strategic payments roadmap for ghana · initiatives 15 2.2.1. setting up a ghanaian payments...

Strategic Payments Roadmap for

Ghana

Prepared for Bank of Ghana

March 2014

1

Table of Contents

Contents

1.

Introduction 8

2.

Laying the Foundation 14

2.1. Introduction 14

2.2. Initiatives 15

2.2.1. Setting up a Ghanaian Payments Council 15

2.2.2. MFS Circular (Addendum to BB circular of 2008) 18

2.2.3. Pricing caps and display circular 19

2.2.4. Implement POS and acceptance guidelines 20

2.2.5. Enable TSA regime 21

2.2.6. Publish and maintain Cost of Cash index 22

2.2.7. Publish Payments newsletters 23

2.2.8. Pursue security certification to improve trust 23

2.2.9. Define a comprehensive stakeholder communication plan 24

2.2.10. Enable fraud and misuse reporting 26

2.2.11. Reach out to National Communications Authority for telco infrastructure 27

2.2.12. Stronger engagement with Ministry of Finance etc to secure buy-in 28

2.2.13. ePayments regulation / code 28

2.2.14. eMoney regulation 29

3.

Making Better Use of What is Already There 31


3.2. Initiatives 32

3.2.1. Reinvigorate mobile payments 32

3.2.2. Provide value added services on current schemes 34

3.2.3. Ensure all employees paid electronically 35

3.2.4. Other e-government initiatives 36

3.2.5. Develop and roll-out a hybrid or mobile Point Of Sale (M-POS) capability 37

3.2.6. POS deal negotiation (Dual readers including Contactless?) 39

3.2.7. ATM switching & Activity Monitoring 40

3.2.8. Supporting laws as per World Bank guidelines 40

3.2.9. E-payment only threshold 42

2

4.

Building for the Future 43


4.2. Initiatives 43

4.2.1. Launch instant payment scheme 43

4.2.2. Enable a bill pay scheme and supporting infrastructure 44

4.2.3. Host anti-fraud solution at GhIPSS 45

4.2.4. Enable a collaborative e-commerce payment method (e.g. iDeal / MyBank) 45

4.2.5. Implement penal pricing for cash & paper (Cashless Policy) 46

4.2.6. Launch direct debit scheme 48

4.2.7. Launch a multi-function Ghana card 48

4.2.8. EMV Cards 49

4.2.9. Participate in West African interlinking of EFTPOS/ATM switches 50

4.2.10. Participate in West African RTGS payment interlinking 51

4.2.11. Recapitalize and commercialize GhIPSS stake in tranches in favour of banks 52

5.

Innovation for 2019 and beyond 53


5.2. Initiatives 53

5.2.1. Multi-currency payments on mobile 53

5.2.2. IBAN / Numbering 53

5.2.3. Enable NFC payments 54

5.2.4. Account switching 55

5.2.5. ISO 20022 55

5.2.6. Separation of Scheme from Infrastructure 56

6.

A Strategic Roadmap 57


6.2. Quick wins by classification 60

6.3. Roadmap by timescale 62

Appendix 1: Methodology 65

Appendix 2: Abbreviations and Acronyms 66

Appendix 3: References 70

3

Strategic Payments Roadmap for Ghana

“The promotion of a cash-lite economy is a collective responsibility of all stakeholders involved in the

development of the payments eco-system.

This will require appropriate policies that promote investment and innovation as well as smart plans

from both the private and public sectors.

These, together with technical and financial support from development partners will unleash the full

potential of this country to enhance its overall development.”

Mr. Millison Narh, Deputy Governor, Bank of Ghana

Acknowledgements

We thank The Bank of Ghana and Ghana Interbank Payment and Settlement Systems Limited

(GhIPSS) for their cooperation in completing this report on a future roadmap for the country to 2019

and beyond.

We also thank the other stakeholders, namely the Banks, Telcos, Retailers, Corporate businesses,

and the Ghanaian Treasury for their valuable input and opinion in attending the June and December

2013 workshops and in completing the questionnaires, which alongside peer country experience have

been instrumental in shaping the report.

Finally, we must acknowledge Capgemini for playing a very important role in this project and in the

preparation of this report and the accompanying presentation deck.

Note - This report is supported by a separate detailed presentation deck as used in the December

workshops and other presentations and sources of data are also available should the reader wish to

read further.

4

Executive Summary

In summary, Ghana has the core payment systems infrastructure in place such as RTGS, ACH, ATM

and POS switches and cheque processing systems. It also has Mobile money capabilities through

Telco providers such as MTN and Airtel, Mobile which follow established practice similar to those in

countries such as Kenya and Tanzania. However cash is still very much the preferred means of

payment and yet we see cheque volumes increasing which should in fact be ACH transactions. POS

acceptance and hence cards usage is low.

These systems provide a foundation on which further enhancements and payment services can be

built to achieve the twin goals of a cash-lite economy and greater financial inclusion however the

fundamental issue is that payment systems in serving all stakeholders from consumers to the

government itself has not been subject to collective consultation and decision making by the same

cross-section of stakeholders. The result is that the benefits of electronic payments are not always

fully understood and thus do not get the ‘buy in’ of the stakeholders and consumers involved in the

usage of the services.

It is therefore fundamental that a suitable governance structure is formalised and that working groups

are created to particularly address specific focus areas under the umbrella of a Ghanaian Payments

council. In fact this was one area where there was a unanimous response by the survey group.

The brief of the payments council would be structured to cover matters such as standards, pricing,

determining priorities, scheme rules and legal drafting. The new initiatives would be managed by

working groups who are responsible for delivering the end to end roll out of any new initiative. It must

be noted, however, that these groups need to be sufficiently staffed and managed to meet their

commitments according to established project management principles. At present there is the risk of

the infrastructure being ready before stakeholders fully understand what it means to them and what is

required to implement.

Additionally, alongside the payments council there needs to be effective regulation and penalties for

non-compliance with any payments council directive. Clearly this needs a legal underpinning to be

effective.

We have heard of cases where for example a corporate can circumvent a limit for writing cheques by

writing several lower value cheques, or of delays in posting payments to a customer account to

benefit from float, or high merchant service fees for card payments all of which do not support a

change in payments behaviour. It is recommended therefore that there is greater transparency in

pricing and that the payments council consider pricing caps and general principles to be adopted in

pricing e.g. processing a debit card should be no more than a cheque(and ideally less) and domestic

cheque pricing be based on a flat fee rather than ad-valorem. Furthermore, as with the EU Payment

services directive, D+1 should be considered for payments as the time between a debit being applied

to the originator’s account and the credit being posted to that of the beneficiary.

We did compare the wholesale pricing of payments in terms of what GhIPSS charge banks and found

that fees were in line with other peer countries but bank customer fees did appear to have a high

markup.

Not surprisingly feedback from bank customers indicated that bank fees were too high yet the banks

felt that they were at the right level. Nevertheless this is certainly a topic to be discussed at the

payments council as to what is and what isn’t a reasonable fee and margin based on processing

payments.

‘Incentives’ should also be applied to encourage different behaviour in terms of a reduction of fees, a

fee surcharge or a form of loyalty scheme depending on the desired outcome. In this sense, payment

5

made to the RTGS could be at a lower fee depending on the time of day as in India to flatten intraday

liquidity ‘spikes’ or penal fees applied for cash collections over a certain limit as in Nigeria. We have

also recommended that a cost of cash index is maintained to communicate the true cost of cash to

support further the value of electronic payments.

Kenya’s MPESA is well known as a great success especially in terms of greater financial inclusion

and similar initiatives in Ghana have the potential to be equally successful in achieving that objective.

However the growth has been slow. The view of Telcos in Ghana is that the principal issue is not that

of awareness but of education. If consumers are able to see how easy it is to use this service through

hands on experience and demonstrations and as a result understand the convenience and security it

brings, greater usage would ensue. Peer experience is to be encouraged and marketing campaigns

could perhaps use well known public figures in TV and newspaper advertising.

Lack of Education, banking facilities for the unbanked/illiterate and lack of trust in e-payments were

the principal barriers to a drive from cash and greater financial inclusion. A mobile money agenda is

seen as a critical element in the Ghana payments strategy.

A greater perhaps loosely coupled relationship between the national telecommunications agency and

the Bank of Ghana is essential, and all forms of mobile payments should be subject to BoG approval

with respect to Payment services provision as well as the NCA. Financial and non-financial (i.e.

airtime) transactions should also be segregated to keep a clear dividing line between m-money and

traditional Telco billing. BoG announced at the December meeting that this legislation was currently

being drafted and would be in place in early 2014.

The report also recommends that all activities by BoG be publicised and as is good advertising

practice, the communications should be consistent and continual around any specific campaigns. A

Payments council newsletter is recommended as one such vehicle and we believe that the more that

usage is endorsed by trusted parties or peer groups, the more interest and usage will be the result.

The next step is to make better usage of what is already available. There are two parts to this; One is

in terms of re-launching and invigorating current services through specific campaigns such as re-

launching mobile payments using education and publicity on the benefits such as convenience and

security. The other is to provide value added services and improve penetration of e-payments

acceptance and the usage of e-payments.

BoG have also considered purchasing POS terminals to encourage points of acceptance but it is

fundamental that should this proceed, such terminals would need to be ‘future proofed’ by supporting

mobile P2P type payments. The market ‘charcoal seller’ is a case in point where a mobile P2P

payments capability would apply without the need for an traditional POS. Feedback was mixed with

regard to negotiating pricing for POS terminals with suppliers to obtain bulk discounts but the

experience of Nigeria suggests that this makes commercial sense.

As an example of making better use of what is there already we believe that direct corporate access

to the ACH under the sponsorship of their relationship bank will be beneficial in terms of easier

payment of salaries and would allow smaller banks to have access to central clearing under an

agency arrangement. Several software suppliers could provide this and GhIPSS could operate a

service bureau. This would avoid the practice of a large employer making RTGS payments and banks

having to manually post salaries to the appropriate account.

The next stage would be to bring in new capabilities that form the basis for the future where the world

is moving rapidly to real time, instant everything and the choice for any payment method at any time

and any location is provided i.e. complete flexibility. These points are discussed further in the World

Payments Report 2013 by Capgemini and RBS as are the trends for payments to reflect better in the

end to end businesses of corporate industry, merchants and consumer lifestyle. This also brings in an

6

additional focus on online internet purchasing as the market matures in terms of broadband

availability in homes especially in the metropolitan areas.

We note that real time payments is being planned for a first half of 2014 roll out, and this will further

support the electronic payments agenda and support P2P as well as C2B and B2B payments though

it may dilute existing ACH volumes and care needs to be taken in the timing of its introduction. In

addition to be successful, scheme rules need to be established and understood by stakeholders, and

the bank’s systems need to be capable of real time rather than batch processing and of real time AML

checks. Compared to a 3-day cycle, there is no recourse to recall if a mistake is made or a suspected

fraudulent transaction. Real time or instant payments are certainly a precursor to collaborative e-

commerce methods such as the Dutch I-deal payment method and the UK ZAPP initiative and a more

convenient method of payment than cards which in turn minimises the incidence of incomplete

purchases.

In this stage there is the opportunity with a more established infrastructure to introduce loyalty

products such as cash back or points for financial transactions to incentivise further the digital

agenda.

The focus also moves into the realms of inter-country or international payments with schemes such as

WAMZ in West Africa interlinking national RTGS similar to those that have started in East Africa and

out of South Africa. These are designed to simplify and bring efficiencies to international trade and the

supply chain from a small importer buying goods in China to the large multinational oil companies.

The same concept can also be applied to linking ATM/POS switches and enabling a Ghanaian visitor

needing to withdraw cash from a local ATM in Togo without recourse to the black market or carrying a

wad of US dollars.

Further innovation for 2019 and beyond is more of a case of streamlining or fine tuning what has gone

before regarding the organisation in terms of ownership of GhIPSS and separating the scheme from

processing and driving a wider usage of standards such as ISO20022. This stage or classification

covering restructuring and standards can therefore be considered as fine tuning what has been

achieved in previous years.

Ultimately the recommendations and decisions will be made by the BoG and Payments council and

the roadmap may change from that provided herein.

That said, all in all, this is an exciting time for Ghana and from the workshops there is a clear

willingness by the stakeholders to collaborate and work together for the common good of the country.

There are number of quick wins where the impact is high and ease of implementation medium to high

and these should be started to demonstrate commitment in setting the firm foundation for the journey.

These are provided in section 6 of this report.

There should also be a flagship initiative that really demonstrates to Ghanaians and their neighbours

that innovation is not only achievable but operational and as in peer countries a ‘carrot and stick

approach will be needed together with a joint approach to m-payments with the Telcos operating in

the country. It would also be beneficial if a case similar in impact to mobile public transport payments

in Brazil were to be delivered and on the agenda, though given the diversity of transport operators

this exact programme may be difficult to achieve in Ghana.

Overall, the Bank of Ghana and GhIPSS should set specific goals for reducing cash and increasing

financial inclusion and monitor performance against those targets in order to assess the impact of

specific actions. The journey will be one of continuous steady improvement which given the will of the

various stakeholders to succeed will be successful. The following quotation sums up that view very

well.

7

Exhibit 1: T-map roadmap which describes the initiatives by classification and timeline

BoG : Target state

2014 2015

La

yin

g t

he

Fo

un

da

tio

n

Building the future

2019 & beyond

Ma

kin

g b

ett

er

use

of

wh

at

is a

lre

ad

y t

he

re

Innovation for 2019 and beyond

2.2.2 MFS Circular

2.2.6 Cost of cash Index

2.2.7 Publish payments newsletters

2.2.11 NCA Reach out

3.2.1Reinvigorate mobile payments

3.2.2 VAS on current schemes

4.2.1 Instant Payment scheme

5.2.2IBAN / Numbering

5.2.3 NFC payments

5.2.4 Account Switching

5.2.5 ISO 20022

5.2.6Separation of Scheme from Infrastructure

2.2.1 Setup Ghanaian Payments Council

2.2.3 Pricing caps and display circular

2.2.4 PoS and acceptance guidelines

2.2.5 Enable TSA regime

2.2.8 Pursue security certification to improve trust

2.2.9 Stakeholder communication plan

2.2.10 Fraud & misuse reporting

2.2.12 MoFBuy-in

2.2.13 ePaymentsregulation / code

2.2.14 eMoneyregulation

3.2.3 electronic salary payments

3.2.4 eGovt. Initiatives

3.2.5 hybrid / mPoScapability

3.2.6 PoS deal negotiation

3.2.7 ATM & Activity

monitoring

4.2.8 EMV Cards

3.2.8 Supporting laws as per World Bank

guidelines

3.2.9 epaymentonly threshold

4.2.2 Bill payment scheme

4.2.3 Anti-fraud solution at GhIPSS

4.2.4 eCommerce/ ebanking gateway

4.2.5 Cashless policy

4.2.7 Multi-function Ghana card

4.2.6 Re-visit direct debit scheme

4.2.9 West African interlinking of

EFTPOS/ATM switches 4.2.10 West African RTGS payment interlinking

5.2.1Multi-currency mobile

4.2.11 Recapitalize and commercialize GhIPSS

stake

2016-18

8

1. Introduction

The Payments systems act of 2003 empowered the Bank of Ghana (BoG) to play a pivotal

role in establishing, operating and promoting payments systems (among other things) in

Ghana.

BoG then established Ghana Interbank Payment and Settlement Systems Limited (GhIPSS)

which owns and operates e-payments schemes and infrastructure within the country and

many of these infrastructures have been established within the 2008-2012 window.

Exhibit 2: Payment systems landscape in Ghana: GhIPSS is the principal payments

infrastructure body in Ghana, anchoring the payments transformation landscape as part of the

Bank of Ghana

As such Ghana has the fundamental baseline infrastructure in place to support further

enhancements by offering:

Real Time Gross Settlement system for high value payments and settlements

An ACH for direct credits/credit transfers and direct debits – G-ACH

An 3 day and same day cheque clearing mechanism – Gh-CCC

CardsE-Payments ‘Cross / X’-Border

Mobile / Wallets

Prepaid / Closed loop

Cash & Slow

PaymentsDirect

Credit

Cash Debit

(ATM)

Cheques Debit

(POS)

Credit Remittan

ces

SWIFT

e-zwich (National Switch)

CCC*

* CCC - Cheque codeline clearing i.e. cheque truncation system.

