... Secures 7.5m euros to promote e-zwich
By Kofi AHOVI
The Ghana Interbank Payment and Settlements System (GhIPSS) is in talks with its Nigerian counterpart Nigeria Inter-Bank Settlement System (NIBSS) Plc to implement an interbank payment and settlement system between the two countries, BusinessWeek has gathered.
The system, when operational, would afford citizens of both countries irrespective of their locations within the two countries to conveniently transact business using their respective electronic payment cards on any bank’s Automatic Teller Machines (ATMs) or point of sales (POS) devices.
Speaking to the Chief Executive Officer of GhIPSS, Fredrick France, he said the move is intended to significantly improve the payment challenges faced by citizens of these countries when they are outside their country of origin.
He explained, “Irrespective of the payment card that a Ghanaian has, he can go to Nigeria and do any transaction as conveniently as if he were in Ghana and same goes for Nigerians when they are in Ghana.”
“It is the objective of GhIPSS to make payment faster, more accessible and more secured in order to facilitate business transactions,” he added.
He stated that the two institutions are now finalizing the procedures with the various banks in the two countries, “We are now agreeing on the mode of payment and settlement between central banks, that is whether payment should be done by the central banks or by the various individual commercial banks.”
The implementation of the Ghana-Nigeria interbank payment system would be preceded by the national switch in August, this year.
According to the CEO, its launch would significantly enhance the capabilities of the country’s financial services sector, as it will create a common platform for all the banks to perform their transactions.
“When this is operational, bank customers can use their ATM cards at any ATMs as against the current practice where only banks signed onto Visa enjoy that privilege in Ghana.”
The new national switch will accept any ATM card, thereby creating a lot of convenience for both the banks and their customers.
The CEO hinted that with the new system GhIPSS would also be able to switch information between the Visa and Mastercard platform and greatly enhance payments not only within Ghana but across West Africa.
He therefore urged the public to embrace the new developments in order to save time and cost.
The GhIPSS boss explained further that when the national switch becomes operational, the various mobile money services can switch transactions, maning that mobile money transfers can take place from a subscriber of one network to another network with ease.
France added that GhIPSS also hopes to use the national switch to link Ghana’s platform to that of the Francophone West African Monetary Zone (UEMOA).
The GhIPSS is a subsidiary of the Bank of Ghana, set up in 2007 and mandated to set up and operate the national switch incorporating a smartcard payment system and provision of smartcard services and in addition to managing the Cheque Truncation system.
It has also been mandated to operate an Automated Clearing House (ACH) for direct debit and credit and as well as a help desk to assist the payment system in general. GhIPSS’s responsibility is to manage, develop and promote these systems on an ongoing basis.
In a related development, government has secured a 7.5 million Euro funding to support GhIPSS to undertake the e-zwich rural branchless banking project, Finance Minister Dr. Kwabena Duffuor announced last week.
Speaking at the launch of the Ghana Automated Clearing House (GACH), an electronic funds transfer system, Dr. Duffuor said the money would allow GhIPSS implement a countrywide biometric system to ensure the quality delivery of financial services, especially to the unbanked and underbanked population.
"This technology will permit offline transaction and fingerprint recognition making it highly suitable for rural areas and for the uneducated people in our country," he said.
The GACH is expected to improve the bank payment systems’ infrastructure, by accelerating the pace of financial intermediation. In addition it supports safer and sound banking practices, towards improvements in the flow of commercial activity all over Ghana.
The facility is primarily an electronic funds transfer system and the preferred form of funds collection for organizations in developed and emerging economies.
Much of the activities surrounding the funds transfer take place among the participating banks and GhIPSS, which acts as the clearing house. With this system, an account holder can instruct a bank to make regular or recurring payments to a client or a firm on his or her behalf at determined dates.
Dr. Duffuor said the GACH would not only increase the payment alternatives in the economy but also provide greater choice for consumers and bank customers as well as enhance the speed and efficiency of the transfer and collection of funds among banks.
Dr. Kofi Wampah, Deputy Governor, Bank of Ghana, said the establishment of the GACH implied that businesses and the general public could now initiate automated payments through their banks without having to rely on a paper payment instrument.
"GACH will also increase the speed and safety of payment transactions as well as provide greater choice to players," he said.
However, Dr. Wampah urged the banks to make concerted efforts to increase the degree of awareness of electronic fund transfer services to overcome the slow pace of adoption of the systems and to also expand the reach of the services to the rural communities.
Fred France, the Chief Executive Officer of GhIPSS, said GhIPSS was in the process of implementing an open switch that would allow the processing of biometric, Europay, mastercard and other international and locally branded card transactions on behalf of banks in the country.
He said the new switch would also facilitate integration with other emerging payment systems such as internet payment gateways, mobile banking and telephone payment systems.
