Ghana's digital payment transactions reached GHS 3 trillion in 2024, processing 8.1 billion transactions. This marks a significant 57% increase in value from 2023, which saw GHS 1.9 trillion processed across 6.8 billion transactions. Despite this growth, digital fraud cases rose to 16,733 in 2024.
Economist and Professor of Finance, Godfred Bokpin, from the University of Ghana Business School, argues that Ghana cannot retreat from digital payments. He emphasizes that the country must focus on managing the inherent risks. Digital payments expand financial inclusion, cut transaction costs, offer convenience, and create new digital jobs. These benefits outweigh the challenges posed by increased fraud.
This surge in digital payments aligns with Ghana's broader economic strategy to digitize its economy. The Bank of Ghana's 2024 Payment Systems Oversight Annual Report confirms the payment landscape remained robust. The digital economy, driven by apps and technologies, is projected to grow faster than the traditional economy. This trend aligns with global economic shifts towards digital transactions and significant investments in digital payment infrastructure.
Professor Bokpin highlighted the overall net positive benefits of digital payments despite the rise in fraud. He stated, "The net benefit overall is positive. Regardless of the fraud, the uptake, the trend, the convenience, the inclusion and the fact that the digital economy is expanding and creating digital jobs and digital apps are all quite good." He will elaborate on these points in a documentary titled “The Trust Crisis,” ahead of the maiden Digital Economy Forum. This forum, an initiative of Hubtel, aims to address how Ghana's regulatory system can keep pace with growing digital finance.
The increase in digital transactions and fraud has significant implications for Ghana's financial sector and policy makers. The Bank of Ghana's 2024 fraud report indicates that total value at risk from fraud rose from GHS 88 million in 2023 to GHS 99 million in 2024. Payment service providers recorded 15,673 fraud cases, with GHS 19 million at risk in 2024. These figures cover both attempted and successful fraudulent activities. Decision-makers must strengthen regulatory frameworks and enhance cybersecurity measures to mitigate fraud risks effectively. This will build public trust and ensure the continued growth of Ghana's digital economy. The shift from physical crime to online fraud necessitates a comprehensive and adaptive approach to security. This rapid evolution of payment methods requires constant vigilance and innovation from financial institutions and regulators.
The expansion of digital finance is particularly crucial for Ghana's large informal sector and unbanked population. Digital platforms offer pathways for financial access that traditional banking often cannot provide. This can lower transaction costs over time as uptake increases and volumes grow. Professor Bokpin notes that "digital payments, digital apps and fintech open up the market and rope in all these people." Therefore, safeguarding these digital avenues is essential for sustaining economic development and equitable access to financial services.