GhPageNewsE-levy Effect: MoMo Transactions Drop By Gh¢3 Billion Within 1 Month

E-levy Effect: MoMo Transactions Drop By Gh¢3 Billion Within 1 Month

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The value of mobile money transactions dropped by GH3.2 billion in December last year, according to data published by the Bank of Ghana (BoG), less than one month after Finance Minister Ken Ofori-Atta announced an electronic transfer levy in the 2022 budget (E-Levy).

According to the report published by thebftonline.com, the value of transactions on Ghana’s largest payment platform fell to GH82.9 billion in December from GH86.1 billion in November 2021, a 3.8 percentage point drop.

Before Mr Ofori-Atta announced the 1.75 per cent E-levy, the value of mobile money transactions had just increased to GH80 billion in October from GH71.7 billion in September, a more than ten percentage point increase between the two months.

E-levy Effect: MoMo Transactions Drop By Gh¢3 Billion Within 1 Month
Source: thebftonline.com

Aside from that, the volume of transactions indicates that some customers are hesitant to use the mobile money platform, as it increased by 300,000 in December, representing a 0.75 percentage point increase from November. However, compared to September and October, there was a 700,000 increase in transaction volume, representing 1.74 percentage point growth.

This development indicates a shift in consumer behaviour regarding the use of the payment platform following the announcement of the 1.75 per cent E-levy.

It also confirms many people’s fears, including those of mobile money agents, that enacting the E-levy will discourage customers from using the payment platform, causing their businesses to fail, a fear that several government officials have debunked.

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