Ghana announced that it has launched a Universal Quick Response (QR) Code and Proxy Pay system.
QR Code payment systems have been implemented in many countries however very few countries have successfully implemented a Universal QR CODE. With this launch, Ghana has become the first African country to implement a Universal QR code and the third in the world (after Singapore and India).
The QR Code and Proxy Pay systems are designed to make secure, convenient and low-cost financial service available to the vast majority of people, and to address the pain points of traditional finance institutions.
Due to the current coronavirus pandemic and ban on social gatherings, the launch was done online by the Vice President, Mahamudu Bawumia on the 25th of March, 2020 under the auspices of the Ghana Interbank Payment and Settlement Systems Limited (GhIPPS), a subsidiary of the Bank of Ghana.
According to the Vice President, “The Universal QR CODE will make it possible for all merchants, service providers and institutions to receive payments from bank accounts, ezwich accounts, mobile money wallets or internationally issued visa or MasterCards instantly.”
“Any merchant can have a universal QR CODE: e.g. chop bars, food vendors, barbers, carpenters or masons, musicians, shoeshine boys, khebab or ‘Kofi brokeman’ sellers, market traders, trotros, taxis, churches, mosques, schools, funeral committees, wedding organisers etc. Basically, any business,” he added.
“In the midst of the coronavirus pandemic, economic activity must go on even with social distancing. People must buy and pay for goods and services like food and medicines to exist.”
“The science says that there is a risk of transmission from every item that our hands touch. In a cash dominant economy such as ours, the risk inherent in the transmission of the coronavirus through banknotes is something we should be concerned about.”
“This means that once the use of cash diminishes, the risk of the spread of the coronavirus through banknotes will also diminish.”
Dr Bawumia stated that the Universal QR CODE will bring about interoperability across all telcos and across all banks and between banks and telcos.
“So when you go to a merchant with a Universal QR CODE, as long as you have a bank account or a mobile money account from any financial institution, fintech or telco, you will be able to pay the merchant regardless of which bank, rural bank, savings and loan, telco or fintech has acquired the merchant.”
Talking about the Proxy Pay system, Vice President Bawumia stated that every Bank Account will be given a phone number to be a proxy for the Bank account number for individuals or a chosen Alias for companies.
“So just like making payments to individual bank accounts, payments can be done through the phone number, similar to mobile money. So you can register an Alias, and have all payments made into your account. No need to memorise account numbers. I’m sure the churches and other large organisations will be delighted with it.”
“This QR Code and Proxy Pay is a gamechanger. For most merchants, this means little or no cash will be kept in the shops, taxis, buses, on the person, etc. so armed robbery and petty crime will decline. It is important that every merchant or service provider takes steps to get a universal QR CODE from their bank, telco or a fintech as soon as possible.
“If we all do this, we can transition Ghana into a near cashless economy in a very short period of time.”
