Banks have been urged to embrace the Ghana Interbank Payment and Settlement Systems (GhIPSS) Instant Pay to increase efficiency and immediacy in payments.
Dr. Settor Amediku, Head of Payments Systems, Bank of Ghana speaking at an engagement between GhIPSS and commercial banks in Accra said with the introduction of the Instant Pay, businesses and financial institutions have the opportunity to minimise fraud in revenue collection and bring efficiency in collection effort.
He announced that following the Bank of Ghana’s directive for all banks to complete certification, seven banks were fully certified on GhIPSS Instant Pay and six were currently live.
Dr. Amediku said nine banks are also partially certified and three were live with partial certification.
“It is gratifying to state that some financial institutions have also notified the Bank of Ghana on effort being made to achieve this certification before the end of the year.
He said the BoG would continue to support the development of products and services that have the potential to serve as catalyst for growth in the financial sector and efficiency in the payment system.
The Chief Executive of GhIPSS Mr. Archie Hesse said the world was moving fast and there was the urgent need not to short change customers but to develop an equivalent payment system which is instant and equally very fast.
He said speed, convenience and safety were key things that made GhIPSS come out with the instant pay to smoothen the lives of customers and businesses.
He said it was frustrating to go to designated places only to pay when the transaction could easily be done by the touch of a button as businesses want their money as quickly as possible.
“So instant payment has great benefits to productivity of the country. Banks would get their floats quicker, the government would enjoy liquidity and liquidity would be everywhere. Everything would be more efficient than it really is now,” he said.
Mr. Archie called on the Bank of Ghana to make it mandatory for all banks to have the facility to receive instant pay as is the case in Europe and Nigeria.
“It is imperative and important for the country. But instant pay is just the building block but what is important is the product and services that we would develop around the instant pay system,” he added.
GhIPSS Instant Pay (GIP) is a service on the gh-link platform which allows payments to be sent across financial institutions electronically from one bank account to the other as a single immediate payment.
With GIP, customers of banks can transfer money from their bank accounts to accounts of beneficiaries in another bank instantly. GIP guarantees real time payment.
The breakfast meeting was to create a platform for GhIPSS to interact with stakeholders on GIP and to explain to them its potential as a viable business line for financial institutions and how it can facilitate business transactions for enterprises and companies.
The initiative is part of efforts by GhIPSS to modernise the country’s payment system in line with the cash-lite agenda.
Speaking at the breakfast meeting, Mr. Dapo Adeosun, Customer Relationship Management, NIP, said the use of the Instant Pay is growing all over the world.
He said Nigeria had made enough progress in the use of the system and called on stakeholders to embrace the system.
By David Adadevoh