June 2024 Sees Significant Decline in MoMo Transactions Despite Growth in Account Registrations
The latest data from the Bank of Ghana reveals a notable decline in Mobile Money (MoMo) transactions for June 2024, suggesting a possible shift in consumer behavior and market dynamics. The total number of MoMo transactions fell sharply to 644 million, down from 668 million in May 2024. This decrease in activity also reflected a drop in the total value of transactions, which fell from $234.3 billion to $224 billion.
Despite the downturn in transaction volume and value, the balance of funds held in MoMo accounts saw an unexpected increase, rising from $21.1 billion to $22.2 billion. This anomaly suggests that while fewer transactions were occurring, users were maintaining or increasing their balances, possibly as a precautionary measure amidst economic uncertainties.
The contraction in MoMo usage may be attributed to a variety of factors, including economic conditions, regulatory changes, and calls for public education on the e-levy rate. These factors could be influencing user behavior and leading to a more cautious approach to digital financial transactions.
In terms of MoMo interoperability, the total transaction value also experienced a slight decline, dropping from $2.8 billion to $2.7 billion. The number of interoperability transactions, however, showed a minor increase, rising from 16.9 million to 17.7 million. This suggests that while the value of transactions decreased, the frequency of cross-platform transactions slightly increased.
The total transaction value of checks processed through MoMo similarly declined, from $33.5 billion in May to $28.2 billion in June 2024. Correspondingly, the number of such transactions also fell, from 494,000 to 418,000.
Interestingly, these decreases occurred despite an increase in both registered and active MoMo accounts. The number of registered MoMo accounts rose from 68.7 million to 69.3 million, while active accounts saw a modest increase from 24.1 million to 24.4 million. This indicates a growing user base, albeit with reduced transaction activity.
On the business front, the number of registered MoMo agents increased by 5,000, from 843,000 to 848,000. However, the number of active agents saw a significant decrease, dropping from 567,000 to 551,000. This decline in active agents could signal challenges in agent engagement or profitability.
Furthermore, the total transaction value under direct debit through automated clearinghouses experienced a decline, falling from $258.7 million to $208 million. The number of transactions also reduced significantly, from 74,000 to 48,000.
The overall decline in MoMo transaction activities amid an increasing number of registered and active accounts suggests a complex interplay of factors affecting the digital payments landscape in Ghana. As the sector navigates these challenges, ongoing monitoring and adaptation will be crucial to maintaining momentum in the country’s digital financial inclusion efforts.