$ GIS - Ghana Interbank Settlement System - RTGS. This uses SWIFT FIN Y Copy.

gh-link TM

Tra

diti

onal P

roducts

Em

erg

ing

Pro

du

cts

Sika card

Mondex card

RTGSDirect

Debit

GACH

GIS$

GhIPSS

Bill Pay and E-invoicing

Mobile Fin Services

Aitel

Tigo

MTN

9

ATM interchange enabling cash withdrawal from any ATM with a valid debit card – Gh-

LINK

A national POS acquiring service for merchants – Ezwitch

Thus far there have been two distinct waves of development of the national payments

infrastructure which have established the baseline systems but some specific initiatives are

planned for 2014 and further value added initiatives will follow as part of the short to medium

term (2014-2020) roadmap.

Exhibit 3: The payment systems evolution in Ghana: Bank of Ghana has overseen 2 waves of

development and could trigger the next wave to achieve twin objectives of inclusion and

efficient payments (lower cost of payments)

However, even with this infrastructure baseline, Ghana is very much a cash society and as

shown in the following exhibit, cheque usage is rising against a global trend in cheque

reduction1 and e/m-money initiatives are not on a steep growth trajectory despite growing

mobile phone ownership.

1 World Payments Report 2013, Capgemini and RBS

Payments 2.0 (Wave 2)Payments 1.0 (Wave 1)

Ch

eq

ue

HV

PS

LV

PS

Sw

itch

& C

ard

2002

2013

October,2002 - GIS

(RTGS) operational

2008-

E-Zwich (proprietary banking

and retail payment system)

200820001998 2004

2010

20122006

2009/10 -

CCC (Cheque

Truncation)

Dec,2010 to Aug 2011

a. CT (ACH Direct Credit)

b. DD (ACH Direct Debit)

Aug,2012 -

gh-link (Switch)

1996

1997 -

MICR (Cheque clearing)

Cash

& P

ap

er

Paym

en

tsN

on

-C

ash

Paym

en

ts

Cash

Careful considerations of options and their fitment to Ghana’s context

is important to define Payments 3.0 (wave 3)

10

Exhibit 4: Growth in payment product types: While all payment products are demonstrating

growth, paper payments are still demonstrating healthy growth

In general Ghana is not as advanced in its move from cash as say Nigeria or in achieving

financial inclusion through the digital ecosystem as in say Kenya.

In addition, whilst this infrastructure is in place, there are specific capabilities, scheme rules

and monitoring that are not in place and could enable increased usage if provided. Generally

the benefits of e-transactions are not fully understood and cash is still ‘king’.

It should be noted that a number of Telcos such as MTN have set up schemes similar to

MPESA in Kenya, yet these have not achieved the same level of penetration as Kenya or

Tanzania.

Product Type CAGR

Cash (M1, narrow Money)

Cheques 4.6% (09-12)

ACH 75.78 (2011-12)

eZwich 68.84% (2008-12)

Gh-Link9x growth (H2,2012

Vs H1,2013)

GIS (Customer Account)

ChequeUsage dwarfs ACH usage

6.7

1m

2012

2.7

1m

2013 (Jan-

May)

1.3

3m

0.6

9m

CCC

ACH

While non-cash payments have demonstrated very high growth rates (on low base),

the acceleration of epayments is a must for achieving the twin objectives of efficient payments with inclusion (payments reachability)

11

Exhibit 5: Ghana as a lively economy and ‘Payments’ can help stimulate and sustain economic

progress

Similarly the benefits to merchants, corporate businesses, government departments (such

as the Ministry of Finance), and consumers from the e-agenda is not well understood as it

might be.

As shown in exhibit 4, Ghana is a lively economy and an effective and enhanced payment

systems ecosystem is viewed as essential to stimulating and sustaining economic progress.

With this in mind the Bank of Ghana asked Standard Chartered Bank to help define a

roadmap up to 2019 and beyond which would enable the twin and related objectives of

greater financial inclusion and a significant shift from cash payments to electronic/digital

payments, to be achieved within a ‘cash-lite’ economy.

This represented some specific challenges and issues to overcome in defining the barriers to

e-payments growth and to determine how to engage the demand and supply side

stakeholders to achieve greater usage with respect to the usage of the specific levers of (a

combination thereof) - law, commercials, governance, defining broad solutions / initiatives

that can be implemented to allow rapid epayments uptake.

In addition whilst the principal focus is intra-Ghana, the Bank of Ghana also seeks to

improve international payments to support the commercial transactions of Ghanaian

businesses with neighboring West African states and principal trading countries such as

China. Enabling faster turnaround time (TAT) and reduction in carrying cash for payments

are seen as specific objectives in this area.

This report will serve to provide the following:

Market Indicators

Local socio economic analysis / econometric indicators

Population 25.37(Source : World Bank 2012)

Bank account penetration

29(People with formal Account)(Source : Global Financial Inclusion (Global Findex) Database 2011)

Per Capita GDP $40.71bn (Source : World Bank 2012)

PoS density 4.16per 100,000 residents(Source : World Bank,2009)

GDP growth CAGR

7.59% CAGR(8%-’08; 4%-’09;8%-’10; 15%-’11; 8%-’12)(Source : World Bank 2012)

Banked Vs Unbanked Population

>80%(Source : http://www.pwc.com/en_gh/gh/pdf/ghana-banking-survey-2011.pdf)

Internet usage 40.7%(10,564,180 subscribers)at the end of August, 2013

(Source : http://www.nca.org.gh/)

Mobile phone usage >100% (27.51m Aug 2013)

mobile voice telephony connections

34.5% - Mobile data subscription

(Source : http://www.nca.org.gh/)

Literacy rate 71.5%age 15 and over can read and writeSource : CIA World Fact Book, 2010 census

Over the last decade, the continent had become the most exciting global economic story with Ghana

ranking 14th among the top 20 fastest emerging economies in the world - The Economist

12

Define the roadmap (sequencing and timeline) over which the above can be achieved.

Enable the above through a combination of data analysis, stakeholder connect (selected

sample) and peer group analysis.

A definition of schemes, change management & culture to ‘enable’ this change?

Standard Chartered Bank have been working closely with Capgemini—a strategic consulting

and services provider to the bank—together with GhIPSS and representatives of the Bank of

Ghana to create the content of this report. The source of the data in this report has been

from primary research through several stakeholder workshops, questionnaires and

interviews and input from GhIPSS/Bank of Ghana, and secondary research through

available sources to determine peer country practice and general best practices deployed.

The peer countries used were Kenya, Nigeria, Kenya, South Africa and Tanzania.

Exhibit 6: Potentially, there are 4 broad scenarios of evolution for e-payments in Ghana

Various scenarios were determined and validated to create the questionnaires used and a

full deck of slides were produced to define the whole study end to end, which were used to

solicit views and opinion during the stakeholder workshops.

In approaching this study the various approaches to rolling out an e-payments strategy were

analyzed. Of these the Rapid uptake model was viewed as the most appropriate to be used

for Ghana.

Demand Pull

A sizable group of demand side

stakeholders expects significant

benefits from the use of epayments.

These stakeholders will force their

banks to start offering e- payment

products

Rapid uptake

A collaborative and sequenced

approach that delivers Visibility

(Suppliers) and Value to (Buyers /

Demand) that enables targeted e-

payments growth through combination

of supply enablement and demand

stimulation.

Supply Push

Newer schemes / products are defined.

Newer players with connectivity, reach

are enabled to deliver services (incl.

Legal approval). Players proactively

push epayments to reduce ‘cost of

payments’ by rewarding transition away

from loss leader products.

Req

uest ep

aym

ents

p

rod

ucts

Relu

cta

nt

to e

paym

ents

p

rod

ucts

De

ma

nd

sid

e

ep

ay

men

ts s

tra

teg

y

Supply side epayments strategy

Reactive and patchy Pro-active and comprehensive

Snail paced progress

Broad Infrastructure exists. Paper

payments still growing. Non-cash

payments growing but reach still low (i.e.

Unbanked) and not cannibalising the

demand for (in-efficient) paper payments.

This situation not accretive to policy

decisions and for accelerating /

supporting economic agenda.

We observe that Ghana is a ‘two-paced’ market : while the ‘banked’ need

awareness for uptake, the ‘unbanked’ need alternative for rapid inclusion into payments world.

13

How to read this document

Following this introduction, this document proceeds to discuss the various initiatives that were

identified as having strategic importance for Ghana. The initiatives are discussed in various chapters

aimed at improving Ghana’s payments landscape: Laying the Foundation (chapter 2), Making Better

Use of What Is Already There (chapter 3), Building for the future (chapter 4), and Innovating for 2019

and beyond (chapter 5).

Each of the initiatives discussed in the above chapters can be further classified as being or pertaining

to a different aspect of the payments infrastructure:

Governance aspects: pertaining to regulatory (pertaining to the legal underpinnings necessary for

payments to function within) industry and government bodies and their relation to each other with

respect to national payments bodies.

Technical aspects: pertaining to initiatives aimed at setting up or improving the present-day

technical infrastructure for carrying out payments

Scheme aspects:

Change Management aspects

Commercial aspects

The document ends with an overall overview of the strategic payments roadmap for Ghana. Quick

wins are identified and the various initiatives are plotted against a timeline.

14

2. Laying the Foundation

2.1. Introduction

Ghana has a good payments infrastructure foundation, in fact many initiatives and steps are

already present, however there is clearly scope for improvement. The foundation is clearly

infrastructure based and GhIPSS already has plans for enhanced or new infrastructure for

the country supporting new payment methods.

What is missing is the alignment and support of the stakeholders (government departments,

Banks, commercial businesses, merchants, consumers and allied organizations such as

Telcos). The risk at present is that new payment schemes can be introduced before the

target stakeholders understand the benefits to them or have the resources and budgets to

implement them.

Clearly high MSC’s for merchant POS transactions inhibiting widespread acceptance of

cards or the case of the GHS 100 for clearing a cheque or rural banks not having access to

all payment systems are some of the issues being cited today.

In cases of disputes between banks over say a return of funds from a fraudulent cheque the

Bank of Ghana will provide an arbitration committee but this is not a formalized and

recognized department to conduct binding arbitration.

In general, a government will lay down some high level political principles such as making

sure there is an even-playing field and access to payment systems by all banks, that there

should be principles of fairness in terms of pricing and fees, and for greater if not full

inclusion of its citizens into financial services.

Following on from this there would be a super-steering committee of stakeholders to

determine what is needed and the scheme rules, standards and operating principles for

introducing new or enhanced payment services. This is typically called a ‘Payments council’

and the critical success factor is to have a broad church of membership which in the past

has been primarily made up of (large) banks.

It is also imperative that whatever principles, schemes and rules are agreed, these need to

be monitored and there needs to be penalties for non-compliance. Some form of regulatory

oversight committee should be set up with a dual role of arbiter in the case of disputes.

As with all foundations on possible soft ground there needs to be a strong underpinning of a

legal framework drafted by the Bank of Ghana. However as legal changes can take time, our

recommendation is that new initiatives are rolled out in parallel with the legal process.

It was clear from the workshops and questionnaires that there was overwhelming support for

a formal governance structure supported by new financial laws to provide a solid foundation

on which to build. The case of m-money provision is a case in point where new agents are

15

approved by the NCA, but should also be approved by the Bank of Ghana as Payment

services providers, thus needing greater cooperation between Telcos and the Bank of

Ghana.

Having set up these structures it is essential that there is a broader communications and

implementation policy to ‘inform, enthuse and educate’ all participants in the payments

ecosystem and advise them what they need to do and when in order to reap the benefits of a

‘cash-lite’ country.

With a solid Governance and legal structure and generic communications policy and process

for the implementation of new schemes, we believe there will be a solid foundation on which

to build and this is a priority short term deliverable in the roadmap.

2.2. Initiatives

2.2.1. Setting up a Ghanaian Payments Council

Initiative Category Governance & Legal Ease of Implementation Medium

Impact High Proposed Timelines Near term (H1 2014)

Current State

Payments governance is driven primarily by Bank of

Ghana together with delivery arm - GhIPSS (wholly

owned by BoG).

Bank of Ghana drives the broad objectives of

efficiency and Inclusion through its policies and

oversight.

Peer Practice

Tanzania: Established NPSC (National Payments

System Council) that helps direct NPS (National

Payments System).

Nigeria: Structured 10 working groups under CBN

though not labeled as a payments council.

India: Held under the aegis of NPCI, The payments

governing body.

Australia: Joint consultation by RBA and APCA

launched in October, 2013 to form Australian

Payments Council.

Voice of Stakeholder

Q: We asked stakeholders at the workshop if the BoG

should develop and anchor a payments governance

body with multiple/wide stakeholder participation (by

whatever name called – Council, Committee, Group

etc)?

A: An overwhelming, 100% of the respondents

‘Strongly agreed’

There was also a strong support for the appointment of

an independent payments ombudsman.

Actions/

Details

A Payments Council is the prime means by which many countries and regions ensure diverse

stakeholder involvement to evolve decisions and consensus on the direction and details of the

payments industry. It also ensures ‘alignment’ for the benefit of end customer by smoothening

out narrow interests that may arise from time to time.

The Ghanaian Payments Council could be formed with, including but not limited to, following

aspects :

Objectives : Primary authority to Define, Design and Drive the realization of Roadmap

through collaborative decision making, and alignment with national government objectives.

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

16

Legal Structure : Set up as an association or foundation with its own articles of association

Participants: Suggested participants can be GhIPSS, Banks, FIs, Telcos’, Stock Exchange,

Major Corporates, Large Merchants, Retails consumers. The steering committee however

would be a smaller group headed by the Governor of the Central Bank with decision making

authority.

Sub-committees : To ensure focus and adding ‘details’ to the direction, we recommend to

constitute, at a minimum, five committees – Operations, Legal, Standards, Automation,

Technology and pricing.

Funding: Institutional Members to the council could pay a yearly membership fee with which

the various activities of the council can be supported.

See Exhibit 6: Proposed structure of the Ghanaian Payments Council

Rationale

We believe the diversity in Ghana payments system will be well addressed with the

appointment of a formal payments council and the council would be the rightful owner of the

strategic payments roadmap.

17

Exhibit 7: Proposed structure of the Ghanaian Payments Council

18

2.2.2. MFS Circular (Addendum to BB circular of 2008)

Initiative Category Governance & Legal Ease of Implementation High

Impact High Proposed Timelines 2014

Current State

BoG issued the ‘Branchless Banking’ guidelines

under the notice- BG/GOV/SEC/2008/21 in 2008

(along with an addendum).

It provided the basis for mobile financial services in

Ghana. The details included: permitted model (many

to many), permissible activities, KYC, anti-money

laundering, use of agents, agent due diligence,

agreements etc.

The agency model is in place due to many Ghanaians not having a bank account due to various infrastructure and social reasons.

Many Telco’s are providing mobile payment facilities

but challenges exist :

─ Interlinking of payments between operators

─ Lack of education on benefits

─ Slow growth

Peer Practice

Kenya: CBK (Central Bank of Kenya) engaged with

CCK (Communications commission of Kenya)

where CCK deferred to CBK specifics of M-PESA

oversight.

Tanzania : MoU with Telecom regulator (between

Bank of Tanzania and Tanzania Communications

regulatory authority (TCRA)


Q: We asked stakeholders by when BoG should

enable agent based mobile financial services.

A: 70% of the respondents agreed that it should enable

within 2014.

Actions/

Details

Mobile financial services have proven to be the single most important scheme / product to

drive inclusive growth in African markets. See the following exhibit on impact of mobile

financial services in Tanzania.

