Business News of Thursday, 18 August 2016
The decision by the government to allow the use of the biometric payment system, e-zwich for a number of its interventions is yielding positive results.
It led to an impressive growth in the value and volume of transactions the platform, which is operated by the Ghana Interbank Payment and Settlement Systems (GhIPSS).
The half-year report released by the GhIPSS showed that the value of the e-zwich transaction went up by 213 per cent from GH¢ 277 million in the first half of 2015 to GH¢867 million in June, this year.
The volume of e-zwich transaction also went up by 109 per cent from 800,000 to 1.8 million transactions.
Reason for growth
The jump in the value and volume of e-zwich transactions followed government’s decision to use the biometric payment system for a number of its social interventions, including payment of school feeding caterers and beneficiaries of the Livelihood Empowerment Against Poverty (LEAP) programme.
The e-zwich is also used in paying National Service allowances and student loans.
The e-zwich system has proven to be one of the most effective ways to detect payroll fraud and impersonation.
It also helps to prevent a situation where some unscrupulous officials make unauthorised deductions from monies meant for beneficiaries of these social interventions.
The Chief Executive of the GhIPSS, Mr Archie Hesse, said his outfit was pleased with the growth in e-zwich transactions.
He also predicted that the payment system would see further growth in the coming years.
As a result, Mr Hesse encouraged companies faced with payroll challenges to use the e-zwich to clean up their system.
He said the doors of the GhIPSS were opened and they will readily engage with organisations that want to use the biometric payment system.
The CEO also challenged financial institutions to ensure that they train enough of their staff to know how to operate the e-zwich Point of Sales (POS) devices so that they can constantly provide the service to the public.
He was grateful to financial institutions who ensure regular e-zwich service and said that the GhIPSS would use the upcoming Ghana Banking Awards to recognise them.