Banks and Financial Institutions in Ghana to Offer Discounts to Customers Using Debit Cards
As part of the effort to drive non-cash forms of payments in Ghana, a number of banks and financial institutions are offering discounts to customers who shop off their debit cards at particular shopping outlets. GhIPSS’s CEO, Archie Hesse, called for more collaborations between banks and merchants so that such incentives can be provided regularly.
Financial institutions that offer discounts to customers who shop and pay with cards have been commended for promoting the cash-lite agenda. The discount is expected to encourage people to use shop and pay using their debit cards.
A number of banks including Stanbic Bank are offering discounts to customers who shop off their debit cards at particular shopping outlets during the Easter season. It is part of efforts to drive non-cash forms of payments in the country.
Officials of Ghana Interbank Payment and Settlement System (GhIPSS) who have been championing electronic payments, have suggested incentives as plausible strategies that banks can adopt to drive patronage. GhIPSS therefore considers the move by banks to offer discount to customers who pay with their cards as highly commendable. Its Chief Executive Officer Archie Hesse called for more collaborations between banks and merchants so that such incentives can be provided regularly.
Heavy dependence on cash for payments puts a lot of strain on a country’s finances, experts have suggested. It cost a lot of money for banks to manage cash by ensuring its security when stored in the vault and when it is being transported. The Central Bank also spends a lot of money in securing cash, transporting it and replacing worn out notes. It even cost a lot of money to destroy worn out notes. These costs can be significantly reduced is cash use is reduced in favour of electronic forms of payment such as cards, mobile and internet banking, as well as mobile money among several other options.
The use of cash is also considered inefficient and less secured as it involves carrying loads of it and moving from one location to another to make payments at the risk of losing the cash or being attached by robbers as is often reported.
Mr. Hesse urged the public to support efforts of the banks by responding positively to such discount offers. “When banks and merchants realise a significant response to such offers, not only would they be encouraged to do more, but others will do the same”, he explained.