We recommend :

A re-visit of these guidelines to publish additional guidelines that would trigger greater

adoption. It is critical that Ghanaians have a bank account or mobile money account to

credit and debit if cash usage and financial inclusion objectives are to be met.

Engage with NCA to push for aggressive uptake (while balancing oversight)

Rationale Calibration of this scheme is very important for BoG to achieve its goal of ‘Financial

Inclusion’.

Enable (agent based) mobile financial services

Near Term (6months)

Short Term (2014)

Medium Term (2015-17)

19

Exhibit 8: Tanzania volumetric analysis demonstrates that traditional products plateau /

decelerate over time

2.2.3. Pricing caps and display circular

Initiative Category Governance & Legal Ease of Implementation Medium

Impact Medium Proposed Timelines H1 2014

Current State

Payments governance is driven primarily by Bank of

Ghana together with delivery arm - GhIPSS (wholly

owned by BoG).

Bank of Ghana drives the broad objectives of

efficiency and Inclusion through its policies and

oversight.

Peer Practice

Kenya & Tanzania: Provide EFT debit, credit,

cheque clearing as ‘free services.

India: RBI has mandated tiered maximum fees for

RTGS payments.

Voice of Stakeholder (Pricing Caps)

Q: We asked the regulatory stakeholders if payments

pricing should be regulated at a product / scheme

level?

A: An Overwhelming, 100% of the responded agreed.

While ‘agent enabled’ mobile financial services & SMS banking transactions rose rapidly.

0

1

2

3

4

5

6

2005 2006 2007 2008 2009 2010 2011

Vo

lum

es

(in M

illio

ns)

TISS (RTGS) Cheques EFT (ACH) POS Intenet banking

0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011

Vo

lum

es

(in M

illio

ns)

ATM Mobile Fin Services SMS Banking

CAGR

ATM- 50.85%(from ‘05)

SMS - 148.49% (from ‘06)

Mobile FS - 326.88% (since ‘08)

CAGR

TISS - 25.49% (from ‘05)

Cheques - 1.82% (from’05)

EFT - 31.85% (from’06)

POS - 71.14% (from’06)

Internet - 44.27% (from ’06)

Scheme Details

Cheques

CAGR restricted to under 2%. While volume held up, processing value reduced by 50% demonstrating higher value payments taking the ‘e-route’.

POS

Continued rise in PoS transactions at 71% CAGR can be attributed to higher POS penetration in Tanzania at 11/100,000 Vs 4/100,000 in Ghana

Source : World Bank, 2009

- Volumes handled (Traditional products) - - Volumes handled (High Growth products) -

Scheme Details

Mobile Fin Services

During the period from 2008 to 2011, number of agents rose from 2,757 (2008) to 83,795 (2011) forming the foundation of the 325%+ explosive growth.

Source : http://www.bot-tz.org/PaymentSystem/statistics.asp , Capgemini Analysis

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

20

Voice of Stakeholder (Display)

Q: We asked the stakeholders if payments products

and pricing should be displayed in the branch?

A: More than 77% of the respondents agreed.

Voice of Stakeholder (Level of Pricing)

Q: We asked stakeholders if payments were fairly

priced?

A: While more than 60% respondents felt that

payments were fairly priced, about 29% of the

respondents felt that payments were overpriced. In an

earlier survey by BoG, there is evidence of

overcharging by some participants.

Actions/

Details

We recommend BoG to pass / issue a circular mandating both display of payment product

pricing and also cap pricing at a reasonable level. We recommend the ‘pricing’ committee in the

Payment council as the appropriate forum to recommend the details at a product level.

The intention is not to stifle competition and micro-manage payment services providers and

banks, but to instill regulation that is based on fairness and transparency for consumers and

business alike. Accepted practice is that domestic cheques should be charged at a flat fee, and

debit cards similarly rather than ad-valorem.

Rationale

Improves awareness

Standardizes pricing (removes ad hoc / exorbitant pricing)

Sets-up the expectation of participants for pricing caps under a non-cash policy that will be

introduced subsequently.

2.2.4. Implement POS and acceptance guidelines

Initiative Category Legal Ease of Implementation High

Impact Medium to High Proposed Timelines 2014

Current State

The PoS infrastructure is linked to the e-zwich

scheme.

ATM cards of banks exclusively work on ATMs

only.

Hybrid PoS, which accepts both e-zwich and

normal ATM cards are undergoing certification

and will be rolled-out shortly.

Commercial banks have contracted with Visa and

MasterCard to provide PoS solutions to their

merchant clients.

Peer Practice

Nigeria : Specific POS guidelines with minimum

definition of minimum standards, stakeholder and

roles and responsibilities definitions, settlement, fees

and charges limits, POS Terminal specifications (along

with optional services and timelines for compliance.

Appointment of NIBSS as the (PTSA - Payment

terminal service aggregator). NIBSS is responsible for

the certification and re-certification of all payment

terminals and applications on behalf of the Industry

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

a. Fairly priced

b. Overpriced

c. Underpriced

d. Others

___________

21


Q: We asked stakeholders if BoG should move to

enable rapid PoS penetration - in the near, medium

or long term?

A: 89% of the respondents agreed that this scheme

should be launched in the short term.

Actions/ Details We recommend the issuance of specific POS guidelines to trigger POS penetration

beyond the e-zwich and ATM wave in line with Nigerian benchmark.

Rationale Creates framework for players to choose role in POS transformation.

Creates a level playing field.

2.2.5. Enable TSA regime

Initiative Category Governance & Legal Ease of Implementation Low

Impact Medium Proposed Timelines 2014

Current State

Republic of Ghana is in early stages of treasury

management / centralization.

Peer Practice

Leading countries like USA, UK, France, China,

Philippines have successfully deployed TSA /

centralization models.

India: While accredited commercials banks act as

tier 1, RBI acts as the tier 2 to enable the TSA for

Government of India.

Nigeria: The initiative was championed by the

Federal Ministry of Finance with the office of the

accountant- general of the federation serving as the

implementing agency, in active collaboration with

the Central Bank of Nigeria (CBN) in 2012.

Voice of Stakeholder (General Laws)

Q: We asked stakeholders to rate current regulations

support BoG to play an active role in Government

payments and finances like a) enabling (G2X - Govt to

Consumer, business etc) payments b) enabling TSA

(Treasury Single Account) structures etc?

A: There is clear view from the respondents that

initiatives like TSA are required.

Actions/

Details

We recommend alignment with Ministry of Finance and other units of the Government of

Republic of Ghana to enable Treasury centralization / TSA to reap efficiencies of visibility,

lower cash balances, limited borrowing etc. Such an approach would also streamline receipts

and payments from the treasury.

Improve POS penetration rapidly

Near Term (6months)

Short Term (2014)


Long Term (beyond

2017)

a. Yes, Fully support

b. Yes, party support

c. No - Need new

amendment / approval

22

Rationale

The Government can be an ‘early adopter’ of e-payments thus triggering adoption by other

stakeholders.

Savings triggered from efficiency can be invested in improvement of the Payments systems

and Banking sector as a whole.

2.2.6. Publish and maintain Cost of Cash index

Initiative Category Change Management Ease of Implementation High

Impact High Proposed Timelines H1 2014

Current State

Cash is a dominant payment instrument in Ghana.

Ghana also faced currency ‘re-denomination’

exercises that cost economy. It is estimated that the

re-denomination in 2007 cost USD 66.2m (USD

94.8m in 2003).

If savings are triggered through lower cash usage,

the same can be channeled by the Government for

productive uses.

Peer Practice

Nigeria : Used a clear ‘Cost of Cash’ Index as a

precursor to the ‘Cashless Nigeria’ initiative

Both in the UK and EU, various studies have been

commissioned that quantify the ‘cost of cash’ to rally

public opinion to migrate to low cost payment

products.


Q: We asked stakeholders if BoG should Publish and

maintain a ‘Cost of Cash Index’ for Ghana as a whole?

A: More than 85% of the respondents agreed to the

idea of publishing a ‘cost of cash’ index.

Actions/

Details

We recommend immediate publication of ‘Cost of Cash’ index with a minimum coverage of :

Cash in Transit

Cost of processing

Vault Management

Counterfeit losses

The index should also track the M1 metric (narrow money) and improvements should be

published at least once a year.

Rationale

Prepares consumers for a ‘Cashless Ghana’ initiative.

Can enable savings for payments service providers and for Ghanaian economy as a whole.

Enables continued support for other e-payment initiatives while capturing ‘early benefits

measurement’ (low hanging fruits).

Provides a visible metric that can be tracked by various stakeholders. Such metric would also

be picked up by media creating further awareness and acceptance (lower resistance to

change)

Publish and maintain a ‘Cost of Cash Index’ for Ghana as a whole ?

1-Don’t Agree

2-Neutral

3 -Agree

4. Strongly Agree

23

2.2.7. Publish Payments newsletters


Impact Medium Proposed Timelines H1 2014

Current State

There are no payments newsletters published today

by BoG.

Peer Practice

UK: The UK Payments council publishes a Quarterly

newsletter ‘Communique’.

India: NPCI publishes e-newsletter at regular

intervals.

Australia: ‘Payments Monitor’ a quarterly newsletter

is published by APCA (Australian Payments and

Clearing Association).

Nigeria: Used a newsletter approach to drive the

‘cashless’ initiative.


Q: We asked stakeholders if BoG should publish a

regular payments newsletter?

A: 90% of the respondents agreed.

Actions/

Details

We recommend a combined statistics and policy / payments plan progress based newsletter to

be published on a quarterly basis (under BoG / Payments Council).The same should be made

available to all payments industry participants (push) and at websites of BoG and GhIPSS (pull).

Rationale

Enables Systematic communication

Enables reachability to wider audience and triggers discussion / debate

Conveys progress and helps drive advocacy.

2.2.8. Pursue security certification to improve trust

Initiative Category Change Management Ease of Implementation Low

Impact Medium to High Proposed Timelines 2014-2015

Current State

While BoG / GhIPSS deploy prudent practices,

the systems are not yet PCI-DSS certified.

Peer Practice

EU: EBA Clearing pursued ISO 27001 to improve public

trust in information systems.

South Africa: Bankserv is PCI-compliant and in 2012

achieved PCI 2.0 compliance.

Nigeria: NIBSS is PCI DSS compliant

A regular ‘Payments council newsletter ?

1-Don’t Agree

2-Neutral

3 -Agree

4. Strongly Agree

24


Q: We asked stakeholders if BoG/GhIPSS should

undertake PCI-DSS Compliance?



Q: We asked stakeholders if BoG/ GhIPSS should

undertake ISO security compliance and audits?


Actions/

Details

We recommend BoG / GhIPSS to undertake PCI certification and validate the same on an

annual basis.

We recommend that any card based payments for income tax, corporation tax, VAT

Ghanaian equivalents have their card details stored so as to enable any overpayments or

refunds to be paid back via the same method as was originally used. This will allow card

scheme rules to be adhered to and support AML.

A QSA (Qualified Security Assessor) may be appointed for the purpose.

Also, all payments applications procured by GhIPSS must be PCI compliant -Payment

Application Data Security Standard (PA DSS)

Rationale

Improves public perception that their card details are safe.

Helps drive adoption of security standards by payments industry participants.

Meets Scheme rules

Sets an example for online retailers to follow (and in turn become PCI-DSS compliant).

2.2.9. Define a comprehensive stakeholder communication plan

Initiative Category Change management Ease of Implementation Medium

Impact High Proposed Timelines Starting 2014 and

continuously thereon

Current State

BoG together with Ministry of Communications

engages with the stakeholders through traditional

means - press conference, select stakeholder

meetings etc.

Peer Practice

UK: A range of communication tools are used to -

FAQ’s, one minute guides, success stories etc.

Tanzania: TCRA (Tanzanian Communications

Regulatory Authority) played an important role in

enabling mobile payments by communicating KYC

requirements (alignment of KYC for mobile SIM and

KYC for M-PESA) and supporting the improvement

of awareness and education.

PCI-DSS compliance

1-Don’t Agree

2-Neutral

3-Agreee

4-Strongly Agree

ISO certifications and audits

1-Don’t Agree

2-Neutral

3-Agreee

4-Strongly Agree

25

Nigeria: Launched a continuous campaign to rally

users and stakeholders to enable the ‘Cashless

Nigeria’ initiative. Used diverse methods like

Weekly information bulletins on roll-out and

stakeholder connect schedule.

Provide for detailed ‘Frequently asked Questions’ to

improve self learning

Share success stories that ‘consumers can relate to’

Voice of Stakeholder (RTGS)

Q: We asked stakeholders if BoG should develop a

Stakeholder Vs Media matrix and extensively enable

outreach along with development of a communication

plan with relevant Govt ministry / body?

A: More than 91% of the respondents agreed with this

proposed initiative.

Actions/

Details

We recommend a detailed communication model to engage with stakeholders at 3 levels :

Pre-initiative

Initiative Roll-out

Post Initiative (Ongoing)

We also recommend that target stakeholders should be segmented into two broad categories:

Commercial / Non-Consumer bodies – This category includes – Public Sector, Regulators,

Private Sector, Telcos, Banks and Large Merchants.

Retail & Individual driven enterprises – Individuals and Small merchants and vendors etc.

The stakeholders should be engaged with a range of communication tools. We suggest 15

such tools mapped to the phase and client type for use by BoG.

See suggested framework in following exhibit.

Rationale

Comprehensive engagement leading to awareness and education.

Early identification of issues triggering resolution.

Broad citizen support for ‘faster’ ePayment adoption.

Develop a Stakeholder Vs Media matrix

and extensively enable outreach. Develop a communication plan with relevant Govt

ministry / body.

1-Don’t Agree

2-Neutral

3 -Agree

4. Strongly Agree

26

Exhibit 9: Communications matrix. Initiative phase versus client segments

2.2.10. Enable fraud and misuse reporting


Impact Medium Proposed Timelines Short to Medium term

Current State

There are no specific returns sought on Fraud and

misuse.

Peer Practice

India: The RBI has issued specific guidelines on

Frauds – classification and reporting. It includes –

classification, monetary limits and aligned reporting,

attempted fraud case reporting, Quarterly returns

and a progress report, guidelines for internal review

and reporting to external investigation agencies etc.

Nigeria: A monthly return on fraud and forgeries is

mandated with a penalty for failure to report.


Q: We asked stakeholders if BoG should publish fraud

and misuse statistics?

A: 79% of the respondents agreed.

Pre-Initiative Initiative Roll-Out Post Initiative /

BAU / Ongoing

Clie

nt S

eg

me

nts

Initiative / Program Phase

Co

mm

erc

ial

Re

tail &

In

div

idu

al

dri

ve

n e

nte

rpri

se

s

Pu

blic

Se

cto

rP

vt

Se

cto

rT

elc

oB

an

ks

Sm

all

me

rch

an

ts /

Ve

nd

ors

etc

Ind

ivid

ua

ls

1.News paper adverts

2.Newsletters3.Workshop - Train the

trainer

4.Workshop - end user5.Training sessions

6.SMS Broadcast7.One page guide / Brochure

8.Circular / Notice

9.Emails10.Agent training

11.FM Radio12.TV Adverts

13.Product pack (with

timelines) 14.Road show

15.FAQs

5

La

rge

M

erc

ha

nts

7

3

2

Phase 1 Phase 2 Phase ‘n’

Re

gu

la

tors

13

3

1

6

8

11

9

14 14 14

Bank / Telco /

Player driven

BoG driven

4

4

4

4

1

6

11

1

6

11

7

7

15 15 15 15

8

910

Publish ‘fraud’ and misuse statistics

1-Don’t Agree

2-Neutral

3-Agreee

4-Strongly Agree

27

Actions/

Details

We recommend a directive to capture and report fraud through ‘returns’ to be filed by payments

providers. At a minimum, such returns can be sought on a monthly basis or based on ‘amount’

limits require immediate reporting. We recommend, “Payments Council” to determine the

appropriate method to communicate such statistics to payment service providers with

consideration towards anonymity (especially for consumption by general public).

Rationale Enables better oversight and triggers actions to maintain sanctity.

