of AfricaNenda, stated that Ghana’s experience could teach important lessons and best practices to regulators and politicians in other nations. “This is aligned with our agenda to accelerate knowledge sharing and enhance the capacity of African institutions.”
Africa has led innovations, a wave of fresh investments, and regulatory changes to reshape the continent’s e-payments scene. Instant Payment Systems (IPS) establish the fundamental pillars on which suppliers of digital financial services can construct client-focused, value-added services.
Despite these developments, a sizable number (57%) of African adults still experience formal financial exclusion as a result of enduring obstacles like poor relevance and unaffordability of solutions, access restrictions, and worries about safety and security, among other things. In order to achieve universal financial inclusion by 2030, it is anticipated that GhIPSS will create inclusive payment systems across Africa.
GhIPSS had completed an average of 17.9 million instant payment transactions per month as of December 2022. 55 financial institutions are part of Ghana’s extensive ecosystem of interoperability, and they collaborate to make it easier for money to travel between Ghana’s various payment platforms.
A thorough case study by AfricaNenda indicates that GhIPSS can advance toward mature inclusion with more model modifications.
Ghana’s development of an immediate payment system has advanced to various phases, which can serve as an example for other African nations.
All banks in Ghana, including the ARB Apex Bank and its affiliates, savings, and loan companies, and Third-Party payment service providers (international card schemes, mobile money companies, and fintech), utilize the payment infrastructure provided by GhIPSS.
Archie Hesse, the CEO of GhIPSS, expressed excitement about the partnership while also noting that it will share valuable experiences across the continent.
“GhIPSS is excited about this partnership as it affords us the opportunity to share the experiences and lessons learned on our journey to achieving inclusive payments. I am optimistic this knowledge-sharing experience will provide the needed guidance to the various participating countries as they embark on the development and deployment of their instant payment solutions”.
Archie Hesse
In line with its order, GhIPSS has implemented and currently manages the following:
- National Biometric Smart Card Banking & Retail System- e-zwich®
- Cheque Codeline Clearing (CCC) System
- Automated Clearing House (ACH) Systems
- National Switching and Processing System – gh-link™
- GhIPSS Instant Pay – (GIP)
