BoG to make eCedi transactions charge-free for users
The Central Bank has noted that eCedi transactions just like cash transactions will be free of charge to consumers.
The decision by the apex bank forms part of its strategic goals to foster financial inclusion and consumer adoption of digital payments in the country.
Despite indicating that transactions involving the eCedi will attract no cost from the bank [Central Bank], it however noted that banks, specialised deposit-taking institutions, and payments service providers will be allowed to charge for eCedi related services.
Adding that, it does not intend to interfere in the business models of banks, SDIs and fintech companies.
“Like cash today, the eCedi transactions will be free of charge to the consumers. Nevertheless, the model recognizes and takes into account the value added service provided by banks, SDIs and payment service providers to facilitate access to and use of eCedi and compensate accordingly. In accordance with the liberalization ethos of the Ghanaian financial service industry, BoG does not intend to interfere with the business models of banks, FinTech companies, and merchants regarding fees for eCedi related services,” it said.
“This approach is expected to promote competition in the payment market and facilitate the provision of innovative value-added services on the back of the eCedi ecosystem. However, BoG will ensure that the consumers are given fair treatment in every aspect of eCedi transactions by ensuring that banks, SDIs, payment service providers and merchants comply with relevant consumer protection regulations and norms,” it added.
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According to the BoG, benefits of the eCedi to consumers include:
- An interoperable means of payment that can be used by everyone and anywhere in the country;
- Access to digital payment services at the last mile (inclusiveness);
- The simplification of access to and usage of a digital form of cash, will engender competition and ultimately make it easy for service providers to deliver more consumer-centric innovative products and services;
- The efficiency gains from the entire financial sector operating with a digital form of cash are expected to translate into a lower cost of service delivery
Meanwhile, the Central Bank has created two wallets – both offline and online – for the Central Bank Digital Currency (CBDC).
The apex bank in its eCedi Design Paper report, asserts the two wallets created include Hosted Wallets which will be managed by the various financial institutions in the country and Hardware Wallets which are secure portable storage devices held by individuals.
According to the Bank of Ghana (BoG), Hosted Wallets require access to the internet to be operational whereas Hardware Wallets work in offline mode.
“The most optimal form factor for the eCedi wallet is the app for a smartphone developed by commercial banks, FinTech companies, and other service providers. Other devices can be utilized depending on user preferences and payment scenarios. These could be smartcards (including the biometric ones) or wearables such as smart watches that contain communication capabilities and a secure element.
“Similarly, debit cards and USSD devices (feature phones) which are associated with the existing payment landscape in Ghana can be adapted for eCedi. Thus users can get the type of wallet that suits their needs from a bank or other financial service provider,” noted the Bank.
