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MTN MobileMoney Limited (MTN MoMo) is actively considering the possibility of decreasing its service fees with the aim of attracting more users and fostering the adoption of digital payments in Ghana.
With an impressive count of around 14 million active Mobile Money customers as of June this year, MTN MoMo’s forward-looking strategy involves embracing innovative approaches to pricing that not only safeguard their business interests but also drive financial inclusion.
Silvia Otuo Acheampong, the Head of Products and Services at Mobile Money Limited, emphasized the need for a potential pricing adjustment: “We actually have not changed our pricing for a very long time but we know it has to be reduced because the demand is high. We were discussing our strategy for next year, and one thing that kept coming through was reviewing our pricing.”
She shared these insights during the MoMo Stakeholders Forum, a gathering organized by Mobile Money Limited under the theme “Addressing Barriers to Digital Payments Adoption in Ghana.” At the event, key stakeholders like banks, fintech companies, Mobile Network Operators (MNOs), and the Bank of Ghana aligned their efforts to overcome obstacles to inclusive digital payments.
Speaking on behalf of Mr. Shaibu Haruna, the CEO of Mobile Money Limited, Sylvia Otuo Acheampong conveyed their intent to engage customers and introduce dynamic pricing. This initiative, she assured, would be mutually beneficial for all parties involved.
Acheampong pointed out that cost has often been a hindrance to digital payment adoption, as individuals are reluctant to incur charges for activities that have become a part of their lifestyle. She urged fintech companies and MNOs to collaborate in reducing costs and enhancing the overall digital experience for customers.
Stressing the importance of collaboration, she stated, “Consistent partnership is central to any ecosystem and we the key players must constantly collaborate to bridge the gap in the digital financial space, fight fraud and promote education so we don’t have different agendas being pushed by different partners.”
MTN has already taken steps to lower money transfer fees to 0.75%, in contrast to the 1% fee charged by others. Meanwhile, Vodafone Cash and GhanaPay offer completely free transfers across all networks.
However, MTN faced public backlash when it attempted to raise maximum cash out fees from ghs10 to ghs20, eventually reversing the decision due to widespread outcry.
Besides pricing, the digital financial space in Ghana faces challenges related to fraud and complexities. Kwame Oppong, Director of Fintech & Innovation at the Bank of Ghana, emphasized the importance of key policy pillars, including simplified onboarding, improved access to basic services, consumer education, consumer recourse mechanisms, data privacy, protection, and market supervision.
Achie Hesse, CEO of Ghana Interbank Payments and Settlement System (GhiPSS), urged stakeholders to focus on segments of the population not yet part of the digital space and address their unique payment needs. He emphasized the importance of offering incentives to encourage the informal sector to transition from cash-based systems to digital payments.
MTN Mobile Money Limited currently boasts approximately 150,000 active merchants accepting mobile money, 280,000 agents conducting active business, and aims to sustain a 20 percent year-on-year growth.
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