2.2.11. Reach out to National Communications Authority for telco

infrastructure

Initiative Category Governance & Legal Ease of implementation Easy

Impact Low (but necessary) Proposed Timelines 2014

Current State

Unclear which part of the telecoms and payments

infrastructure falls within the oversight and

regulatory remit if the National Communications

Authority or the Bank of Ghana.

BoG will launch regulations covering mobile

payments in 2014. Mobile payment schemes will

then need to be approved as compliant with BoG

regulations as well as NCA telco regulations. It is

understood to mandate a separation of accounts for

financial and telco transactions.

Peer Practice

Payments infrastructure is a vital infrastructure for a

country. With growth of mobile payments, a joint or

clearly demarcated regulatory overview is needed;

many countries have set up joint working groups or

committees to understand and work through each

others remits.

Certain countries such as Tanzania have adopted a

fast track approach to regulation whereby the telco

and the bank regulators work under and MOU whilst

the detailed legal work is being debated and drafted.

Actions/

Details

We recommend BoG and the NCA to set up a joint committee that delineates responsibilities

between each regulatory body and regularly discusses the state of the sector.

As an example, the NCA oversees the overall telecoms infrastructure, looking at public

charging or solar panel charging infrastructure in rural areas. With the advent of mobile

payments (e.g. the paying of government benefits on mobile accounts), the effectiveness of

this infrastructure becomes of vital economic importance for Ghana on any given day.

Therefore both regulatory bodies have different but shared interests in the state of the

infrastructure.

We recommend that an MOU is created and signed by BoG and the NCA as a precursor to the

final governance and its legal underpinning.

Rationale

Need for clear governance;

Need for regular overview of bottlenecks and solutions to possible roadblocks for rolling out

mobile money;

A joint working committee (between NCA and BoG) would facilitate this.

28

2.2.12. Stronger engagement with Ministry of Finance etc to secure buy-

in

Initiative Category Governance Ease of Implementation High


Current State

BoG is well aligned with Ministry of Finance (MoF).

Peer Practice

Kenya: Finance ministry ordered an audit into M-

PESA scheme in December 2009, more than two

years after no objection from Central bank of Kenya.

This demonstrated a light touch approach to kick

start the scheme but with monitoring oversight and

audit.

Actions/

Details

We recommend Prior and constant engagement with MoF to ensure government alignment on

all payments initiatives (from planning to execution – opinion, information sharing, feedback

incorporation and in-principle approvals.

MoF is a key stakeholder and we recommend adherence to communication principles

recommended in this report.

Rationale Early views on funding for transformation initiatives.

Secure buy-in on newer schemes (e.g. mobile money)

2.2.13. ePayments regulation / code



Current State

The Payment Systems Act 2003, Act 668 empowers

the BoG to oversee and manage payments systems

and provide broad guidance on payments aspects

(obligations, evidence, disputes etc)

Peer Practice

Australia: The ePayments Code regulates electronic

payments, including ATM, EFT, POS and credit card

transactions, online payments, internet and mobile

banking, and bill payments.

India : Payment and Settlement Systems Act, 2007

(PSS Act, 2007)

Actions/

Details

We recommend realization of a ePayments code that provides for, at a minimum, the following

aspects :

Disclosure

Liabilities

Conduct of payments service providers

Complaint handling.

Such code will typically cover aspects like - Terms and conditions for products, Un-authorized

payments liability, Recovery of mistaken payments etc.

Rationale

With the proliferation of e-payment products in recent years there is a need to document the

rights and responsibilities of payments service providers vis-à-vis consumers.

The challenges and outcomes vary based on underlying product and hence this regulation /

code should cover product level needs of consumers of payments services.

29

2.2.14. eMoney regulation



Current State

The Branchless banking guidelines of 2008 are the

closest to eMoney guidelines. But the scope is

significantly different.

An eMoney regulation enables a sound legal

framework for ‘stored value payment products’

Peer Practice

eMoney directive in EU.

UK : eMoney is defined as :

─ money that is stored electronically, including magnetically;

─ issued on receipt of funds for the purpose of making payment transactions

─ accepted as a means of payment by persons other than the issuer


Q: Against the backdrop of mobile and epayments

revolution in payments both globally and in Africa, We

asked stakeholders does Ghana need a

comprehensive emoney framework?

A: More than 95% of the respondents ‘Strongly agreed’

an e-payments framework was needed for Ghana.

Actions/

Details

We recommend issuance of eMoney regulations that cover, at a minimum :

Authorization (who can issue)

Capital

Conduct

Complaint handling

Supervision and reporting

Fees etc

eMoney includes products like Prepaid, wallets whether used at retailers or online.

Rationale

This regulation enables, typically, non-banks to provide payment and banking (partially)

services and can be a useful medium to aid financial inclusion.

Such competition, typically, enables better choice and value for consumers by triggering the

need for ‘Innovation’

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

30

Case Study: Brazilian president approves mobile payments law

Brazilian President Dilma Rousseff has approved a law that introduces regulations for mo-bile

payments in Brazil. Law number 12,865 creates a new legal entity known as a "payments institution,"

which will be regulated by the Brazilian Central Bank and allowed to offer mobile payment and

banking services to low-income consumers. Digital wallet providers, card issuers, banks, and mobile

operators will be eligible to apply for payments institution licenses.

The main goal of the bill is to promote financial inclusion. It also calls for common standards and

interoperability between Brazil's various m-payments initiatives. But interoperability will not be

mandatory, rather it is signaled as a goal further down the road, and any new (m-payment) service

(that) receives a license will be required to have a clear roadmap of how it will eventually interoperate

with the wider Brazilian financial ecosystem. The bill seeks to create the 'lightest' possible mechanism

in terms of regulatory burden for commercial players, hoping it will translate into cheaper payment

instruments that will reach low-income customers.

The BCB had 180 days from the publication of the bill to develop the framework for its payments

regulations, which will need approval by Brazil's Congress and the country's Conselho Monetário

Nacional, or National Monetary

Low banking penetration but growing middle class

For many financial services firms in Brazil one of the biggest challenges is how to gain market share

of the upwardly mobile lower middle class without incurring high credit and operational risks. The

advent of basic payments services through a “KC-Lite” approach, effectively capping the amounts that

customers are allowed to transact on a daily basis in return for a lighter enrolment regime; allows the

creation of vast platforms of users that can then be analyzed for customers who warrant a full-service

approach. It represents, in other words, a platform which can be used by banks to enroll those

customers that seem most upwardly mobile and credit worthy.

Brazil has a high percentage of unbanked consumers, even as mobile phone penetration there has

grown rapidly: according to the World Bank, in 2011 less than 60 percent of Brazilian adults had an

account at a formal financial institution, while there were 125 mobile phone subscriptions per 100

people.

How to create scale

In order for such a platform to be viable, scale is needed. Various initiatives are being studied,

including the adoption of a prepaid m-payment method for Sao Paulo’s and Rio de Janeiro’s micro-

bus public transportation method, the disbursement of Bolsa Familia’s welfare payments through

mobile accounts, or the linking of POS systems to allow for m-payments.

31

3. Making Better Use of What is Already There

3.1. Introduction

As stated in the introduction of this document the financial infrastructure and baseline

payment systems are already in place. This chapter examines specific initiatives that can be

introduced to achieve a wider usage of those systems as well as enhancements and value

added services that can be applied to those current schemes.

The current mobile services should be ‘re-invigorated’ and closer cooperation between the

NCA and Bank of Ghana plus the MNO’s is needed in a coordinated manner to

subsequently relaunch the existing services. It is believed that the endorsement of the m-

money providers as PSP’s by BoG through a new stringent approval process and

subsequent publicity will provide a high degree of trust with regard to any perceived risks

when compared to cash usage.

This section will also address some of the issues in terms of EftPOS acceptance which is not

widely available against the backdrop of a merchant community with few large retail chains.

We also examine hybrid EftPOS and acceptance of m-money at the point-of-sale will add

further acceptance of the move from cash especially as the old adage of ‘Convenience,

convenience and convenience’ holds true. Payments is just the final stage in a purchase.

From a merchant perspective a faster tendering process away from cash will mean less time

at the checkout and may reduce checkouts, but the benefit will be greater information and

the possibility of stimulating sales using a loyalty scheme.

Usage of monoline cards e.g. CUP which operate outside the card schemes allied to pricing

caps on fees can reduce the merchant service charges that are collected from acquiring

banks. The level of MSC has been quoted as a principal barrier to merchant acceptance.

We note that the Bank of Ghana is considering the purchase of EftPOS terminals to

stimulate acceptance which in turn will influence consumers to sign up to card schemes and

thus rely less on cash. However it is strongly recommended that any such terminals be

‘future proofed’ in terms of what methods can be adopted e.g. NFC, m-money, EMV etc. In

many cases such as ‘the charcoal seller’ or small or sole traders education and acceptance

of m-money will negate the need for traditional EftPOS as it will be mobile or cash rather

than card or cash.

32

3.2. Initiatives

3.2.1. Reinvigorate mobile payments

Initiative Category Awareness

Commercial Ease of Implementation High

Impact Medium Proposed Timelines Set-up and launch

campaign from H2 2014

Current State

Ghanaian m-payments schemes launched by

commercial parties such as MTN or Airtel are slowly

gaining traction;

However even though subscription numbers seem

to be rising, transaction volumes seem to be

flattening;

Analysis shows that this can be attributed to a

number of factors (amongst others):

─ A lack of legal underpinning for m-payments providers with respect to the provision of payments services (to e addressed shortly with new upcoming legislation);

─ The focus and predominance of peer-to-peer payments in current schemes, and the lack of focus on retail payments (see also discussion on Hybrid POS below)

─ A lack of trust and education in the use of mobile payments schemes;

─ A lack of government sponsored m payments: The government is the prime source of transactions in Ghana and could drive transaction volumes substantially;

─ The need for a more predominant role to be played by the banking sector in Ghana with respect to offering cash and liquidity services to m-money agents and branches;

─ The lack of standards and a roadmap to “interoperability” between m-wallets and between m-wallets and banks.

Peer Practice

There are many examples of mobile payments

schemes throughout Africa. Schemes such as mPesa

have actually been used as a template for the current

schemes in Ghana. However the copying of these

examples to the Ghanaian situation may lie at the heart

of the current slowing of growth in transaction volumes.

In other words, a reinvigoration of mobile payments

must tailor these schemes to the specific Ghanaian

situation and culture in order to succeed.

It should be clear as to who within government has the

responsibility and accountability for regulating and

coordinating the m-payments market: either the bank

of Ghana or the National Communications Authority.

The upcoming addendum to the present e-money

legislation will clarify this role, obliging mobile money

and wallet suppliers to register as payments services

providers. PSP’s in the EEA are regulated under the

terms of the EU payments services direction (PSD).

Separation of Telco services such as post-pay airtime

and banking services is a likely outcome but a close

working relationship between the NCA and BoG will be

essential to the success of this initiative which has

brought significant benefits to peer African countries.

Previous Research

Key factors determining the success of mobile money schemes2

External Factors

Socio-economic factors (such as geography, GDP per capita, levels of financial inclusions, and level of GSM

penetration and the level of infrastructure in a market) certainly have an influence on how a mobile money

provider will develop its service; however, they do not determine or predict the degree of its success;

Studies show no statistical correlation between the GSM market share of an MNO and the success of its

mobile money service. Mobile money can be a viable business even for small operators;

2 Source: GSMA — Mobile Money for the Unbanked, State of the Industry 2012 and MMU “Driving Customer Usage of Mobile

Money for the Unbanked” 2011

33

There is in fact a positive correlation between level of competition in a given market and the success of mobile

money offerings: more market dynamics means more in-vestment and success for all parties;

The vast majority of successful mobile money providers are MNOs, rather than banks or third-parties.

However in most regions MNO regulatory environments are not clear or enabling MNOs to offer mobile money

services along with banks, in or-der for mobile money to extend the reach of financial services successfully

within more markets. This is seen as an inhibiting factor.

Internal Factors

Mobile money is an OpEx, not a CapEx business. Investing in distribution seems to be key. Successful

providers tended to focus on growth rather than profitability and tended to re-invest the money they made, and

all successful providers have the ambitious objective of growing their Mobile Money business into a significant

share of overall revenue within five years of deployment (e.g. at Safaricom this is about 18% of total revenues)

Organizational aspects play a key role, and what seems to work is: strong commitment to mobile money from

its CEO, mobile money unit stand-alone from the rest of the company, focus on one or two core services to

start with, assign high number of FTE’s to distribution and customer care

In terms of marketing strategy, mass mark advertisement campaigns used primarily to raise awareness, but

direct marketing and field agents to register new customers.

In terms of product mix it appears that the key to success is choosing the right product for a market and then

focusing on this product; In Ghana’s case it appears that over reliance on peer to peer transactions may not be

enough, and that a focus on retail payments is needed too;

It is crucial to make it easy for customers to make transactions soon after they register

If literacy barriers are high, provide over-the-counter services, which allow a mobile money agent to perform a

transaction on behalf of the customer.

Focus on creating and maintaining high performing agents:

Crucial to develop solutions for agents to easily manage their liquidity and rebalance: e.g.: easy access to

mobile money float and liquidity (cash), such as using master agents, super agents, and rebalancing via

internet banking.

Active agent management – closely monitor agent activity, assessing both the volumes of their transactions

and the quality of their service.

Dismiss agents for KYC infringements, fraudulent activities, low performance (based on their volume of

transactions and revenues) and branding infringements. Master agents can be cut if they fail to keep adequate

levels of float or have too many underperforming agents.

Managing active rates – active rate of on average of successful providers is 73%

Actions/ Details

We recommend the inception of a working group that investigates measures for

reinvigorating mobile payments in Ghana. We suggest this working group to operate under

the auspices of the Ghanaian Payments council and the National Communications Authority,

and to adopt the following guidelines and objectives:

Pool resources from commercial parties to develop an education campaign for the use of

mobile money. Focus on “below the line” marketing like using face-to-face methods

through agents rather than above the line mass advertising;

Clarify who within government has the responsibility and accountability for regulating and

coordinating the payments market: either the bank of Ghana or the National

Communications Authority. The upcoming updating of the present e-money legislation will

clarify this role, obliging mobile money and wallet suppliers to register as payments

services providers. This separation between telco’s traditional subscription business and

payments provision should also ensure that payments provision has its own rules for

consumer protection, dispute resolution etc. The Bank of Ghana has a role to play in

informing the public in general about this new role and in engendering trust of the public in

Ghanaian m-payments schemes as guaranteed under law;

Start a program for the widening of adoption of mobile payments, e.g. through fuel

stations, hotels, restaurants , etc. See also section 3.5 on hybrid POS for SMS-based

34

POS solutions needed to increase the use of mobile payments for retail situations;

Publish a roadmap in which guidelines and expectations on standards, interoperability

between wallets and between wallets and banks are set in the future;

Pursue the creation of strategic partnerships between banks and Telco’s for the banking

support of agent networks in cash and liquidity management services;

Develop an incentivizing pricing scheme: price the use of cheque or cash payments

higher than electronic payments;

Include guidelines for a mechanism aimed at the resolution of incorrect/disputed

payments;

Involve government agencies. Government payments such as wages, benefits, but also

acceptance of payments such as tax, fees and fines etc. should be made electronically

through m-wallets or bank accounts.

Rationale Reinvigorating m-payments in a coordinated manner and with government and payments

council involvement will lead to rising electronic transaction volumes.

3.2.2. Provide value added services on current schemes

Initiative Category Scheme Ease of Implementation Medium


Current State

BoG manages the GIS (Ghana Interbank Settlement

System) RTGS system. The Average value per

transaction has increased from GHC 509,279.4 in

2003 to 1,134,731.7 in 2010 demonstrating that only

very high value are being settled on RTGS system.

GhIPSS manages multiple schemes for e-payments.

Of which GACH supports direct credit and direct

debit products.

Peer Practice

India: Credit Transfer scheme (NEFT) has

introduced multiple intraday settlement windows

providing cleared funds in under 2 hours from

initiation.

