High Mobile Charges Threaten Financial Inclusion – E-Banking Expert

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An Electronic Banking Expert, Ebenezer Yalley, has joined the call for mobile money service providers to consider reviewing charges customers pay on mobile money transactions.

According to him, the advocacy of deepening financial inclusion would suffer a major blow if high charges are associated with the same service which is meant to ensure the “unbanked” enjoy simple and convenient banking services via mobile money platforms.

Mobile money customers and patrons have in recent times expressed their displeasure on the high charges associated with transferring funds on the platform.

According to most customers, the double charges they endure from sending funds and the charge on withdrawing the same funds is a disincentive for use of the service.

The charges which range from between 1-2.5 percent depending on the Mobile Network Operator platform and the threshold of the funds being sent, has been viewed as expensive, compared to local banks’ fund transfer services which do not attract similar charges.

It is important to recognize that financial institutions hold all mobile money electronic float which usually provides a means for the acquisition of electronic- float income which a mobile money operator can benefit from to allow for the scrapping or reduction of the high charges borne by customers.

Ebenezer Yalley Speaking Sunday on ‘Defining Moments’ on Radio XYZ, Ebenezer Yalley admits that the software which is used to run mobile money services may be expensive to acquire and maintain.

However, he is also of the opinion that mobile money customers’ sensitivity to transaction charges and the service gap that has arisen out of the high charges on the platform need to be addressed.

He also bemoaned how financial technology service providers and aggregations pass on high charges to customers due to same they obtain from Mobile Network Providers. To him, this has the propensity to further stunt the growth of the electronic payment industry which is gradually tilting to a mature stage in Ghana.

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Source: Myjoyonline.com

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