Payment Systems And Settlement Bill Officially Passed By Parliament

The Parliament of Ghana yesterday officially passed the Payment Systems and Settlement bill into law. The bill is expected to help foster growth of electronic payments in Ghana.

The law is to amend and consolidate laws and guidelines relating to payment systems, electronic money operations and to regulate institutions which issue electronic money and provide payment services in Ghana.

The previous laws, specifically, the Payment Systems Act, 2003 (Act 662) and the Branchless Banking Guidelines (2008) were already in effect but they failed to make provisions for emerging payment streams such as electronic money, prepaid cards, credit cards, electronic platforms and payment instruments. 

What Happens Next

With the Payment Systems and Settlement law going into effect, mobile money operators will need to set up subsidiaries and seek approval from the Bank of Ghana.

The bill also paves the way for Banks to issue e-money to it’s customers which will be guided by rules and regulations in the bill.

Paving The Way For a Cashless Society

Mobile Money has been a game changer in Ghana. Users can simply have virtually wallets on their mobile devices which can be used to transfer monney and make payments for services.

The Bank of Ghana has set 2024 as a deadline for the country to move towards an era where little cash is used in financial transactions. The government of Ghana has also made plans to start accepting electronic payment for its service starting in June, and virtually phasing out cash transactions.