Everything you need to know about mobile money in Ghana
In many ways, the global pandemic has brought the dawn of something new. In Ghana, customers and businesses are embracing this shift to deal with the health impacts of COVID-19.
Many Ghanaians in the country and abroad need to send money to help support their loved ones, who may be impacted by the pandemic. Thankfully, mobile money (MoMo) is the innovation that has transformed the traditional ways of transacting money.
WorldRemit Content Team
• 6 mins read • Updated
Mobile money in Ghana
Mobile money is a fast, convenient, secure and affordable way of transferring money, making payments using a mobile phone. It’s estimated that 3 to 4 million Ghanaians are living abroad, many of whom regularly send money to their families back home via mobile money.
WorldRemit’s money transfer service makes sending money to Ghana simple and affordable for the Ghanaian diaspora. Mobile money is now one of the most important services for these transactions.
When mobile money was first introduced in Ghana in 2009, it took a while to gain as much traction as in other African countries. This happened due to the restrictions of the Bank of Ghana. Five years later, the Bank of Ghana revised their regulations and eventually released new e-money guidelines. These new regulations permitted mobile network operators (MNOs) to own and operate mobile money services under the supervision of the Central Bank.
Shortly after that, new players — like the telecommunications giant MTN — began heavily investing in creating awareness among customers, educating the public and recruiting agents and merchants. According to a Summary of Economic and Financial Data published by the Bank of Ghana in 2020, there are now 14.7 million active mobile money accounts and 235,000 active agents.
Mobile money in Ghana
Mobile money is a fast, convenient, secure and affordable way of transferring money, making payments using a mobile phone. It’s estimated that 3 to 4 million Ghanaians are living abroad, many of whom regularly send money to their families back home via mobile money.
WorldRemit’s money transfer service makes sending money to Ghana simple and affordable for the Ghanaian diaspora. Mobile money is now one of the most important services for these transactions.
When mobile money was first introduced in Ghana in 2009, it took a while to gain as much traction as in other African countries. This happened due to the restrictions of the Bank of Ghana. Five years later, the Bank of Ghana revised their regulations and eventually released new e-money guidelines.
These new regulations permitted mobile network operators (MNOs) to own and operate mobile money services under the Central Bank’s supervision.Shortly after that, new players — like the telecommunications giant MTN — began investing in awareness among customers, educating the public and recruiting agents and merchants. According to a Summary of Economic and Financial Data published by the Bank of Ghana in 2020, there are now 14.7 million active mobile money accounts and 235,000 active agents.
Why is mobile money so popular in Ghana?
In just a few years, mobile money has become one of Ghanaians’ most preferred payment methods. According to a 2019 report by the World Bank, Ghana has become the fastest-growing mobile money market in Africa.
Figures from Ghana Interbank Payment and Settlement Systems (GhIPSS) also indicate that mobile money interoperability (MMI) increased by 358% in the first quarter of 2020.
One of the main reasons why mobile money services are increasing in popularity is their convenience. Mobile money subscribers enjoy the ease of having instant access to their money at any time and anywhere. So, there’s no need to join long queues at the bank to withdraw or deposit money.
Mobile money services initially emerged as a tool to further financial inclusion — enabling people that were initially excluded from the formal financial system to gain tools and access to more mainstream services. Eventually, continuous innovations in the mobile money industry have revolutionised the way people financially interact in Ghana.
Mobile money interoperability, for example, was introduced in Ghana two years ago. It now allows for the seamless transfer of money from one mobile money account to another - across all networks.
How does mobile money work?
Mobile money services are usually owned and operated by either a mobile network operator (MTN or Vodafone) or a financial institution (bank).
The mobile money services that are typically offered include:
Peer-to-Peer (P2P) money transfers
Bill payments
Salary paymentsMobile money services also offer methods for converting physical cash into electronic funds in a customer’s mobile account (also called “cash-in”) and methods for converting electronic funds into physical cash (also called “cash-out”).
How can you start with mobile money?
Make sure that your recipient has a mobile money account.
Request the recipient’s mobile money account number and network name.
Review all the recipient information to ensure that all details are correct since numerous providers cannot guarantee the reversal of your transaction.
Choosing the best mobile money service in Ghana - things to consider
MTN Mobile Money
MTN Mobile Money has been the largest and the oldest mobile money provider since it was launched in Ghana almost a decade ago. Customers can visit the nearest authorised MTN Merchant with a valid photo ID card, such as:
National ID card
Voter ID, Drivers’ License
Passport
For example, with MTN Mobile Money, the merchant captures your details and gives you an MTN Mobile Money SIM card. You then insert your Mobile Money SIM in your phone, and you will receive an SMS prompting you to register. You can also register for MTN Mobile Money online by just visiting the MTN mobile money website.
Pros
Keeping true to “Everywhere You Go” brand slogan, MTN has a large network of agents, making it easy for you to register for an account and withdraw or deposit money.
The MTN brand has broad recognition among local businesses.
You can receive funds instantly onto your MTN MoMo wallet from any part of the world anytime and anywhere in Ghana.
MTN has partnered with several remittance partners, including WorldRemit, across the world to make this service available.
Cons
MTN’s network experiences occasional downtime, so it can be frustrating for subscribers whose payments are delayed because the system is down.
Vodafone Cash
Vodafone, the second-largest mobile telecom company, launched its mobile money service in Ghana in 2015.
The mobile money platform has over 2 million registered subscribers. It has a vast reach in rural areas with value-added services, such as their mobile agriculture initiative called Farmer’s Club.
Pros
There are zero charges when you send money to other Vodafone Cash customers.
You’re the only one who can withdraw or send money from your account.
Subscribers can use Vodafone Cash to pay for other Vodafone services (such as fixed broadband) without visiting a physical shop.
Vodafone Cash is integrated with the Vodafone App, allowing mobile users to pay bills, school fees and utilities quickly.
Cons
Vodafone customers sometimes complain about the network challenges and service stability in remote towns.
AirtelTigo Money
In 2017, network providers Airtel and Tigo formally merged their mobile money services to create AirtelTigo Money. With 400 retail outlets and over 2000 network locations across the country, AirtelTigo provides a wide range of services.
Pros
Customers can send money to family and friends through AirtelTigo Money at zero charges.
Customers can also send money up to GHS 100 to all networks at no cost.
New subscribers can register AirtelTigo Money via their WhatsApp line.
Customers that receive GHC 500 or more from remittances enjoy free international calls.
With WorldRemit, you can start sending money online today with no fee on your first three transactions. Click here for more details on sending money to Ghana.
Disclaimer: WorldRemit and its affiliates do not provide financial advice. This article has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial advice. You should consult your own financial advisors before engaging in any transaction.
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