Rural banks roped into Ghana’s electronic payment platform

The Ghana Interbank Payment and Settlement Systems (GhIPSS) is offering switching services to the ARB Apex Bank to afford customers of rural banks access to the convenience enjoyed at universal banks.

Under the platform, the Rural and Community banks will be able to give their customers cards as well as introduce some electronic services and products.

GhIPSS is currently able to provide switching services to individual banks as well as Savings and Loans companies who want to avoid the initial huge capital outlay required to set up their own switches.

The move by GhIPSS is in line with the global trend where financial institutions are cutting back on their cost by sharing infrastructure with others through outsourcing.

Chief Executive Officer of GhIPSS, Archie Hesse, says financial institutions that are held back because of the cost of hosting their own switches can be assisted so that they do not lock up capital unduly.

The e-zwich system has been described as beneficial to the rural economy by the Managing Director of Cocoa Merchants Limited, the first cocoa buying company to use the e-zwich to pay farmers.

Nana Amo Adade Boamah has however advocated an increase in point of sale devices and e-zwich merchants to increase use of the electronic card system.

Head of Business Development at GhIPSS, Mary Dei Sarpong, says there is a window of opportunity for banks to access a financial facility to deploy e-zwich infrastructure.

The 7 million Euro revolving credit fund (RCF) is a loan agreement between KfW and the government of Ghana to provide support in the deployment of e-zwich in rural areas.

The GhIPSS is currently rolling out hybrid point of sale (POS) devices, designed to accept both e-zwich and all the local cards.

The devises are also configured to later accept Master and VISA cards on the gh-link platform.

Mrs. Dei Sarpong says 300 POS would be deployed in key merchant locations before end of year.

Story by Kofi Adu Domfeh