Kenya: CBK - Kenya’s banking regulator requires

the use of RTGS for payments above Sh1 million

but over time the system has proved popular even

for payments of as low as Sh100,000.

Voice of Stakeholder (RTGS)

Q: We asked stakeholders ‘by when’ should an RTGS

limit be lowered?

A: More than 65% of the respondents responded that

this facility should be launched within 2014.

Voice of Stakeholder (Intraday Batch)

Q: We asked stakeholders ‘by when’ should intraday

multiple batches for ACH payments be enabled?



Lower RTGS monetary limit

Near Term (6months)

Short Term (2014)


Long Term (beyond

2017)

Intraday multiple batches for Direct Transfer / Credit Transfer

Near Term (6months)

Short Term (2014)


Long Term (beyond

2017)

35

Voice of Stakeholder (Advance Submissions)

Q: We asked stakeholders ‘by when’ should advance

submissions for ACH payments be enabled?



Actions/ Details

We recommend BoG / GhIPSS to enable the following options on existing scheme /

product to improve their attractiveness to users :

Intraday batches for Direct credit / credit transfer settlement

Enable advance submission of payments (Direct Debits and Credits)

Lower RTGS limit

Provide direct corporate access to the G-ACH, as per the UK

Develop a scheme for mobile-authentication of direct debit collections to introduce trust

in ‘pull’ transactions for corporate and consumers

Consider image capture of cheques and positive pay schemes.

A move to uniform account numbers and standardized forms

Rationale

Enable users taste power of e-payments and faster turnarounds.

Enables planning by users and shift from cheques.

Removes re-keying of individual by banks on payroll that is made via RTGS payments

Introduces control and trust on direct debit collections to broaden usage of that payment

method

3.2.3. Ensure all employees paid electronically

Initiative Category

Legal

Technical Infrastructure

Commercial

Ease of Implementation Hard

Impact Very High Proposed Timelines

Start process by end of

Q4,2014

Implement by end of Q4

2020

Current State

Wages and salary payments in Ghana are done

mostly by cheque or cash;

With the adoption of mobile money schemes,

wage/salary payment onto mobile money wallets or

accounts is feasible and provides a strong

advantage over cheque and/or cash usage.

Peer Practice

Banks provide employee templates through internet

banking for SME’s.

Larger corporate are sponsored by their banks to

submit single debit/multiple credit payroll directly to

the ACH via ACH accredited software and ‘scheme

certification

Of interest:

http://www.safaricom.co.ke/business/solutions-by-

Enable advance submission.

Near Term (6months)

Short Term (2014)


Long Term (beyond

2017)

http://www.safaricom.co.ke/business/solutions-by-business-needs/grow-your-business/cloud-services/online-payroll

36

business-needs/grow-your-business/cloud-

services/online-payroll

Stakeholder comment

In interviews with stakeholders, Government departments make payments to employees directly and employees

have bank accounts to support this. However it was reported that payrolls can be returned due to what are

viewed by corporate customers as spurious reasons and in one bank, payment is made to the bank using RTGS

with a schedule of payments to be made to employees, resulting in extra work for the bank and the possibility of

keying errors. Peer practice is to use a single debit (employer) and multiple credits (employees) via the national

ACH.

Actions/

Details

We recommend the inception of a working group that investigates measures for the

stimulation of electronic wage payments. We suggest this working group to operate under the

auspices of the Ghanaian Payments council, and to adopt the following guidelines:

Develop scenario’s for the electronic wage payment on both existing infrastructure (bank

accounts) and on mobile money wallets;

Ensure interoperability between bank and mobile money accounts is on the roadmap;

Develop an incentivizing pricing scheme: price the use of cash, cheque or cash wage

payments higher than electronic payments;

Include guidelines for a mechanism aimed at the resolution of incorrect/disputed payments;

Pay government benefits or welfare benefits electronically or price them accordingly so that

electronic payment is cheaper for beneficiary;

Allow for automatic income tax deductions at a later stage: if included from the outset this

may lower the adoption of electronic wage payment;

Involve government agencies: government wages should be paid electronically, thereby

stimulating the use of overall electronic payments.

Rationale

Stimulating electronic wages vastly improves the efficiency of the overall payments

landscape. Payment of benefits ensure payments reach the beneficiaries, and allow for

proper statistics and controls of overall wage/benefit payments.

Electronic wage payments will allow automatic income tax deduction in the future.

3.2.4. Other e-government initiatives

Initiative Category Scheme Ease of Implementation High

Impact High Proposed Timelines Start H2 2014 through

2018

Current State

End of year/manual tax deductions and

reconciliation

Tax payments to the treasury are variable in their

use of electronic payments

Apart from a closed service provided by two banks,

electronic payment of customs duties is not

possible, and is usually by cheque or cash.

Peer Practice

UK: RTI (Real Time PAYE) schemas the most

radical change to tax payments since 1947.

Removes end of year reconciliation and supports

top up benefits.

Kenya/Uganda – have an online tax payment

system such that when users make a payment via

their bank, the bank links to the tax portal and

validates the tax slip number. This ensures accurate

payments and immediate reconciliation for the tax

department.

37

Actions/

Details

We recommend that the GCNet platform be made immediately accessible to all banks in

order to promote electronic payments.

We recommend an initiative whereby Tax payments can be made electronically (and far

easier than cash or cheque) and supported by the correct information. Depending on the

values this might use the new Instant pay or existing RTGS systems.

We suggest that the new Instant Bill payment service planned for 2014 also enables

government tax departments to be registered, though the alerting feature may not be

required.

The Instant pay scheme should allow the capture of tax payment data. A medium to long term

objective could be RTI, such that when salary payments are made to employees under a

PAYE scheme, information on gross to net salaries together with tax and other deductions

are provided to the Ghanaian tax authorities as per the UK scheme.

We further recommend that e-collections is adopted for customs payments via mobile,

internet or other electronic means and al-lows for any additional data such as PDF or

photographed documents and receipts as required.

Benefit and pension payments should always be paid using electronic means direct to a bank

account, payment card account, m-money account as appropriate.

Rationale

Simplified and accurate assessments for taxation

Provides the data needed for any top up benefits for low paid workers.

Faster receipt of tax payments and less manual processes.

Easier and more accurate reconciliation of receipts vs. demands.

Less risk of dishonoured cheques or cash ‘leakage’.

3.2.5. Develop and roll-out a hybrid or mobile Point Of Sale (M-POS)

capability

Initiative Category Technical Infrastructure

Commercial Ease of Implementation Medium

Impact High Proposed Timelines

Start process by end of

H1,2014

Implement by end of Q4

2015

Current State

Mobile payments are growing steadily in Ghana,

but are mainly restricted to peer-to-peer payment

situations.

Card payments in retail situations are limited in

number.

POS penetration levels are low in Ghana (4.16 per

100,000 inhabitants)

In order to increase the acceptance of e payments

in retail situations, a comprehensive stimulus

program is needed, which puts a series of M-POS

solutions at its heart.

SMS-based retail POS solutions seem to be best

positioned in Ghana.

Peer Practice

Kenya: Lipa Na MPesa: retail payments by which a

customer enters a merchant’s predefined mPesa till

number and then pays through the mPesa menu on

his/her phone through an SMS. There are no

transaction fees for payee; merchant pays a fee per

transaction (usually +/- 1%).

Nigeria: Paga: using a specific merchant short-

code, customers can pay merchants through SMS.

POS card accepting tools: Square, Izettle: POS

apps on a Smartphone that accept card payments

MHIT (Australia): SMS-based system

aimed at small retailers that allow menu

tailoring per retailer: e.g. an app for a

particular restaurant with set menu

where an SMS-based payment can be made at (or

before) 24purchase.

38

Voice of Stakeholder (POS Penetration)

Q: We asked whether BoG should target a specific

POS penetration level (As per World Bank the ratio is

4 per 100,000 Vs e.g. Tanzania 11/100,000)?

A: About 60% of respondents agreed.

Voice of Stakeholder (Display)

Q: We asked the stakeholders if BoG should negotiate

a ‘country wide’ POS deal with a leading consortium of

POS suppliers? (e.g. Nigeria negotiated a similar deal

and POS is available at N45k/ USD 280)

A: About 50% of respondents agreed


Q: We asked stakeholders if a hybrid POS would be a

winning initiative?

A: more than 75% of respondents strongly agreed.

Actions/

Details

We recommend the inception of a working group that takes the initiative to stimulate the

adoption of POS devices in retail situations in Ghana with the aim of increasing e-payment

levels in retail situations. We suggest this working group to operate under the auspices of the

Ghanaian Payments council, and to adopt the following guidelines:

Develop standards and guiding principles for POS methods for retail situations: e.g.:

stimulate the use of SMS-based POS methods such as Lipa Na MPesa;

Include guidelines for a mechanism aimed at the resolution of incorrect/disputed payments;

Stimulate the integration of SMS-based POS methods with Value-Add-Services such as

balance of accounts for merchants, inventories, etc...

Keep transaction pricing low: retail customers should not have to pay for using the service,

merchants should pay very low fees based on package (e.g. depending on value add

services that payments providers offer them);;

Determine the feasibility of creating a Smartphone app for merchants that integrate the SMS

confirmation messages from retail customers with value add services (total sales, VAT,

etc.);

Develop a strategy for SMS-Based POS methods: a single standard that all commercial

parties need to adhere to, or allowing competing parties to develop their own standards;

Involve merchant associations, consumer protection agencies, telco companies and banks

in the development of the standards/guidelines;

Develop a roll-out strategy: per retail sector or nationwide (e.g. for transportation, food

purchasing or fuel purchasing, or for all situations);

Develop an awareness campaign aimed at increasing the use of SMS-based payments;

Determine guidelines for card-accepting POS systems: study the applicability of existing

Smartphone applications for card-based POS (i.e. Square or Izettle).

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

e. This would be the

wrong thing to do

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

39

Rationale

Stimulating m or e Payments in retail payment situations will vastly increase the level of

epayments in the economy and reduce cash usage;

Improves awareness and increases acceptance levels;

Provides a standardized framework for commercial parties to adhere to, including proper

dispute resolution mechanisms that engender trust in the payment method;

Allows for the focused stimulus of certain sectors;

Determines the applicability of card-based mobile POS systems.

3.2.6. POS deal negotiation (Dual readers including Contactless?)

Initiative Category Technical Infrastructure Ease of Implementation Medium


Current State

PoS penetration is low in Ghana. According to

World Bank estimates (in 2009) there are only 4.16

PoS terminals per 100,000 residents.

Peer Practice

Nigeria: The industry has endorsed four

manufacturers for supply of Point-of-Sale terminals

with negotiated discounts and local support

arrangements. A PoS can be purchased from any

of these suppliers for as low as N45k per terminal.

However, parties are free to purchase PoS

terminals from any manufacturer, so far they meet

the PoS specifications set in the Nigerian Point-of-

Sale guidelines( plus card industry standards).


Q: We asked stakeholders if BoG should negotiate a

‘country wide’ POS deal with a leading consortium of

POS suppliers?

A: Only 50% of the respondents agreed with the view,

while more than 40% did not agree that this should be

enabled.

Actions/

Details

We recommend :

Issuance of a position paper on this infrastructure in co-operation with the NCA.

A follow-up of the same with an industry interaction with representatives from the POS

suppliers under the aegis of the payments council.

Provision should be made to support ‘dual interface’ (Contact and Contactless) PoS

Publish a business and benefits case of negotiated PoS deal. A positive scenario arising out

of such an analysis, along with other due considerations should form the basis of adoption of

this initiative.

Rationale

While the benefits of higher PoS penetration are evident, the fractured response from

stakeholders necessitates a focused discussion (documented through a position paper).

Replacement of ‘contact’ only PoS in favor of dual interface PoS is costly and is an inhibitor.

Early provision will help ‘market’ led adoption.

PoS penetration is an integral part of vision of cashless economy. Without higher POS

penetration cashless initiative cannot be realized.

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

e. This would be the wrong

thing to do

40

3.2.7. ATM switching & Activity Monitoring

Initiative Category Technical Infrastructure Ease of Implementation Low to Medium


Current State

No real time monitoring available

‘Cash n dash’ services

Biometric authentication

Both VISA and MasterCard are issued and

accepted in Ghana, however both local and foreign

card transactions are routed to VISAnet and Master

Card Int. for processing.

Peer Practice

Nigeria: Is in the early stages of implementing

technical monitoring solutions – terminal

components and service status, detection and

tracking, network availability and status etc. BAM

(Business activity monitoring) solutions for complex

event processing are also being considered.

UK. The LINK network enables all domestic Visa

and Mastercard debit card transactions to be

processed by the LINK switch with RTGS

settlement of net positions.

Actions/

Details

BoG should ensure cards used on domestic ATMs to be processed by gh-LINK

We recommend a medium priority for activity monitoring.

Rationale A core aspect of safer and lower cost domestic operations that will be the basis to support

effective operations, given the expectations around greater volumes.

3.2.8. Supporting laws as per World Bank guidelines


Impact Medium Proposed Timelines 2016-2018

Current State

The Republic of Ghana has its banking and payments

regulatory base primarily in the following acts.

Banking (Amendment) Act, 2007, Act 738

Anti-Money Laundering Act, 2008, Act 749

Borrowers and Lenders Act, 2008, Act 773

Payment Systems Act 2003, Act 668

Financial Institutions (Non-Bank) Law 1993, PNDC

Law 328

Bodies Corporate (Official Liquidations) Act, 1963

(Bankruptcy and collaterals)

Bills of Exchange act of 1961 Act 55 (an adaptation

of the English Bills of Exchange Act 1882)

The Payments systems act provides for :

principles of transparency as applicable to payment

systems;

minimum obligations of participating financial

institutions;

principles required to achieve irrevocability and

finality of payment;

admissibility of electronic evidence in the law courts;

Peer Practice

Guidelines: The World Bank has recommended a

set of 12 aspects of regulation that should comprise

the legal framework for the National Payments

System. i.e.

─ General laws: Property and Contract, Banking and Finance, Insolvency, Credit and collateral, laws for determination of Jurisdiction and e-documents& digital signatures.

─ Specific laws : Payments instruments, calculation and discharge of payment obligations, default proceedings and disputes, central bank roles, responsibility and authority in National Payment system, formation and conduct of infrastructure service providers and markets, securities infrastructure services.

India : Payment and Settlement Systems Act, 2007

(PSS Act, 2007)

41

dispute resolution; and

other miscellaneous provisions covering disputes,

offences, penalties and interpretations.

Source : http://www.doingbusiness.org/law-

library/ghana and http://www.bog.gov.gh/


Q: We asked stakeholders their opinion on the current

state of laws that support / pertain to payments in

Ghana (General Laws)?

A: Other than Banking & Finance laws and credit &

collateral, the respondents felt that the remaining laws

need a revision / upgrade.

Legend for all graphs:

Legend for all graphs:

Property & Contract Laws

Banking & Finance laws

Insolvency laws

e-documents &

digital signatures

Jurisdiction & applicability

Credit & Collateral laws

http://www.doingbusiness.org/law-library/ghana

http://www.doingbusiness.org/law-library/ghana

http://www.bog.gov.gh/

42

Voice of Stakeholder (Specific Laws)

Q: We asked stakeholders their opinion on the current

state of laws that support / pertain to payments in

Ghana (Specific Laws)?

A: Other than laws pertaining to Payment Instruments

and Calculation and discharge of payment obligations

all other laws need a revision / upgrade.

Actions/ Details

We recommend an in-depth analysis of existing laws to ensure alignment with World Bank

guidelines. We recommend the ‘legal’ committee in the Payment council as the

appropriate forum to delve into this aspect. Notwithstanding the typically long drawn

process of regulation from ‘Drafting’ to ‘Act’, BoG should issue operational guidelines,

where applicable, to support initiatives in the interim.

Rationale

Helps align to global standards

Provides sound grounding for planned payments transformation that is legally

enforceable.

