Beyond Literacy: The Need for Inclusive Digital Payment Systems in Ghana

Ghana is shifting towards an absolute cashless econ­omy, providing convenience and efficiency to business and individuals.

Micro, Small, Medium Enterpris­es (MSMEs) are major targets of these ongoing cashless economic reforms.

But entrepreneurs like Mrs Samani Manyibo and Rosina Nana, lamented they faced challenges adopting digital payments smooth­ly.

Mrs Manyibo, a yam seller at the Agbogbloshie Yam Market, and Rosina Nana, a fashion designer, are both victims of illiteracy, which has limited their ability to navigate digital payment systems.

Despite their enthusiasm for do­ing business, they are forced to rely on traditional cash-based transac­tions, which can be time-consum­ing and frustrating.

For Mrs Manyibo, the experi­ence of being scammed through a mobile money transaction last year was a turning point.

Unable to read or write, she was unable to confirm the payment, and her customer took advantage of her vulnerability. Since then, she has been wary of digital payments, opting instead for cash transac­tions.

“I do have customers who come to me that they want to buy tubers of yam and pay me through mobile money, but because I did not go to school, I do not accept such payments. So I just refer them to a momo vendor to go and withdraw and pay me in cash,” she said.

Recounting her scam experience, she stated that, somewhere last year, one of her customers bought her products and paid her through Mobile money, because she could not read nor write, she could not confirm the payment until she got home after work and gave it to her children to check for her.

She narrated that, she was sur­prised when her daughter told her, there was no money in her wallet even though the customer told her she had sent the money.

“So since that day, I do not want to receive payment through my Mobile money wallet or any other form except cash,” she stated.

Rosina Nana’s experience is similar.

As a fashion designer, she is of­ten required to make payments for materials and supplies, However, her inabil­ity to read SMS prompts and navigate digital payment systems means she is forced to queue for hours to make cash payments.

This not only wastes her time but also puts her at a disadvantage compared to her competitors who are conversant with digital pay­ments.

The limitations of digital pay­ments for illiterate entrepreneurs like Mrs Manyibo and Rosina Nana are clear.

Without the ability to read or write, they are unable to navi­gate the complex digital payment systems, making them vulnerable to scams and frustrated by the inef­ficiencies of traditional cash-based transactions.

However, there is hope on the horizon. Rosina Nana’s suggestion of a voice-activated digital payment system is an innovative solution that could address the limitations of illiterate entrepreneurs.

Such a system would allow users to make payments by speaking instructions, eliminating the need for literacy.

“That really frustrates me, some­times, I get there before them, but because I can’t make such pay­ments, I have no choice than to be in the queue to paying using cash, these means I spend hours there while I could have been using that time stay in the queue to design a dress,” she stressed.

“I wish, there was a way for we those who are not digital conver­sant to also make digital payments, that is, maybe speaking to the decision by instructing it to make this amount of payment to this account or wallet, it could have helped us a lot,” she added.

She said as Ghana continues to push towards a cashless economy, it is essential that policymakers and stakeholders consider the needs of illiterate entrepreneurs like her and others.

By developing innovative solu­tions that address the limitations of digital payments, we can ensure that everyone has access to the benefits of a cashless economy, regardless of their literacy level.

A digital payment system is a method of conducting transactions electronically, where individuals pay for goods or services through digital technologies.

Digital payment systems uses credit cards, debit cards, mobile wallets, online banking transfers, digital wallets, or other electronic payment platforms to transfer funds directly between accounts.

These platforms are regulated by Ghana’s central bank which owns the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS).

The platform seeks to promote digital financial activities, a key component of Digital Public Infra­structure.

Furthermore, the digital pay­ment system which is a Digital Pub­lic Infrastructure (DPI) is so acces­sible that one can make payments anywhere at any given time by using various devices and platforms, including mobile phones, tablets, laptops, and desktop computers.

In order to increase digital finan­cial inclusion and to get MSMEs to participate in the digital economy drive, Bank of Ghana implement­ed a three tier merchant account on-boarding scheme to enable busi­nesses of various sizes to accept digital payments.

“Similarly, the Ghana Interbank Payment and Settlement System (GhIPSS) in collaboration with industry stakeholders have de­ployed a universal QR Code called the GhQR code to promote an affordable

alternative to Point of Sale (POS) devices and encourage MSMEs to accept digital payments.”

“Also, a consumer-friendly inter­change fee has been implemented to allow users of mobile money to make interoperable merchant payments at points of sale using GhQR code without transaction fees,” the report highlighted.

However, due to high illiteracy in MSME’s in the country, like the case of Mrs Manyibo and Rosina Nana, they are not able to fully par­ticipate in this financial inclusion as they are unable to use these digital platforms.

The other way Mrs Manyibo and Rosina could access these platforms is through a third party, which includes an Momo vendor, a family or friends to help them, but share their PIN codes is a daring challenge they have to choose.

“I am very scared sharing my PIN code with someone because I have heard of how people have managed to redraw money from one’s account because they have access to their pins, I do not want to fall victim to that,” Rosina said.

Mrs Manyibo also narrated rea­sons why she cannot keep money in her account, saying that due to her inability to read, she normally gives her mobile phone to the vendors to process the transactions and she mentions her PIN code to them to redraw or make payments.

“I fear due to that, they will be able to access my account and redraw money,” she stressed.

The Executive Director of Africa Education Watch, Mr Kofi Asare said he believes the MoMo interfac­es and systems can be more socially inclusive illiteracy friendly.

He said most of these digital technologies are English text-based which means one has to read and type, so individuals who were not illiterate and not digitally conver­sant would struggle to use these platforms.

“The USSD approach could be transported onto digital platforms they are able to put their hands on, it takes their biometrics, or allowed to speak to the device that identifies your voice, others, to identify your face, to be able to perform transac­tions or operate in their privacy.”

“To make this inclusive, we need to ensure we use local languages to make these people understand and speak to the device, and then it speaks back to him or her, it is able to identify your voice, so they can instruct it to make the transactions for them,” he asserted.

Providing illiterate-friendly plat­forms to aid in the digital economy inclusion for persons who are not able to read and write, it is import­ant to add digital innovations and software capabilities to capture voice prompts, point-of-sale devic­es, and screen readers.

The story of Mrs Manyibo and Rosina Nana highlights the challenges faced by illiterate en­trepreneurs in a rapidly digitising economy.

However, through innovation and advanced technologies, the country can create a more inclusive economy that benefits everyone, regardless of their literacy level.