The Institute of Statistical Social and Economic Research (ISSER) calls on Mobile Money (MoMo) agents across Ghana to reconsider their decision to limit cash withdrawals to a maximum of GH1,000 per transaction, as this will be unfavorable to financial inclusion gains and the transition to a cash-lite economy.
ISSER, on the other hand, is urging MoMo stakeholders to engage in dialogue in order to come up with a fair and sustainable pay model for MoMo agents that is not detrimental to financial inclusion.
The call follows a recent decision by Mobile Money agents in the country to limit withdrawals to a maximum of GH1,000 per transaction, effective December 1, 2023, in order to ensure adequate compensation for their services.
ISSER, on the other hand, stated in a statement made on Wednesday, December 6, that it recognizes MoMo agents’ desire for improved income.
“However, we wish to caution that the current unilateral action can be detrimental to gains made in financial inclusion and the transition to a cash-lite economy.
In the medium to long term, the sharp increase in the cost of withdrawal will drive customers away and inadvertently reduce the profitability of agents. We call on all stakeholders to resort to evidence-based dialogue for a fair compensation model that will not jeopardize gains made in financial inclusion,”It clarified.
It further stated that the measure could jeopardize progress in the digitization of MSMEs because the proposed rate will have little impact on low-value transactions.
“However, it stands to adversely impact micro, small and medium, enterprises who rely on MoMo for their financial transactions, especially traders and farmers within the agricultural value chains concentrated in rural areas.”