3.2.9. E-payment only threshold

Initiative Category Legal Ease of Implementation High

Impact Medium to High Proposed Timelines 2015

Current State

Currently there is no monetary threshold beyond

which payments need to be effected only through

electronic means.

Currently, any such limits are circumvented through

multiple smaller transactions totaling to required

amounts.

Peer Practice

Nigeria: Third party cheques above N150, 000

ineligible for encashment over the counter and have

to be presented through clearing.

Actions/

Details

We recommend launching this initiative with a relatively higher monetary limit to acclimatize

and create awareness among stakeholders. The same should be followed-up with lower

limits aligned to other ‘Entry criteria’ for Cashless policy.

Coordinated to come in to play at later stages of cashless policy.

Rationale Helps prepare stakeholders to move to e-payments.

Payment Instruments

Calculation and discharge of

payment obligations

43

4. Building for the Future

4.1. Introduction

This chapter covers the specific new initiatives that may use existing infrastructure, but

provide new payment schemes or services that will bring benefits to all stakeholders.

4.2. Initiatives

4.2.1. Launch instant payment scheme

Initiative Category Scheme Ease of Implementation Low

Impact High Proposed Timelines 2014 (in progress)

Current State

Currently there is no ‘Instant Payment’ Scheme

operational in Ghana.

However, GhIPSS is undertaking preliminary

activities in launching the scheme in 2014.

Peer Practice

UK: The Faster Payments Scheme (FPS) that

delivers immediate payments has seen very high

uptake since launch (over the last 5 years). The

FPS rails have been used by banks to overlay

innovative solutions. Vocalink is launching ‘Zapp’

initiative for use by banks to enable immediate

mobile payments.

India: Immediate payments are developed as a

mobile enabled product - IMPS. Origination is now

allowed from Netbanking services of commercial

banks also.

Nigeria: An important pre-criteria for ‘Cashless’

initiative, the NIP - Nigerian Instant Payment was

launched prior to cashless initiative.


Q: We asked stakeholders ‘by when’ should an Instant

payment product be launched in Ghana?


this scheme should be launched within 2014.

Actions/ Details

We recommend GhIPSS to launch Instant Payment Scheme at the earliest.

BoG should also encourage payment institutions to re-use the ‘Instant Payment’ scheme

to build / overlay Value added services (VAS)

The launch should also be aligned with the stakeholder communication plan method

recommended.

Instant / real time low value payments scheme

Near Term (6months)

Short Term (2014)


Long Term (beyond 2017)

44

The overall implementation plan should be agreed with the Payments council to ensure

that scheme rules and real time implications are understood and agreed.

Scheme rules would include pricing, debit caps for banks (if deferred net settlement),

daily and transaction limits for specific banks, response time, sort code checker etc.

BoG should ensure that banks have sufficient AML security checks in place given the

real time nature of transactions – this would typically follow card systems practice.

However, GhIPSS could in fact offer a ‘cloud based’ service whereby suspect

transactions could be returned to the sending bank for additional verification.

Rationale

Enable users taste power of immediate secure transfer.

Prepares consumers for a ‘Cash-lite Ghana’ initiative.

Provides the infrastructure for further services e.g. non-debit card online purchases (see

4.2.4)

4.2.2. Enable a bill pay scheme and supporting infrastructure


Impact High Proposed Timelines 2014(in progress)

Current State

There is no specific bill presentment and payment

infrastructure. Mobile solutions provided by Telecom

firms offer payment options.

GhIPSS plans to launch an Instant Bill service in

2014, which will notify the biller of a payment being

made and a gateway to view transactions. This

stops short of a full EBPP program but pre-

registered billers should simplify the process,

reconciliation and reduce errors.

Peer Practice

Australia: BPAY is a payment and e-presentment

service provided through the BPAY Scheme,

comprising financial institutions and biller

businesses. BPAY is currently offered by over 150

financial institutions and on more than 45,000 bills.

Bills carry CRN (Customer reference number) to

match invoice and customer. Value added services

like BPAYView for Online / Mobile banking view and

payment, pay using QR code available.

Nigeria: e-Bill PAY scheme that is Account-number-

based, online real-time Credit Transfer (based on

NIP). This is available through multiple channels -

Internet Banking (IB), Mobile Banking, Kiosk to

registered billers with notification.


Q: We asked stakeholders, when to adopt Bill Pay

initiative- in the near, medium or long term?

A: 91% of the respondents agreed that this scheme

should be launched in the near term.

Use of QR codes in the EBPP process was also of

interest to the stakeholders but was felt to be a longer

term initiative towards 2017.

Actions/

Details

We recommend launch of bill presentment and payment scheme leveraging current

infrastructure that will bring the planned Instant bill initiative to a full EBPP capability. Within the

design of this solution, alignment with Instant payment scheme is envisaged.

The system should also allow full details of the invoice presented to be visible to both biller

(supplier) and payer (customer) and a unique reference that enables the biller to reconcile the

invoice(s) against their bank statement.

The system should enable extended narratives to be supported and GhIPSS might consider a

central repository of invoice data along the lines of the Finnish Rosettanet scheme.

Bill pay scheme

Near Term (6months)

Short Term (2014)


Long Term (beyond 2017)

45

Rationale

Enables bringing all ‘pull’ payments onto single umbrella

Enables an EBPP infrastructure and triggers drive away from cash and cheque based

payments.

Provides alerts on payments being made and also enables more efficient open invoice

reconciliation.

4.2.3. Host anti-fraud solution at GhIPSS



Current State

There is no real time fraud detection solution in

place.

Peer Practice

Thailand: ITMX, Thailand's interbank payment

provider, implemented a real-time fraud detection

solution for its 21 member banks. The solution

detects fraud in ATM/debit card transactions and

monitors 70 million transactions per month.


Q: We asked stakeholders, if BoG / GhIPSS host anti-

fraud technology at GhIPSS level (collaborative space)

to improve reliability?

A: 87% of the respondents agreed, with a majority

agreeing strongly.

Actions/

Details

We recommend implementation of anti-fraud technology at GhIPSS to combat fraud. As the e-

payment uptake improves, fraud can dilute the faith of consumers.

Rationale

Protect member banks from fraudulent transactions.

Ensures consistent coverage across member institutions.

Reduce financial losses and operational costs.

4.2.4. Enable a collaborative e-commerce payment method (e.g. iDeal /

MyBank)

Initiative Category Scheme Ease of Implementation Low to Medium

Impact High Proposed Timelines Medium term

Current State

Currently there is no GhIPSS / BoG scheme that

enables e-Commerce.

This assumes significance due to the fact that while

Ghanaians match up to African average on usage of

Social networking, mo-bile banking and Online

shopping are ‘strikingly’ below African Average and

may need a ‘trusted’ online multi-bank e-commerce

enabler.

Peer Practice

Payment schemes that enable e-commerce have

successfully integrated ‘net / online banking’

functionalities into e-commerce checkouts, whereby

no card or banking details are shared with the

Merchant, while paying from the convenience of Net

/ online banking services provided by commercial

banks.

iDeal, NL: e-Commerce initiative in the Netherlands

became the ‘most preferred’ method of payment for

e-commerce transactions beating cards, PayPal,

credit transfer and direct debit.

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

e. This would be the wrong

thing to do

46

MyBank, EU (EBA): EBA’s ‘MyBank’ initiative,

similar to iDeal, but at a European level, also is

rapidly becoming the delivery channel for multiple

payment instruments. While Credit Transfer and

Direct debit are available, future products include

payment on delivery, P2P payments, subscription to

e-invoices etc.

Actions/

Details

We recommend an immediate analysis into this scheme. While benefits may be limited to urban

population in and around Accra, the signaling effect of such a scheme is likely to have far

reaching consequences.

Rationale

Channel increasingly available Internet usage and usage habits to trickle into banking while

enabling to drive e-commerce.

Overtime can pick up volumes from other products, especially loss leaders like cash and

cheque.

Is ‘bank friendly’ and can re-use ACH infrastructure.

Lower reliance on payment card network / infrastructure.

4.2.5. Implement penal pricing for cash & paper (Cashless Policy)

Initiative Category Legal Ease of Implementation Low

Impact High Proposed Timelines 2015

Current State

There are no penal provisions for cash and paper

(Cheque) payments.

3rd

party cheques above GHS5000 are ineligible for

enchashment OTC.

Peer Practice

Nigeria : Defined a comprehensive penal pricing

policy :

─ Daily cumulative limit for withdrawals and lodgments

─ Lower penal fees for deposits and higher penalties for withdrawals

─ 3rd party cheques above N150,000 ineligible for encashment OTC

─ No reports to Central Bank on excess drawers.

─ Cash Charges kick-in after 3months of policy start date (charges holiday).


Q: We asked stakeholders, when to adopt a cashless

policy in Ghana - in the near, medium or long term?

A: 57% of the stakeholders wanted the implementation

to be within the short term, while the balance 43%

wanted the implementation in medium term and

beyond.

Introduce cashless policy

Near Term (6months)

Short Term (2014)

Medium Term (2015-

17)

Long Term (beyond

2017)

47

Actions/

Details

While levying penal charges as an isolated initiative is straight forward, we recommend

careful consideration of prior change management, prior infrastructure enablement and

communication plan.

We recommend co-ordination of this initiative with ‘Cost of Cash’, ‘e-threshold’, ‘Instant

Payment’, ‘Bill payments’, ‘Mobile payments’ and ‘PoS initiatives’ to ensure a proper

‘foundation’ which in our opinion would drive success of this initiative. We recommend an

umbrella / coordinated governance across the above initiatives under the aegis of a

‘Cashless Ghana’ initiative (or similarly named).

Exhibit 9 describes where penal pricing fitted into the overall cash-lite journey for Nigeria.

Rationale Triggers significant push towards non-cash methods while reducing cost of cash.

Exhibit 10: Anatomy of the cashless model in Nigeria

Sup

ply

Si

de

E-Sc

he

me

s

Envision Enable Engage

Ca

rro

tS

tic

k

2009 Cost of Cash for economy & projections

Banks not to provide ‘cash in

transit lodgment services’ from Jan’12 ( replaced by CBN licensed CIT providers)

3rd party cheques above N150,000 ineligible for

encashment OTC

Daily cumulative limit for

withdrawals and lodgments

Phases : Pilot @ Lagos - 85% of POS and 66% of cheques penetration.

Card Neutral PoS

NIP instant transfer11+ mobile players licensedE-bill PAY

FunnelingAlternateHandling

Pricing

PoS Training, Awareness

Alternate product fulfillment

De

man

d S

ide ‘Monday Column’ (Print)

Need Pricing Transition

Cash Charges kick-in after

3months of policy start date.

No reports to Central Bank on excess drawers.

PoS pricing 1.25%, max

N2k/txn

Endorsed and negotiated - PAX,Bitel, Ingenico, Verifone with 45k/terminal

TAT for complaints on e-channels e..g. 72 hours for ATM complaints

Pri

cin

g

Higher penal fees for withdrawal

Lower penal fees for deposits

Payments System management Bill and Financial system Ombudsman bill are with National assembly. Evidence act under review.

No job losses at bank level

Regular monitoring and oversight of banks to ensure adherence.

Stakeholder

group sessions

Main Trade / Market places W

ork

sho

pM

ee

tin

gs

Q&

A(F

M)

Q&

A a

t m

kts

- Anatomy of the Cash-less model in Nigeria -

Continuous engagement

48

4.2.6. Launch direct debit scheme



Current State

Direct debits in Ghana are available but like

many African countries form a very small

proportion of payments.

Inter-Bank direct debits are not generally used in

Ghana

Peer Practice

Direct debits for B2B and C2B are widely used in mature

markets and provide a ‘pull’ method for making regular

payments. They are very important in the cash flow of

small businesses such as gyms or other membership

based organisation that rely on a regular flow of

subscriptions. They are equally convenient for payments

such as gas and electricity payments by consumers and

businesses alike.

The UK model works on an exception basis under a direct

debit guarantee scheme whereby collections made

without a mandate or advised change in value are

reversed under the scheme rules.

The SEPA Direct debit scheme is more complex with a far

tighter control and communications of mandates between

parties.

Actions/

Details

We recommend an analysis into a Ghanaian scheme which can be provided through G-ACH.

We believe that giving a third party the ability to collect funds directly from a person’s bank

account may have some resistance in Ghana and so suggest that the instant bill alerting

mechanism be used to enable account holders to verify and approve a collection.

This can also be a discussion point with the Telco providers for post-pay plans and this may be

a catalyst to kick start the scheme. As is current practice in some countries such as the UK,

utility providers can provide discounts for payments made via direct debit to enable consumers

to sign up to the scheme.

A guarantee scheme along UK lines can also build trust in the scheme. In this scheme, any

unauthorised (e.g. without a mandate) collection is guaranteed to be repaid to the debited party.

Rationale

Simplification of regular payments

Improved cash flow for businesses

Is ‘bank friendly’ and can re-use ACH infrastructure.

Further reinforces the cash-lite agenda

4.2.7. Launch a multi-function Ghana card


Impact Medium-High Proposed Timelines 2016-18

Current State

Banks in Ghana issue cards today but they are not

used widely due to the lack of points of acceptance

Merchant service charges (msc) are high and

include interchange as per card scheme rules

Examples have been cited whereby cash is carried

internationally to pay for purchases, say from China.

Peer Practice

In addition to traditional co-branded cards, countries

such as France and especially China issue

monoline cards – Carte Bleu and China Union Pay

(CUP) respectively.

The country scheme can set the rules and in the

case of CUP.bi-lateral arrangements with other

national schemes enables international acceptance.

49

Actions/

Details

We recommend a discussion with Banks and merchants and if accepted, an analysis into a

Ghanaian specific card scheme that cooperates with China Union Pay and other monoline card

schemes where specific payment/trade flows exist.

Cards based on a national scheme can set rules for fees that are acceptable to merchants and

the card can also be a catalyst for other functions i.e. it should be a ,multi-function card from the

outset and support a loyalty rewards scheme, and if NFC enabled, transport payments. The

scheme should also enable a pre-paid card capability for international commercial purposes.

The loyalty capability could build up value on the card based on purchases made and could

include special promotions such as a cashback on purchases. This again would incentivise card

usage over cash or cheque at the point of sale.

Rationale

A National identity for Card based payments

Lower MSC’s

More than a payment method

Further reinforces the cash-lite agenda

4.2.8. EMV Cards

Initiative Category Technical Infrastructure Ease of Implementation Low


Current State

EMV cards are issued by commercial banks to

customers that are typically travelling out of Ghana.

Peer Practice

Nigeria: Migrated to EMV by September, 2010 (the

date was pushed by at least four times) migration

about 30million magnetic stripe cards.

Kenya: Kenyan banks are expected to move from

magnetic strip credit and debit cards to the new

Visa and MasterCard EMV chip and PIN standard

by March 31, 2014.

Actions/

Details

We recommend a medium term priority for EMV cards initiative. A timeline may be arrived by

the recommended “Payments Council” by comparing POS adoption and fraud and misuse

statistics. In the interim anti-fraud technology adoption by GhIPSS can shepherd the card

business.

Rationale

Lower fraud losses (typically ATM) when compared to magnetic stripe

Lower fraud losses in cardholder present transactions compared to signature

Tight authentication for ‘offline’ purchases (i.e. no online authorization)

50

4.2.9. Participate in West African interlinking of EFTPOS/ATM switches

Initiative Category Governance / Scheme /

Technical Infrastructure Ease of Implementation Medium

Impact High Proposed Timelines 2016-18

Current State

The principal vehicle for international card payments

or ATM cash withdrawals are the card schemes i.e.

Mastercard, Visa, Amex, etc.

BoG/GhIPSS would like to consider a linking of

Ezwitch and the equivalent systems in other West

African countries.

Peer Practice

The best example of International card usage is

CUP which is achieved by a series of bi-lateral

relationships.

Actions/

Details

We recommend

Ghana payment council should consider a scheme to link Ezwitch with other countries and

commence with a pilot to prove the concept.

A priority list of countries for which inter-linking is sought along CUP lines should be drawn up

as part of the payments council agenda.

