Payment Systems Strategy (2019 to 2024)

Contents
1.0	Introduction..................................................................................................................................	2
2.0	Review of the 2014 Strategic Payment Systems Roadmap.........................................	2
2.1	Key Achievements ..................................................................................................................	3
2.2 Rationale for a New Payment Systems Strategy.........................................................	3
3.0	Vision...............................................................................................................................................	4
4.0	Strategic Objectives ...................................................................................................................	4
5.0	Strategic Pillars/ Responsibilities ..........................................................................................	4
5.1	Responsibility Matrix.............................................................................................................	5
6.0	Strategic Enablers (Critical Success Factors) .....................................................................	7
7.0	Strategic Initiatives.....................................................................................................................	7
8.0	Action Plan for Initiatives.........................................................................................................	9
9.0	Conclusion .................................................................................................................................	14
Appendix ..................................................................................................................................................	15

Bank of Ghana	1

1.0 Introduction

This strategic plan, termed "National Payment Systems Strategic Plan (2019-2024)", sets forth the policy direction and guidelines that will promote an enabling environment to develop the Ghanaian payment and financial systems. It leverages on opportunities provided by digital technologies to promote competition, efficiency, innovation and financial inclusion within the payment ecosystem. The plan is anchored on the provisions of the Bank of Ghana Act, 2002 (Act 612), as amended, and the Payment Systems and Services Act, 2019.

The new plan builds on the 2014 Strategic Roadmap by providing a policy framework to stimulate the electronic means of payment in Ghana and encourage shared responsibility in the implementation of the Plan.

Efficient, safe and convenient payment systems are fundamental to economic activity and wealth distribution. Ghana's payment system development, since 2000, has been guided by strategic plans to address the dominance of the informal sector and cash payments. Formalising payments is fundamental to modernising Ghana's economy and holds prospects for better outcome for fiscal operations of government and efficient functioning of the economy.

2.0 Review of the 2014 Strategic Payment Systems Roadmap

The 2014 Strategic Roadmap sought, among other things, to:

• Increase the use of secured and efficient electronic payment channels to move the country to a cash-lite economy;
• Identify measures needed to create an enabling environment that would facilitate the provision and use of innovative electronic payment methods; and
• Promote financial inclusion.

Bank of Ghana	2

2.1 Key Achievements

The following were achieved under the 2014 Strategic Roadmap:

• Establishment of a Payment Systems Advisory Committee which advises the Bank on payment system issues;
• Implementation of GhIPSS Instant Pay (GIP) which allows payments to be sent across financial institutions electronically from one bank account to another;
• Introduction of gh-Link card which interconnects financial institutions and systems of third party providers; and
• Migration of payment cards to EMV1 chip and PIN standards.

2.2 Rationale for a New Payment Systems Strategy

Payment systems are undergoing significant changes driven by technological advancement and evolution of customer needs. Electronic payment is gradually edging out paper-based payment instruments on account of its relative efficiency. Consumers demand for convenience, speed and accessibility in payments are encouraging deployment of digital payment products. In Ghana, mobile phone penetration has enhanced the appeal of mobile money for payment services, and holds prospects for overcoming constraints to financial inclusion. It is however recognised that it requires substantial efforts for payment habits to change from paper-based to electronic form.

It is important that the efforts of Payment Service Providers to meet the complex payment needs of various users are properly coordinated and guided to constrain potential risks and enhance societal value. A concerted effort of all stakeholders is required to ensure that innovative payment products and services pose no risk to the integrity of the payment system and financial stability. A regulatory framework that provides space for FinTechs and other non-bank entities in the payments space is therefore essential. This strategic plan, over the next five years, will give direction to the rapidly evolving payment ecosystem.

1 Euro pay, MasterCard and Visa

Bank of Ghana	3

3.0 Vision

To have a safe, efficient and inclusive payment system with an enabling environment for competitive delivery of innovative, convenient, and affordable digital payment solutions.

4.0 Strategic Objectives

The main strategic objectives2 of the 2019-2024 National Payment System Strategy Plan are to:

• Foster efficient payments;
• Improve financial inclusion; and
• Enhance financial innovations.

5.0 Strategic Pillars/ Responsibilities

In line with the strategic objectives, the key strategic responsibilities are to:

• Develop and implement clear and comprehensive regulatory and governance framework;
• Promote free, competitive and orderly development of the payment system space that encourages innovation;
• Promote a safe and efficient payment system that fosters confidence and encourages usage;
• Deepen financial inclusion;
• Promote financial technologies;
• Promote interoperability of payment systems;
• Foster consumer trust; and

2 A list of desired outcomes is provided in the appendix.

Bank of Ghana	4