Stakeholders in Ghana's financial sector have highlighted the significance of digital transactions in enhancing micro, small and medium-sized enterprises' access to credit and formal financial services. Despite mobile money's substantial growth and impact on financial inclusion, many small businesses still rely heavily on cash transactions. This reliance limits their visibility within the formal financial sector, making it challenging for them to access credit and other financial services. The stakeholders made these observations at the launch of Visa Accept, a digital payment solution designed to enable merchants to receive electronic payments through mobile devices.
Ghana has experienced substantial growth in mobile money usage, with millions of people using the platform for everyday transactions, including payments, transfers and savings. This development has helped reduce barriers to financial services, particularly among underserved populations and small businesses. However, industry players believe that more needs to be done to encourage digital transactions among micro and small enterprises to support their growth and integration into the formal economy. The increasing use of digital payments can help small businesses attract more customers, including international visitors who prefer cashless payment options.
Mr. Fabrice Conan, the Country Manager for Visa Ghana, noted that while mobile money has made significant contributions to financial inclusion, there is still considerable room to expand digital payment adoption in the country. Many micro-merchants operate largely in cash, making it difficult for them to benefit fully from financial services linked to digital transaction records. Digital transactions can help create the financial visibility required for businesses to access services such as credit, insurance and other financial products. This visibility is crucial for businesses to access full-fledged financial services enabled by digital payments.
Mr. Eugene Ocansey, the Executive Director, Retail and SME Banking at Access Bank Ghana, emphasized that access to credit remains a major challenge for many small businesses due to the absence of business records and transaction histories. Financial institutions often find it difficult to assess the performance and creditworthiness of informal businesses because of limited data on their operations. The only way banks can support small businesses' growth is to find a way to formalize them. Digital payment channels can provide an effective means of capturing transaction data that would support lending decisions and make it easier for businesses to access financing.
The availability of reliable transaction records can improve access to credit and enable banks to offer tailored financial solutions to support business expansion. Mr. Ocansey highlighted the need for continued merchant education and awareness creation to boost confidence in digital payment systems and encourage wider adoption. Strengthening digital payment ecosystems can contribute to greater financial inclusion, improved access to credit and the growth of small businesses, which play a critical role in Ghana's economy.
Many small businesses in Ghana remain excluded from opportunities within the formal financial system despite their contribution to economic growth. The stakeholders' push for digital transactions aims to address this issue and support the growth of small businesses. By encouraging digital payments, financial institutions can provide small businesses with the financial visibility they need to access credit and other financial services.
The launch of Visa Accept and similar digital payment solutions is a step towards promoting digital transactions and improving small businesses' access to credit. Industry players believe that with the right support and infrastructure, small businesses can leverage digital payments to enhance their financial inclusion and growth prospects. This development can have a positive impact on Ghana's economy, which relies heavily on small businesses for growth and job creation.
Key points
- Digital transactions can improve SMEs' access to credit and formal financial services in Ghana.
- Mobile money has significantly transformed Ghana's payment ecosystem, but more needs to be done to encourage digital transactions among micro and small enterprises.
- Strengthening digital payment ecosystems can contribute to greater financial inclusion and improved access to credit for small businesses in Ghana.
