Ghanaian universal QR code set to accelerate the pace for cash-lite society:
The central bank of Ghana has launched a universal QR payment solution, becoming the first African country to introduce a universal QR code.
The implementation of the Ghana Universal QR Code allows customers to make instant payments from multiple funding sources (mobile wallets, cards, bank accounts) by scanning a quick response code on a smartphone. This reduces the need for resellers to purchase dedicated hardware and facilitates financial management that supports small business growth.
Furthermore, Ghana is following in the footsteps of countries ranging from Singapore to Saudi Arabia. Singapore announced its Singapore Rapid Response Code (SGQR) nearly a year ago as the country sought to simplify its electronic payments landscape. Saudi Arabia is looking for a QR-based national electronic payment system.
Only a few countries around the world have been cashless, although many countries remove cash from the system. Sweden is one of the countries considered to have an electronic card.
According to Ghana News in May 2020, a subsidiary of the National Bank of Ghana, Ghana Interbank Payment and Settlement Systems, partnered with global payment solution provider HPS to launch its universal QR code and payment proxy platform. The solution allows consumers to make instant payments from mobile wallets, cards, and bank accounts by scanning QR codes with their mobile devices.
Ghana is one of the countries struggling to become a cashless society in the West African sub-region. In addition, the vice president of Ghana reported on the measures taken by the government to promote an economy with limited liquidity. This includes the launch of the national interoperability platform and the launch of a universal QR code payment system in an effort to provide a cashless business in Ghana.
In Ghana, customers can pay instantly by scanning a universal QR code via their MoMo account or bank account. This will make the transaction smooth for traders’ financial institutions. This QR code is compatible with national banks, savings, and loans. Both smartphone users and non-smartphone users can use this universal QR code. Smartphone users only need to read the merchant’s QR code and enter the payment amount, while smartphone users need to enter the QR code and then make the payment. In this way, payments via QR code are processed immediately.
The proliferation of digital payments, including traditional prepaid and debit cards and mobile payments, has contributed to consumers’ ever-changing payment practices. As smartphone penetration and digital payments increase, so do cash opportunities. For some companies, a cashless business model is a strategic choice that offers clear benefits.