This will be dependent on the availability of monoline bank cards as card scheme rules and

fees generally apply irrespective of whether the network is used for a co-branded card.

Determine settlement currency.

Align card enabled transformation initiatives (ATM, PoS, EMV, PCI, Regional acceptance)

with WAMZ payments agenda.

A separate working group is suggested for inter-country initiatives such as this.

Rationale

Enable economic uplift through trade improvement both regionally and with global trading

partners.

Enables consumers and corporates to buy goods and services in other countries.

Supports the cash-lite agenda

Enables cash withdrawals in local currency whilst in neighbouring countries.

51

4.2.10. Participate in West African RTGS payment interlinking


Technical Infrastructure Ease of Implementation Low


Current State

WAMZ (West African Monetary Zone) - A regional

co-operation group with the objective of achieving

monetary union was established in the year 2000.

The group comprises of leading West African

Nations of - Gambia, Guinea, Liberia, Nigeria and

Sierra Leone and Ghana.

Among other leading objectives, enabling cross

border payments and supporting infrastructures for

RTGS, ACH, EFT/POS/ATM pertain to the

payments domain.

Peer Practice

EAMZ: Kenya, Uganda, Tanzania, Burundi and

Rwanda comprise the East African Monetary Zone.

In November 2013 a 10 year roadmap was signed

to achieve ‘single currency’ for the Union. From a

payments perspective, - EAPS (East African

Payments System) went live in December

2013. It facilitates real-time transfer of large value

payments across borders via the interbank Swift

network. Rwanda and Burundi have not participated

in this system yet.

SADC-SIRESS. A South African initiative for an

integrated regional electronic settlement system.

The working group includes a broad range of

countries including East Africa and went live on 21st

July 2013 for South Africa, Namibia, Lesotho and

Swaziland where the ZAR is a common currency

and is the first stage of a broader program. Issues

around a common settlement currency need

resolution before a broader rollout.

Actions/

Details

We recommend

Ghana payment council should be represented within WAMZ payment committees.

Pursue RTGS interlinking (Decentralised / Distributed system) at the earliest.

Determine settlement currency, and use the original European TARGET interlinking approach

as a starting point, given the preferred WAMZ ‘loosely coupled’ option.

BoG might consider a pilot concept working with a neighbouring country such as Nigeria or

Togo on a bilateral basis.

Align card enabled transformation initiatives (ATM, PoS, EMV, PCI, Regional acceptance)

with WAMZ payments agenda.

Rationale

Secure funding from multilateral development banks (e.g. IMF, ADB, AfDB, World bank)

towards payments initiatives that are approved under the aegis of WAMZ initiative.

Enable economic benefits through trade improvement both inter-regionally and with global

trading partners.

Enables inter-regional trade to become easier and more efficient.

Enables further socio-economic developments through the harmonisation of common

interests such as trade tariffs, border controls with the integration of the telco and financial

infrastructure.

52

4.2.11. Recapitalize and commercialize GhIPSS stake in tranches in

favour of banks

Initiative Category Governance Ease of Implementation Low


Current State

GhIPSS is wholly owned by BoG.

Peer Practice

India: Stake in NPCI (National Payments

Corporation of India) is held by ten promoter banks.

NPCI is a not-for-profit company and shareholders

do not receive any dividend. Discussions are

underway to broad base NPCI’s shareholding. A two

tier model based on deposit base (Tier 1) and

payment volumes (Tier 2) is under consideration.

The additional capital will help NPCI to further

strengthen the retail payments infrastructure and

bring down transaction costs in the banking system.

South Africa: BankServAfrica is bank owned - four

large South African banks as well as a consortium of

lower volume South African banks housed in a

separate company called Dandyshelf 3 (Pty) Ltd.

UK: VocaLink is owned by a consortium of 16 banks

and building societies

Australia: Scheme level ownership is evidenced -

BPAY is owned by Big 4 banks, EFTPOS is owned

by 16 banks.

Nigeria: NIBSS is owned by all licensed banks and

discount houses in Nigeria, and the Central Bank of

Nigeria.


Q: We asked stakeholders, if BoG should divest stake

in GhIPSS?

A: 60% of the respondents agreed to this proposal.

Actions/

Details

We recommend BoG to move towards Bank ownership of processing infrastructure (i.e.

GhIPSS) through in a phased manner while unlocking value through channeling more payments

through the network.

This initiative should also align to identified funding needs to ensure most efficient deployment

of funds.

This may need to occur sooner than the date stated e.g. 2015, depending on the funding of

infrastructure projects related to the initiatives planned by the payments council.

Rationale Financial inflow to fund the roadmap

More skin in the game from banks is better for ‘commitment’.

a. Strongly agree

b. Agree

c. Neutral

d. Don’t agree

53

5. Innovation for 2019 and beyond

5.1. Introduction

This chapter describes further innovation that is seen as longer term and in essence falls

into the ‘nice to have’ rather than the ‘essential to have’ category.

5.2. Initiatives

5.2.1. Multi-currency payments on mobile

Initiative Category Scheme / Technical

Infrastructure Ease of Implementation Low


Current State

Not available.

Peer Practice

Making or receiving international remittances in a

foreign currency direct as m-money as in Kenya.

Using a Ghana e-wallet in another country either via

a Telco provider or attaching a credit card to a wallet

of using Visa Paywave or similar.

Actions/

Details

We recommend

That this is considered a longer term objective and an extension of intra-Ghana mobile

schemes.

This should be considered in the context of alternative emerging schemes such as interlinked

ATM/POS switches which could have a dependency.

Rationale Provides cross-border usage of m-money

Secure and convenient.

5.2.2. IBAN / Numbering


Technical Infrastructure Ease of Implementation Low


Current State

Local bank and Account numbering is adopted.

Peer Practice

The IBAN numbering scheme has been adopted as

a standard within the European Economic area and

is mandatory for SEPA Credit transfers and Direct

debit collections.

IBAN is mandatory in the UAE.

54

Actions/

Details

We recommend

That this is considered a longer term objective to standardise account number identification.

This should be an agenda item for WAMZ and adopted as a standard when national RTGS’s

are interlinked and where the benefits of standardisation would be accrued.

Monitor the benefits and issues in rolling this out, and learn from experience of the UAE and

UK.

Rationale

Enables the standardisation of Bank and account numbers for clients on an international

basis.

Reduction in errors, less repairs.

5.2.3. Enable NFC payments

Initiative Category Technical Infrastructure

Commercial Ease of Implementation Hard

Impact Low (depending on adoption

rates) Proposed Timelines 2019-20

Current State

NFC payments are being touted and heralded as

the “next big thing” in payments, however adoption

levels are low and technical problems with rolling

out the necessary infrastructure are strife.

However some niche-specific schemes such as

transportation cards, venue payments at concerts

and events etc, are being moderately successful

Peer Practice

UK Transport cards such as Oyster cards used on

London transport.

Barclaycard NFC enabled cards at POS and trials at

Retailers such as Boots (pharmacy chain)..

Voice of Stakeholder (NFC Payments)

Q: We asked whether BoG should rank the introduction

of NFC payments as important in the near, short or

medium term.

A: About 60% of respondents proposed to wait for the

medium term.

Actions/

Details

With respect to NFC, we recommend a “wait and see” approach. The costs of rolling out NFC

enabled infrastructure are so high that return on investment could be doubtful. There are

however opportunities for sector specific initiatives: e.g. transportation or large events.

Rationale High costs of NFC infrastructure

No real successful NFC payment implementations.

Near Term (6months)

Short Term -2014

Medium Term (2015-

17)

55

5.2.4. Account switching



Current State

There is no switching service.

Peer Practice

UK: The new Current Account Switch Service

(seven day service) was launched on 16 September

2013. The system provides for central account

switching system and also a re-direction service.

EU: In May 2013, the EU published a proposal for a

Directive that includes account switching alongside

other programmes. The service would enable PCA

(Payment Current Accounts) switching to be made

simpler.


Q: We asked stakeholders, when to adopt Account

switching initiative- in the near, medium or long term?

A: A little fewer than 50% felt that it should be a short

term initiative, while remaining earmarked it to be a

medium to long term initiative.

Actions/

Details

With high un-banked population, we believe switching enablement is a longer term priority.

BoG should debate the need for account number portability in addition to transferring regular

payments and funds. However this is probably too complex and doesn’t provide an adequate

ROI.

Rationale Switching enables competition and delivers choice to customers.

5.2.5. ISO 20022


Impact Low to Medium Proposed Timelines 2019-20

Current State

SWIFT FIN ‘Y’ copy is the standard messaging

standard prevalent.

Peer Practice

EU: The SEPA initiative is built upon messages

based on XML standard enshrined in the ISO

20022.

SWIFT has published an adoption dashboard called

‘mApp’. As per the map 60+ initiatives are currently

underway (registered at www.ISO20022.org)

Account Switching

Near Term (6months)

Short Term (2014)

Medium Term (2015-

17)

Long Term (beyond

2017)

http://www.iso20022.org/

56


Q: We asked stakeholders, when to adopt ISO20022 -

in the near, medium or long term?

A: A little over 50% felt that it should be a short term

initiative, while remaining earmarked it to be a medium

term initiative.

Actions/

Details

We recommend a “wait and watch” approach. We believe the current infrastructure is serving

well and ‘adoption’ is a core challenge than ‘refresh’. BoG can align the migration to peer

adoption in Africa, whether or not aligned with regional settlement schemes. Support from

SWIFT (i.e. Translation and mapping rules, machine readable standards definition, middleware

and interface products, training and implementation consultancy) may be utilized appropriately.

Rationale

High costs of change

May not be a priority for Ghana in the medium term. More immediate priorities of efficiency

and inclusion.

5.2.6. Separation of Scheme from Infrastructure

Initiative Category Scheme Ease of Implementation Medium

Impact Low to Medium Proposed Timelines 2019-20

Current State

There is no separation of scheme and infrastructure.

Definition and delivery is rolled into BoG and

GhIPSS (fully owned by BoG)

Scheme: A scheme is a set of rules, practices and

standards agreed between providers of payment

services.

Infrastructure: refer to the underlying delivery

systems and processing platforms.

Peer Practice

EU: With SEPA, the management of the schemes

will be separated from the processing infrastructure.

This will enable infrastructure providers to offer their

services to all payment service providers in SEPA.

For instance, card processors will be able to serve

different card schemes and acquirers throughout

SEPA. This will increase business opportunities and

competition for infrastructure providers.

Australia : The recommendations of RTPC-Real

time payments committee to the PSB- Payments

System Board included a clear recommendation of

scheme from Infrastructure

Actions/

Details

We believe payments business in Ghana is at least 5 years away from the need to separate

scheme from infrastructure.

Rationale

Long term stability and competition enablement.

Interoperability between providers enables standardization of services and value added

services (as a differentiator)

ISO 20022 messaging

Near Term (6months)

Short Term (2014)


Long Term (beyond

2017)

57

6. A Strategic Roadmap

6.1. Introduction

The intent of this section is to present graphically the roadmap from two perspectives and

answer to specific questions namely:-

What are the initiatives that will provide quick wins i.e. have a high level of impact, but are

low in complexity and thus relatively quick to implement in terms of effort?

What is the timeline that takes into account the dependencies of each initiative on each

other?

Section 6.2 describes in the form of matrices, the relationship of impact and effort required

for each of the main phases of the report from which quick wins can be identified. Overall

this maps onto the main phases described within the report and covers the specific initiatives

that are recommended during those phases i.e. what actions are to be taken to meet the

goals and principles that are to be agreed by the Payments council.

Section 6.3 describes the roadmap more from a high level implementation perspective

placing specific initiatives into the time periods stated in the presentation deck which would

map onto specific subcommittees within the payments council.

The Payments council itself would be the highest level of committee and would set itself

terms of reference and goals and objectives, a number of which would already be defined.

This would be defined in the Payment council’s constitution. A number of references are

given in Appendix 3 as to what other countries have done, but the South African example is

a good one to consider.

To organise, manage and regulate in relation to its Members all matters affecting payment instructions, including its Members' participation in the National Payments system, by –

adoption of a strategic focus on payments, including payment instruments and payment systems, whilst simultaneously aligning it to national strategy;

focusing on national interest, but simultaneously considering the influences, conditions and developments in the Southern African region and the rest of the world;

promoting international liaison and understanding of global developments in payments, payment instruments and payment systems;

promoting a safe and sound payment system;

focusing on the End-to-End Payment Value Chain and on the participants in such a process;

promoting transparency in the End-to-End Payment Value Chain, where

appropriate;

58

making and facilitating decisions in the payments industry;

guiding and supporting all participants in the NPS with reference to innovation within the Regulatory Framework of the NPS;

adopting and maintaining appropriate structures and frameworks for purposes of monitoring and governance;

promoting, proposing, supporting or opposing as may be deemed to be appropriate and expedient any proposed legislative or other measures affecting the interests of the Members and the NPS;

co-operating with other organisations or entities which are in existence or which may be established to deal with matters which affect PASA, its Members or the NPS;

creating a forum through which all Members can collectively voice and address issues of common interest and concern;

seeking direct representation on all forums which directly affect the Members; acting as a medium for communication by its Members with the South African

Government, the Reserve Bank, the Registrar of Banks, the Co-operative Bank Supervisors, the Registrar of Financial Institutions, any financial or other exchange, other public bodies, authorities and officials, the news media, the general public and other private associations and institutions;

doing such other lawful things as may appear to be in the interests of PASA, the NPS and its Members acting within the Regulatory Framework of the NPS and which are not inconsistent with the objectives or any matter specifically provided for in this constitution

The Payments council is the principal decision making body with a broad church of

membership for those who run the financial systems, provide financial services and

consumers of those services. This body would be principally concerned with Commercial

and Governance matters.

From this specific Schemes would be defined many of which would be existing schemes

such as National clearing or RTGS, which can be considered to be a foundation from which

enhancements can be delivered i.e. making better use of what is there and scheme rules

would be defined such as limits, operating times, service times. RBI guidelines as per the

National payment corporation of India are good examples as are the UK faster payments or

BACS scheme details. The scheme itself would be further defined through the sub-

committees i.e Operations, Pricing, Standards.

Pricing would cover such matters as maximum and minimum fees that banks can charge to

its customer segments, whether a service is a flat fee or ad-valorem based on the value of

the payment. Penal fees designed to incentivise the drive from cash to an cash-lite society

would also be within the remit.

Operations would focus on matters such as service times (e.g. UK Faster payments),

availability of the service (e.g. 24x7 or start/end of day cut off times, but also in how the

scheme will be operated and by whom. In Europe and a number of countries the Scheme is

separate from the operator and for the Single European Payment Area (SEPA) there are

multiple operators (PE-ach).

Standards would be set as to how banks and bank users for example would communicate

with each other such as ePOS, e-wallet payments, ACH direct credits, SWIFT FIN or MX.

59

The standards committee would ensure that standards are defined that meet the needs of

the payment system users (eg extended narratives for more effective accounts receivable

reconciliation as in ISO20022).

Of course this drives the need for automation, but what realistically should be automated to

best meet the needs of the stakeholders at a workable cost and under what operating model

as defined by the operations sub-committee.

The technology sub-committee would define the technology to be used to deliver the

solution including architecture leading to package selection and the Technical

infrastructure needed to operate the payment systems that will support the operation of the

scheme.

The Schemes and the constitution itself will require a legal framework to underpin its

operation and to enforce specific pricing or other aspects of its operation. The legal sub-

committee would concern itself with such matters. Consider the European Payments council

created the SEPA direct debit and credit transfer schemes and the Payment services

directive underpinned this and all payments between participants within the European

Economic area.

Change management will be required to inform enthuse and educate the stakeholders and

their customers on the benefits of the scheme and to manage the introduction and cutover

from old to enhanced, or completely new schemes. A great deal of planning will be required

to be done in this area. Responsibility for this can be within the operations and technology

sub-committees but accountability would be at the highest level as this is critical.

