[ad_1]
The Network of Communications Reporter (NCR) is calling on the financial sector industry regulator, Bank of Ghana (BoG) to, as a matter of urgency, intervene to have MTN MobileMoney Limited (MML) to reconsider the increase in mobile money cash out transaction fees.
The MML had indicated that beginning July 1, 2023, mobile money cash out transactions of up to GHS2,000 will attract a 1% fee. Again, from GHS2,000 upward, the fee remains fixed at GHS20.
The new fee means MTN is increasing its maximum fee on cash out transaction by a significant 100%, from the current maximum fee of GHS10 to GHS20.
The NCR is aware that, following media reports initiated by one of its prominent members, MML has put the planned increase on hold until further notice, but in order for the company to shelve its intended move, “we want the BoG to engage MML on the way forward to protect the gains made in the area of financial inclusion.”
A statement from NCR, jointly signed by the Dean Charles Benoni Okine, and Vice Dean/Spokesperson, Samuel Dowuona said “gauging the mood of consumers of the mobile money services, we are concerned that if the planned fee increase is not suspended indefinitely, it will create more problems for consumers.”
“We recall that the last time MTN suspended a planned price increase for data bundles until further notice, it later came back and effected the increases and that development is the reason the NCR expects Bank of Ghana to intervene to ensure that, the past experience is not repeated this time round,” it said.
While the NCR fully respects the right of MTN to review its services charges, “we are of the firm belief that given the current harsh economic conditions, characterized by skyrocketing inflation, which has resulted in ever-increasing prices of goods and services, low incomes and rampant job losses, this is not a time to over burden Ghanaians with additional service charges on mobile money transactions.”
Merchants Commissions
The statement said, NCR has taken note of the fact that MML is compelled to increase cash out transaction fee because of the demands by mobile money agents for their commissions to be increased.
The commissions, according the agents, have remained static since the inception of mobile money in 2009, and they attribute that to the fact that service charges have never been reviewed since the inception of mobile money.
Exponential growth in adoption and Usage
But NCR noted that there has been exponential growth in the adoption and usage of digital finance in Ghana over the years, with MTN alone raking in about 13 million customers.
The growth in adoption and usage, NCR said, has deepened financial inclusion in the country significantly, and that is fuelling the advancement of Ghana’s digital transformation agenda.
“Affordability is critical to financial inclusion and as the adoption and usage of digital financial services increases, it is expected that cost of usage will reduce considerably as industry players recoup their investments leveraging economies of scale,” the statement said.
NCR therefore finds it out of sync for no less a player than the market leader to rather opt for a service fee increase at a time when fees should be going down.
“We, therefore, urge the Bank of Ghana to intervene and shepherd MML, its agents and all other industry players away from any service charge increase, in the interest of consolidating the gains made in financial inclusion in the country,” the statement said.
Whereas MTN has reduced its mobile money transfer fees from 1% to 0.75%, others like Vodafone and GhanaPay have actually zero-rated transfer fees, all in the spirit of consolidating the gain made in financial inclusion.
“We expect the industry regulator to provide the necessary guidance to ensure that no one player derails the direction of the train. There should be other innovative ways for any industry player to raise and share revenue with its stakeholders without necessarily increasing transaction fees under the current circumstances,” the statement said.
[ad_2]
Source link