Godwill Arthur-Mensah, GNA
Accra, March 25, GNA
– Vice President Dr Mahamudu Bawumia has acknowledged the adverse effects of
COVID-19 on both local and global economies, saying it will result in low
revenue mobilisation, as prices of crude oil slump on the world market.
Dr Bawumia said this
when he launched the Universal QR Code and Proxy Pay in Accra on Wednesday.
Besides, the
additional funds that must be found to spend on fighting the disease, we’re
losing revenues as the prices of crude oil slumps and business activity both
external and internal are negatively affected.
“These are
truly very challenging times, but I am hopeful that together we shall weather
the storm,” the Vice President noted.
The Universal QR
Code will make it possible for all merchants, service providers and
institutions to receive payments from banks, ezwich accounts, mobile money
wallets or internationally issued visa or Master Cards instantly.
The QR Code was
developed by the Bank of Ghana (BoG) through the Ghana Inter-bank Payment
System (Ghpss), and would be issued to merchants by universal banks, rural
banks, savings and loans companies, telecos and Fintechs.
The launch was
streamed live on the Vice President’s Facebook Page, in compliance with the
President’s social distancing directive to curb the spread of the COVID-19
pandemic.
The Vice President
said in view of the changing trend of trading worldwide, it was imperative for
institutions to be innovative and introduce new products and services to meet
the needs of their clients.
The universal QR
code is the world’s first interoperable payment acceptance solution and
provides customers with an easy option for digital payment on business
transactions, which reduces the technological challenges associated with
operating cash-lite society.
The universal QR
code will allow merchants to receive digital payments without the use of Point
of Sale devices and countries that recently introduced the Code platforms
include Singapore, India and China.
“Any merchant can
have a universal QR Code including; chop bar operators, food vendors, barbers,
carpenters or masons musicians, shoe shine boys, khebab sellers, market
traders, trotros, taxis, churches, mosques, schools, funeral committees,
wedding organizers, basically, any business,” Dr Bawumia explained.
“Once a merchant has
a QR Code, the customer can scan the code (for a smart phone) or dial the USSD
number to make payment.
“The customer will
make have to enter and confirm the amount so no one can cheat you. Once the
customer confirms the payment, the merchant will receive the payment instantly
and directly into their bank account or mobile money account,” the Vice
President said.
Dr Bawumia lauded
the Bank of Ghana (BoG) for taking bold steps to encourage electronic payments,
including; incentives such as reducing charges and pushing up the limits on
mobile money transactions.
He believed these
measures would reduce human contacts and provide the needed social distance
between customers and merchants in a bid to curb the spread of COVID-19.
“It is therefore
important that we do everything we can to expedite the wholesale use of
electronic payment channels like mobile money, ezwich, bank accounts, among
others, in the payment of goods and services from merchants.” The Vice
President said.
Vice President
Bawumia acknowledged the efforts of the Central Bank for putting the requisite
infrastructure in place over the past three years to provide the nation the
vehicle to go cashless.
With regard to the
Proxy pay, he said, every bank account would be given a phone number to be a
proxy for the Bank Account number for individuals or a chosen Alias for
companies.
Therefore,
individuals could make payments to one’s bank account through the phone number,
similar to mobile money.
Dr Bawumia expressed
the conviction that the new payment platform would enhance business
transactions in the country, saying; “This will help us move further into the
cashless direction because there will be no longer any need for merchants to
have point of sales devices, with the QR Code platform, all they need is a
mobile phone and even a “yam phone” will work”.
GNA