Exact implementation targets will need to be investigated in detail based on scope and effort

and priorities set by the Payments council after due consultation with the stakeholders.

On these charts some placeholders are shown for specific milestones in achieving a cash-

lite Ghana with a high level of financial inclusion. These milestones will need to be agreed by

the payments council and in all likelihood will include a series of interim milestones that can

be measured against realistic targets. As such a feedback improvement process and a

quality based metric approach will be beneficial to the success of this important national

programme.

60

6.2. Quick wins by classification

Exhibit 11: Ghana Strategic Payments Roadmap: Laying the Foundation

Exhibit 12: Ghana Strategic Payments Roadmap: Making better use of what is already there

Implementation Effort

Str

ate

gic

Im

pa

ct

Low High

Lo

wH

igh

Governance Scheme Technical

Inf rastructure

Change

Management

Commercial

Ghana Payments Council

MFS Circular

Pricing Caps and Display

PoS Acceptance guidelines

Enable TSA regime

‘Cost of cash’ Index

Publish payments newsletters

Stakeholder Communication plan

Fraud and misuse reporting

NCA reachout

eMoneyRegulation

Security certification

epayments code and regulation

MoF Buy-in


Str

ate

gic

Im

pa

ct

Low High

Lo

wH

igh


Inf rastructure

Change

Management

Commercial

Reinvigorate mobile payments

Value added services on current schemes

Employees paid electronically

E-Govt. initiatives

Hybrid or mobile Point Of Sale

PoS deal negotiation

ATM & Activity monitoring

EMV Cards

Supporting legal framework (WB)

ePaymentonly threshold

61

Exhibit 13: Ghana Strategic Payments Roadmap: Building the Future


Str

ate

gic

Im

pa

ct

Low High

Lo

wH

igh


Inf rastructure

Change

Management

Commercial

Instant Payment scheme

Bill Pay scheme

collaborative e-commerce scheme

Penal pricing for cash & paper

Re-launch Direct Debit scheme

Multi-functional Ghana Card

WAMZ - eftpos/ATM interlinking

WAMZ - RTGS interlinking

62

Exhibit 14: Ghana Strategic Payments Roadmap: Innovation 2019 and beyond

6.3. Roadmap by timescale

This section

Exhibit 15: Ghana: 5 year Payments Roadmap – Legal

There will need to be sanctions for non-compliance i.e. fines, for ‘sharp practice’ and an

independent ‘ombudsman’ or arbitration panel to resolve inter-bank disputes


Str

ate

gic

Im

pa

ct

Low High

Lo

wH

igh


Inf rastructure

Change

Management

Commercial

IBAN / Numbering

NFC payments

Account Switching

ISO 20022

Separation of Scheme from Infrastructure

Recapitalise and commercialise GhIPSS stake in tranches in

favour of banks

Benefits / Guiding PrinciplesH1 2014 H2 2014 2015 2016 2017 2018

2019 Onwards

Step Stretch Leap

Pilot ‘Cash-lite Ghana’

Initiative

ePayments & Money Law (incl BoE,1961 updation)

MFS Circular

Pricing Caps & Display

circular

Enable ‘TSA’ regulation

Penal Pricing for cash & Paper

PoS & Acceptance guidelines

Ombudsman for Payments

Mobile as POS

Guidelines

E-payment only

threshold

Supporting laws – privacy, data protection

Firm up the framework

Early Signaling to stakeholders

Blend Carrot and Stick Approach

Enable jurisdiction sanctity

Enable customer protection

63

Exhibit 16: Ghana: 5 year Payments Roadmap – Commercial & Governance

The payments council will be a forum for consultation but the BoG should have the final say

with a clearly understood role and mandate for schemes and standards.

Exhibit 17: Ghana: 5 year Payments Roadmap – Technical Infrastructure

Benefits / Guiding PrinciplesH12014 H22014 2015 2016 2017 2018

2019 Onwards

Step Stretch Leap


Initiative

Launch Ghana

Payments

CouncilRecapitalise and commercialiseGhIPSS Stake

NCA- High Availability Bandwidth

Multi-bank cash handling

MoU with NSA (MFS)

Enable inclusive forums &

committees

Inclusive ownership & funding of

infrastructure

Co-develop backbone

infrastructure

Direct collaborative infrastructure

for cash

Benefits / Guiding Principles

PCI Compliance(PADSS,PCI-PED,PCI-DSS)

PoS deal negotiation

PoS Roll-out

PoS Roll-out(phase 2)

PoS density of >10/100k

Hybrid POS

Integration with other Infrastructures (African WAMZ)

Bank level PCI Compliance

EMV Cards

ATM & Activity monitoring

Enable Regional payments

alignment

Enable and ensure system

integrity

Trigger non-cash acceptance

infrastructure

H12014 H22014 2015 2016 2017 20182019

Onwards

Step Stretch Leap


Initiative

64

Exhibit 18: Ghana: 5 year Payments Roadmap – Scheme

Exhibit 19: Ghana: 5 year Payments Roadmap – Change Management

Greater publicized BoG engagement and regulation/oversight will be a positive step to

enable change.


H12014 H22014 2015 2016 2017 20182019

Onwards

Step Stretch Leap


Initiative

Readiness for Cashless initiative

Spruce up as-is infrastructure

Set up Anti-fraud capability at

collaborative space

Enable Social Inclusion and next

generation payments through

power of ‘Mobile’ & e-commerce

Standardisation and competition

improvement

Launch GIP

Mandate mgmt

Bill Pay scheme

Standardize

Forms

USD/FCY

mobile

payments

Intraday

batches(CT,DD)

Advance submission

New - G2C /

B2C scheme

Uniform Account # policy

Account

Switching

enablement

ISO 20022

Cheque CAGR<2%

Anti-fraud tech

@ GhIPSS

Launch Mobile Scheme

RTGS lower limit

Fin Inclusion targets met

Reporting

NFC Payments

ePayment gateway

Separate

scheme &

Infrastructure


H12014 H22014 2015 2016 2017 20182019

Onwards

Step Stretch Leap

Pilot ‘Cashless Ghana’

Initiative

Improve Awareness

‘Cost of

Cash’ Index

Multi-channel

Display & 1

minute guides

Improve awareness on dis-

benefits and costs of cash

Payments Newsletter

(Qtrly)

1-2 minute video’s

Fraud & mis-

use reporting

CashLesspilot

Campaign

Cashless - ongoing campaign

‘Cashless Ghana’ Initiative, targets met (Wave 1)

PSU transition to non-cash

Launch campaign to support

initiatives

E-Payments promotion through a

combination of education, training

and

65

Appendix 1: Methodology

An iterative and consultative approach was adopted to put together a strategic payments

roadmap for the Republic of Ghana. The details of the methodology across three phases are

as under:

Phase 1 -

As-is Baseline

An analysis of current state of payments in the Republic of Ghana was undertaken through

data collection on the economic, banking and payments indicators :

Financial and economic indicators

Current payments schemes

CAGR of payment schemes

Current pricing of payment schemes / products

Results of a prior survey by Bank of Ghana (early 2013) were also adopted for further

analysis and validation.

Phase 2 - Ideation Hypothesis on a range of payments solutions required for payments landscape

transformation were captured.

These were then benchmarked against similar initiatives designed and developed by other

leading countries like Australia, UK, India (from Outside Africa) and with Nigeria, Kenya,

Tanzania and South Africa (from within Africa)

A consolidated list of initiatives was thus customized for Ghana through discussions with

BoG / GhIPSS representatives. A questionnaire was developed to capture feedback from

various stakeholder groups (Bank of Ghana, Government Agencies e.g. Ministry of

Finance etc, Banks, Telcoa, corporate, retailers, etc)

Phase 3 -

Validation and

Feedback

The suggested initiatives along with good practices from other markets were presented in

a stakeholder workshop. Various inputs and feedback were captured. To also statistically

capture the feedback the questionnaire was administered. The survey results, feedback

and research (performed in the Ideation phase) have been blended to deliver this

payments roadmap for Ghana.

66

Appendix 2: Abbreviations and Acronyms

Abbreviation Definition

ACH Automated Clearing House

ADB Asian Development Bank

AfDB African Development Bank

Airtel Bharti Airtel Limited is a leading global telecommunications company with operations in

countries across Asia and Africa headquartered in New Delhi, India

AML Anti Money Laundering

APCA Australia Payments Clearing Association

ATM Automated Teller Machine

B2B Business to Business

BAM Business Activity Monitoring

BAU Business As Usual

BB Branchless Banking

BCB Banco Central do Brasil (Brazil’s Central Bank)

BoG Bank of Ghana

BPAY Australia’s Bill PAYment service

C2B Customer to Business

CAGR Compound Annual Growth Rate

CapEx Capital Expenditure

CBK Central Bank of Kenya

CBN Central Bank of Nigeria

CCC Cheque Codeline Clearing

CCK Communications Commission of Kenya

CEO Chief Executive Officer

Chip and PIN Chip and PIN is the brand name adopted by the banking for the rollout of the EMV smart card

payment system for credit, debit and ATM cards. The word "Chip" refers to a computer chip

embedded in the smartcard; the word PIN refers to a Personal Identification Number that must

be supplied by the customer. "Chip and PIN" is also used in a generic sense to mean any EMV

smart card technology which relies on an embedded chip and a PIN

CIT Cash In Transit operators

CNP Card Not Present fraud

CRN Customer Reference Number

67


CT Credit Transfer

CUP China Union Pay card

DD Direct Debit

DSS Data Security Standard

EAMZ East African Monetary Zone

EAPS East African Payment System

EBA European Banking Association

EBPP Electronic Bill Presentment and Payment

e-Documents Electronic Documents

EFT Electronic Funds Transfer

e-money Electronic Money

EMV EMV (stands for Europay, MasterCard and Visa) is a global security standard for chip card

technology

e-Payments Electronic Payments

EU European Union

e-zwich e-zwich is the brand name for the Ghana’s National Switch and Smart card payment system

FAQ Frequently Asked Question

FI Financial Institution

FPS Faster Payment Scheme

FTE Full Time Employees

GACH Ghana Automated Clearing House

GDP Gross Domestic Product

GHC Ghanian Cedi (ISO currency Code)

GhIPSS Ghana interbank Payment and Settlement Systems

gh-link gh-link™ is GhIPSS’ interbank switching and processing system which interconnects switches

of financial institutions and systems of third party institutions.

GIS Ghana Interbank Settlement system

GSM GSM (Global System for Mobile Communications, originally Group Spécial Mobile), is a

standard developed by the European Telecommunications Standards Institute (ETSI) to

describe protocols for second generation (2G) digital cellular networks used by mobile phones.

HVPS High Value Payment System

IB Internet Banking

IBAN International Bank Account Number

IMF International Monetary Fund

IMPS Immediate Payments Service (IMPS) in India offers an instant, 24X7, interbank electronic fund

transfer service through mobile phones

ISO International Organization for Standardization

68


ITMX Thailand’s Interbank Transaction Management and eXchange

KYC Know Your Customer

LVPS Low Value Payment System

MFS Mobile Financial Services

MHITS mHITs (Mobile Handset Initiated TransactionS) is an Australia micropayment service which

allows users to send and receive money via SMS

MICR Magnetic Ink Character Recognition

MNO Mobile Network Operator

MoF Ministry of Finance

MoU Memorandum of Understanding

m-Payment Mobile Payment

MPESA MPESA (M for mobile, PESA is Swahili for money) is a mobile-phone based money transfer

and microfinancing service for Safaricom and Vodacom, the largest mobile network operators

in Kenya and Tanzania

M-POS Mobile Point of Sale

MSC Merchant Service Charge

MTN MTN Group is a leading emerging markets mobile operator in countries across Africa and the

Middle East

NCA National Communication Authority of Ghana

NEFT National Electronic Funds Transfer system of India

NFC Near Field Communication

NIBSS Nigeria Inter-Bank Settlement System

NIP Nigerian NIBSS Instant Payments service

NPCI National Payments Corporation of India

NPS National Payment System

NPSC National Payment System Council

OpEx Operational Expenditure

OTC Over The Counter

P2P Person to Person

PAGA PAGA is Mobile Money Transfer Service in Nigeria

PCA Payment Current Account

PCI Payment Card Industry

PNDC Provisional National Defense Council

POS Point Of Sale

PSB Reserve Bank of Australia’s Payments System Board

PSP Payment Service Provider

PSS Payment and Settlement System

69


PTSA Payment Terminal Service Aggregator

Q&A Questions and Answers

QSA Qualified Security Assessor

RBA Reserve Bank of Australia

RBI Reserve Bank of India

RTGS Real Time Gross Settlement system

RTI Real Time Information

RTPC Australia’s Real Time Payment Committee

SEPA Single European Payments Area

Sh Kenyan Shilling

SIM Subscriber Identity Module

SME Small and Medium Enterprises

SMS Short Message Service

SWIFT Society for Worldwide Interbank Financial Telecommunication (SWIFT)

TARGET Trans-european Automated Real-time Gross settlement Express Transfer system

TAT Turn Around Time

TCRA Tanzania Communications Regulatory Authority

Telecos Telecommunication Companies

TiGO Millicom offers digital lifestyle products and services to emerging markets through service

brand TiGO, which is derived from the Spanish word ‘contigo’ meaning ‘with you’, in Latin

America and Africa to stay connected, primarily through their mobile devices

TISS Tanzania Interbank Settlement System

TSA Treasury Single Account

UAE United Arab Emirates

UK United Kingdom

VAS Value Added Service

Vocalink Operator of UK National Payments Infrastructure

WAMZ West African Monetary Zone

XML EXtensible Markup Language

ZAPP Vocalink’s Zapp is a new way to pay using mobile phone and existing bank account

70

Appendix 3: References

Capgemini, Finance Transformation Benchmarking Study, 2005.

Capgemini, World Payments Report 2006, September 2006.

Capgemini, World Payments Report 2013, September 2013

PWC, Ghana Banking Survey, 2011

Lions go digital: The Internet’s transformative potential in Africa, Mckinsey Global

Institute November 2013

Population & Housing Census, Ghana Statistical Service, May 2012

M-Money Channel Distribution Case - Tanzania, International Financial Corporation,

World Bank Group

EBA Insight, April 2013

iDeal factsheet, http://www.currence.nl/Downloads/iD_factsheet_UK.pdf

Nigeria Payments systems http://www.nibss-plc.com/services/,

Tanzania payments statistics http://www.bot-tz.org/PaymentSystem/statistics.asp

Payments council articles and documents

South Africa (PASA)

http://www.pasa.org.za/Documents/PASA%20Constitution.pdf http://www.pasa.org.za/structure_council.html

Nigeria

http://www.cbn.gov.ng/icps2013/papers/NIGERIA_PAYMENTS_SYSTEM_VISION_2020[v2].pdf (see page 39-45)

Tanzania https://www.bot-tz.org/PaymentSystem/Y2005Vjan2000.pdf (see page 18 onwards)

Kosovo

http://www.bqk-kos.org/repository/docs/SistemiIPagesave/TOR_NATIONAL_PAYMENT_COUNCIL.pdf

http://www.currence.nl/Downloads/iD_factsheet_UK.pdf

http://www.nibss-plc.com/services/

http://www.bot-tz.org/PaymentSystem/statistics.asp

http://www.pasa.org.za/Documents/PASA%20Constitution.pdf

http://www.pasa.org.za/structure_council.html

http://www.cbn.gov.ng/icps2013/papers/NIGERIA_PAYMENTS_SYSTEM_VISION_2020%5bv2%5d.pdf

http://www.cbn.gov.ng/icps2013/papers/NIGERIA_PAYMENTS_SYSTEM_VISION_2020%5bv2%5d.pdf

https://www.bot-tz.org/PaymentSystem/Y2005Vjan2000.pdf




71

UK

http://www.paymentscouncil.org,uk

European Payments council (EPC)

http://www.europeanpaymentscouncil.eu

India

http://npci.org.in

http://www.paymentscouncil.org,uk/

http://www.europeanpaymentscouncil.eu/

http://npci.org.in/

In collaboration with