MobileMoney Fintech Limited (MMFL) has launched the 'Ride with Momo' initiative to onboard transport operators onto the MTN MoMo Merchant platform. This move aims to reduce challenges linked to cash transactions and improve financial inclusion for drivers.
The initiative, launched in partnership with the Ghana Interbank Payment and Settlement Systems (GhIPSS), provides a secure digital payment system. It uses the Ghana Quick Response (GHQR) code for transactions. This system will help drivers overcome daily problems like searching for change, safeguarding cash, and dealing with fake notes.
This development aligns with Ghana's broader goal of transitioning to a cash-lite economy. The Bank of Ghana has been promoting digital payments to modernize the financial sector and reduce the risk of illicit financial flows. Initiatives like 'Ride with Momo' support this national agenda by integrating a significant informal sector like transport into the digital financial ecosystem. Ghana's economy grew by 4.7% in April, with the services sector, including transport, being a key contributor.
Shaibu Haruna, Chief Executive Officer of MobileMoney Fintech Limited, stated that the campaign addresses commercial drivers' everyday challenges. He noted the digital platform allows drivers to separate personal and business finances, maintain transaction records, and build digital financial footprints. This can improve their access to business loans, supporting their economic growth.
Drivers registering for MTN Merchant wallets and using the GHQR payment platform will receive monthly rewards and incentives. Top-performing users will get additional prizes. The Ghana QR (GHQR) payment solution allows drivers to accept payments from mobile money users, banks, savings and loans institutions, and other GHQR-enabled platforms. This expands their payment options significantly beyond cash.
Akosua Blay, Chief Business Officer of GhIPSS, emphasized that the campaign, powered by the GHQR payment solution, will simplify payment receipt for drivers. She urged that the initiative, while currently focused on Pragya drivers and the transport sector, should expand to other industries. This expansion would further deepen Ghana's journey towards a cash-lite economy, enhancing digital payment adoption across various sectors. GhIPSS remains committed to collaborating on advancing digital payments in Ghana.
This shift to digital payments in the transport sector is expected to have several implications. It could lead to increased transparency in financial transactions within the sector, potentially boosting tax revenue. Furthermore, drivers' improved financial records could pave the way for better access to formal financial services, lessening their reliance on informal money lenders. Market participants and policymakers will closely watch the adoption rate and its impact on other informal sectors.