In accordance with the Payment Systems and Services Act, 2019 (Act 987), the Bank of Ghana (BoG), has authorized its first Dedicated Electronic Money Issuer license, to a local Financial Technology (Fintech) company, Zeepay Ghana Ltd.
This is part of efforts to deepen financial inclusion in the country, the Bank of Ghana announced in a statement on Thursday, April 30, 2020.
The Payment Systems and Services Act, 2019 (Act 987) is to provide the legal and regulatory framework for the orderly development of the payment system due to the emergence of new payment streams, institutions such as financial technology companies and the general acceptance of electronic money.
According to the BoG, the license allows Zeepay Ghana Ltd, to operate as a Dedicated Electronic Money Issuer, providing the ensuing services: Cash In, Cash Out, P2P Transfers (Peer to Peer), Bill Payments, Airtime Top-Up and International Money Transfer (IMT).
Last month, the Bank of Ghana (BOG) also granted Zeepay Ghana Ltd, license to operate a full Electronic Money Issuer service otherwise known as Mobile Money.
The approval will permit Zeepay to improve last-mile access to financial services for over 20 million Ghanaians while offering safety, convenience and significant cost savings.
The Bank of Ghana further reiterated its commitment to provide an enabling environment for Fintechs, industry players and other stakeholders, to operate in the payment services space in Ghana.
With the proliferation of fintechs in Ghana’s financial system and the impact of cyber fraud on the rise, the central bank introduced fintech licenses last year in a bid to boost innovation in the sector and to sanitize the financial sector.
In 2019, digital transactions accounted for the majority of mobile money flows. The ratio of digital to cash-based transactions increased by nearly 50 per cent since 2017 as a larger proportion of money enters and leaves the
system in digital form.
BoG directs fintechs and MoMo operators to acquire license by June 2020
Last year, the Bank of Ghana urged companies engaged in online or digital transactions including Mobile Money Operators and fintechs, to acquire their licenses to enable them operate in the electronic payment space by June 2020