Remittances have historically been associated with the transfer of cash by international migrants to relatives and other persons in their countries of origin. Research on remittances has proven to be an important source of income for most developing countries in recent years.
Figures on international remittance flows to Ghana are often contested due to variations but data from the Bank of Ghana (as of 2014) show that total annual remittances flowing into the country through formal channels are about $2 billion.
There are many positive developmental impacts that remittances have brought to Ghana such as :-
- Foreign exchange from remittances helps reduce the current account deficit.
- Remittances have also impacted the Ghanaian economy through investment.
- A large proportion of international financial transfers to Ghana are used
for consumption and recurrent expenditures.
- At the community level, remittances sent by hometown associations and individual migrants are used to finance community development projects.
The above shows just how remittances have impacted on the social economic growth of Ghana as a nation.
How payments are made in Ghana
Ghana has a host of payment alternatives within the country but nothing stands out as much as mobile money. This is because it cuts across all social and economic boundaries to serve the wealthiest and the poorest or those in remote areas. The main mobile money payment platforms are Tigo money, Airtel money and MTN Ghana.
Banks are another alternative that is used but however by a smaller percentage of the people because many prefer the convenience and simplicity of mobile money unlike the paperwork and long procedures banks have.
What Remittance companies aiming at joining Ghana should do in regards to payment
Remittance companies have three options when venturing in Ghana ; set up various branches in the land, incorporate with banks , connect with the popular and already established mobile money platforms courtesy of Dusupay.
The first (physical branches) has a lot of cost involved for the business which is not ideal for businesses under normal operational circumstances. Whereas bank procedures have repelled the majority basic citizen meaning remittance businesses would not be able to reach a wide range of people.
Mobile money through Dusupay
Through Dusupay, remittance companies have the ability to pay out to a large number of people in need of remittances. The money is received on a widely used platform in Ghana where as the remittance companies get to cut costs.
Dusupay Octopus https://www.dusupay.com/octopus