Latest data from the Bank of Ghana show that the value of mobile money transactions for the first month of this year has risen by 13.6 percent year-on-year to GHS76.2 billion.
According to the Central Bank’s Summary of Macroeconomic and Financial Data report, the total number of MoMo transactions increased from 301 million in January last year to 372 million in January this year.
The value of Mobile Money Interoperability transactions also saw a whooping jump of over 130 percent from GHS906 million to over GHS2.1 billion between January 2021 and January 2022.
Although it is observed that on a year-on-year basis, most of these transactions recorded an increase in value and volume between January last year and January this year, the figures decreased on a monthly basis.
These reductions seem to be a result of reactions to the proposed electronic transfer levy, as government communications had earlier confirmed a reduction in the volumes if the tax policy is approved.
The value of MoMo transactions in January this year, for instance, saw an eight percent decrease from the GHS82.9 billion recorded during the festive period to a record GHS76.2 billion.
The number of MoMo transactions also saw a drop from 401 million in December to 372 in January this year.
Mobile Money Interoperability also saw a 15 percent drop in volume from 12.2 million in December to 10.3 million in January.
Even Ghana Interbank Payment and Settlement Systems (GHIPPS) Instant Pay, which has constantly seen a rise in volume over the past months saw a 14 percent decrease from 5,375 to 4,620.
Players in the industry have hence predicted more decreases in the volumes and value of electronic transactions should the government go ahead to implement the electronic transfer levy.
Many people have called on the Government to rethink the decision to introduce e-levy since many more people are going to avoid using the service since they feel it is a multiple tax which is going to have far reaching effects on the ordinary Ghanaian, especially the poor in society.
Some analysts have argued that the introduction of the e-levy will not only affect the users of the services but also going to put more mobile money operators out of business since there will be drastic reduction in sales volumes, which will affect profits and therefore make the business less lucrative.