By Kofi AHOVI
The Ghana Interbank Payment and Settlements System (GhIPSS) is in talks with its Nigerian counterpart Nigeria Inter-Bank Settlement System (NIBSS) Plc to implement an interbank payment and settlement system between the two countries, BusinessWeek has gathered.
The system, when operational, would afford citizens of both countries irrespective of their locations within the two countries to conveniently transact business using their respective electronic payment cards on any bank’s Automatic Teller Machines (ATMs) or point of sales (POS) devices.
Speaking to the Chief Executive Officer of GhIPSS, Fredrick France, he said the move is intended to significantly improve the payment challenges faced by citizens of these countries when they are outside their country of origin.
He explained, “Irrespective of the payment card that a Ghanaian has, he can go to Nigeria and do any transaction as conveniently as if he were in Ghana and same goes for Nigerians when they are in Ghana.”
“It is the objective of GhIPSS to make payment faster, more accessible and more secured in order to facilitate business transactions,” he added.
He stated that the two institutions are now finalizing the procedures with the various banks in the two countries, “We are now agreeing on the mode of payment and settlement between central banks, that is whether payment should be done by the central banks or by the various individual commercial banks.”
The implementation of the Ghana-Nigeria interbank payment system would be preceded by the national switch in August, this year.
According to the CEO, its launch would significantly enhance the capabilities of the country’s financial services sector, as it will create a common platform for all the banks to perform their transactions.
“When this is operational, bank customers can use their ATM cards at any ATMs as against the current practice where only banks signed onto Visa enjoy that privilege in Ghana.”
The new national switch will accept any ATM card, thereby creating a lot of convenience for both the banks and their customers.
The CEO hinted that with the new system GhIPSS would also be able to switch information between the Visa and Mastercard platform and greatly enhance payments not only within Ghana but across West Africa.
He therefore urged the public to embrace the new developments in order to save time and cost.
The GhIPSS boss explained further that when the national switch becomes operational, the various mobile money services can switch transactions, maning that mobile money transfers can take place from a subscriber of one network to another network with ease.
France added that GhIPSS also hopes to use the national switch to link Ghana’s platform to that of the Francophone West African Monetary Zone (UEMOA).
The GhIPSS is a subsidiary of the Bank of Ghana, set up in 2007 and mandated to set up and operate the national switch incorporating a smartcard payment system and provision of smartcard services and in addition to managing the Cheque Truncation system.
It has also been mandated to operate an Automated Clearing House (ACH) for direct debit and credit and as well as a help desk to assist the payment system in general. GhIPSS’s responsibility is to manage, develop and promote these systems on an ongoing basis.
In a related development, government has secured a 7.5 million Euro funding to support GhIPSS to undertake the e-zwich rural branchless banking project, Finance Minister Dr. Kwabena Duffuor announced last week.
Speaking at the launch of the Ghana Automated Clearing House (GACH), an electronic funds transfer system, Dr. Duffuor said the money would allow GhIPSS implement a countrywide biometric system to ensure the quality delivery of financial services, especially to the unbanked and underbanked population.
"This technology will permit offline transaction and fingerprint recognition making it highly suitable for rural areas and for the uneducated people in our country," he said.
The GACH is expected to improve the bank payment systems’ infrastructure, by accelerating the pace of financial intermediation. In addition it supports safer and sound banking practices, towards improvements in the flow of commercial activity all over Ghana.
The facility is primarily an electronic funds transfer system and the preferred form of funds collection for organizations in developed and emerging economies.
Much of the activities surrounding the funds transfer take place among the participating banks and GhIPSS, which acts as the clearing house. With this system, an account holder can instruct a bank to make regular or recurring payments to a client or a firm on his or her behalf at determined dates.
Dr. Duffuor said the GACH would not only increase the payment alternatives in the economy but also provide greater choice for consumers and bank customers as well as enhance the speed and efficiency of the transfer and collection of funds among banks.
Dr. Kofi Wampah, Deputy Governor, Bank of Ghana, said the establishment of the GACH implied that businesses and the general public could now initiate automated payments through their banks without having to rely on a paper payment instrument.
"GACH will also increase the speed and safety of payment transactions as well as provide greater choice to players," he said.
However, Dr. Wampah urged the banks to make concerted efforts to increase the degree of awareness of electronic fund transfer services to overcome the slow pace of adoption of the systems and to also expand the reach of the services to the rural communities.
Fred France, the Chief Executive Officer of GhIPSS, said GhIPSS was in the process of implementing an open switch that would allow the processing of biometric, Europay, mastercard and other international and locally branded card transactions on behalf of banks in the country.
He said the new switch would also facilitate integration with other emerging payment systems such as internet payment gateways, mobile banking and telephone payment systems.
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