Mobile money transactions value declines by GH¢10 billion

The mobile money (MoMo) sector in Ghana has experienced a significant decline in both transaction volume and value in June 2024.

Recent data from the Bank of Ghana indicates that MoMo transactions have fallen by a staggering 24 million, with the total transaction value decreasing by GH¢10 billion.

The total number of MoMo transactions dipped significantly, falling to GH¢644 million compared to the GH¢668 million recorded in May 2024.

This downturn has raised concerns among stakeholders and experts, prompting discussions on the underlying factors and potential implications for the economy.

This resulted in a decline in the total value of MoMo transactions from GH¢234.3 billion to GH¢224 billion.

However, the balance of float, representing the money held in mobile money accounts, saw a slight increase from GH¢21.1 billion to GH¢22.2 billion during the review period.

The recent reduction in mobile money service usage can be attributed to economic and regulatory factors affecting user behaviour and market dynamics, along with growing calls for the reduction or elimination of the E-levy rate.

In terms of mobile money interoperability, the total transaction value decreased from GH¢2.8 billion to GH¢2.7 billion. The number of transactions also dropped, falling from GH¢17.7 million to GH¢16.9 million.

Similarly, the total value of cheques cleared through mobile money fell from GH¢33.5 billion in May 2024 to GH¢28.2 billion, with the number of transactions decreasing from 494,000 to 418,000.

Interestingly, these declines occurred despite an increase in both registered and active mobile money accounts. The number of registered mobile money accounts rose from GH¢68.7 million to GH¢69.3 million, and active MoMo accounts increased slightly from GH¢24.1 million to GH¢24.4 million.

On the business side, the number of registered MoMo agents grew by 5,000 in one month, from 843,000 to 848,000.

However, the number of active agents decreased by about 16,000, dropping from 567,000 to 551,000.

According to the report, the total transaction value under direct debit through the Automated Clearing House (ACH) declined from GH¢258.7 million to GH¢208.0 million, with the number of transactions reducing from 74,000 to 48,000.

For ACH (Direct Credit) transactions, the total value fell from GH¢10.1 billion to GH¢9.3 billion, and the number of transactions dropped from 874,000 in May to 745,000.

The mobile money sector has been a vital component of the digital economy, supporting various sectors such as e-commerce, remittances, and utility payments.

A prolonged downturn could hamper the growth of these sectors and slow down the overall digital transformation of the economy.