The Bank of Ghana has blocked a proposed 0.75% fee on mobile money-to-bank transfers by MTN Ghana’s fintech unit, Mobile Money Fintech Limited. This action stopped the charge before its scheduled implementation on June 1.
The central bank directed Mobile Money Fintech Limited, MTN Ghana’s mobile money subsidiary, to pause the fee. This pause is pending further consultations with other industry stakeholders. The decision impacts one of Ghana's most widely used digital payment methods, where mobile wallets are crucial for daily transactions.
This intervention comes less than two months after MTN Group completed the separation of its Ghana mobile money business. The restructuring created Mobile Money Fintech Limited as a standalone company. This move aimed to foster growth, support diverse payment and lending services, and attract potential strategic investments. Ghana represents one of MTN's largest mobile money markets.
The Bank of Ghana emphasized that consultations will continue before a final decision is made on Mobile Money Fintech Limited's proposed fee structure. This intervention demonstrates how mobile money has become too important to be treated as a normal fee business. Wallet-to-bank transfers, while accounting for only about 7% of mobile money transaction value, are vital for connecting mobile wallets to the banking system. They help users move funds between formal and informal financial channels.
A new 0.75% charge could increase revenues for MTN's fintech unit. However, it also could raise costs for consumers and small businesses. These users already navigate various taxes and charges on electronic transfers, including the Electronic Transfer Levy (E-Levy). The E-Levy was introduced in 2022 at 1.5% and later reduced to 1% in 2023.
Ghana’s mobile money market is substantial, boasting 26.7 million active wallets and nearly 491,000 active agents. Even small charges can have widespread effects across the economy. Such fees directly influence financial inclusion, competition within the digital payment sector, and public trust in digital transactions. Regulators will closely monitor any fee changes that could alter these critical aspects.
The central bank's next decision will reveal its stance on financial technology operators monetizing payment rails. It will also show its commitment to protecting users from potentially burdensome charges. The timing of this regulatory intervention is significant as MTN has just made its fintech business's pricing and profitability more transparent through its separation.