Visa and GhIPSS join forces for innovation

In a groundbreaking collaboration, the Ghana Interbank Payment and Settlement Systems (GhIPSS) and global payment giant Visa are set to redefine the domestic payment ecosystem.

The historic agreement, unveiled at the GhIPSS headquarters in Accra, is scheduled to kick off in May 2024.

This strategic partnership aims to leverage the combined expertise and global reach of both entities to bring about increased efficiency, reduced transaction costs, and a streamlined dispute resolution process for domestic payments.

CEO of GhIPSS, Archie Hesse, sees this collaboration as a watershed moment for Ghana’s payment landscape, emphasizing the potential for improved effectiveness and lower costs.

This partnership marks a significant step towards fostering collaboration and opens avenues for future advancements in the country’s financial sector.

One of the pivotal outcomes of this agreement is the potential reduction in reliance on foreign currencies.

As GhIPSS is locally owned, all transactions will be conducted in the Cedi, providing financial institutions with the ability to seamlessly operate in the local currency.

This move is crucial for reducing complexities associated with using foreign currencies to pay service providers.

The collaboration is expected to yield substantial cost savings for VISA agents, especially banks, which could translate into lower transaction fees for clients.

Mr Hesse reiterated GhIPSS’s commitment to keeping transaction costs affordable, emphasizing the inclusion of a public good element in its operations.

This partnership is unfolding at a time when inefficiencies persist in payment and settlement transactions across the continent, particularly those involving multiple offshore counterparts.

Hesse hinted at the potential for “dual cards,” connecting to both Visa’s infrastructure and nearby establishments outside its usual network, fostering financial inclusion.

Andrew Uaboi, Vice President and Head of West Africa Cluster at Visa, highlighted Ghana’s significance as a key market.

He expressed Visa’s commitment to partnering with Ghana to build a more inclusive and prosperous digital economy, attributing Ghana’s rise as a regional leader in digital payments to its vibrant economy, tech-savvy population, and dedication to innovation.

“At Visa, we believe in Ghana’s potential as one of our most important markets. Ghana’s rise as a regional leader in digital payments is no accident. Its vibrant economy, tech-savvy population and commitment to innovation make it fertile ground for growth, and Visa is proud to be a part of this journey. We are committed to working with our partners here to build a more inclusive and prosperous digital economy for all Ghanaians,” he said.