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The Evolution Of The Money Transfers Industry In Ghana: From Conventional To Digital

23 Jun 2023

A money transfer to Ghana is no more hassle because of the evolved money transfer industry. With endless networks of intermediaries, laborious paperwork, and hidden fees, sending money abroad has historically been a difficult and expensive task. Thankfully, changes in the sector over the previous few years have made it possible for people and even small to mid-sized businesses to take advantage of quicker, more affordable, and value-added foreign money transfer services. 

Due to their direct access to the institutional foreign exchange market, which conducts $4.8 trillion worth of transactions every day, larger corporations, banks, and governments have historically enjoyed all of these advantages.

Money transfer operators (MTOs) help make international payment transactions possible. Without a doubt, the remittance industry is growing rapidly. Growing globalisation makes it simpler for people to relocate to other countries in search of better employment opportunities.

Let’s look at the evolution of money transfers from conventional methods to modern digital platforms and how they have impacted remittances to Ghana from overseas.

Conventional & Digital Money Transfer

Money transfers from one person to another have changed over time, and this shift is referred to as the evolution from conventional to digital money transfers. Conventional methods of transferring money, such as bank transfers, money orders, or hard cash, are referred to as conventional money transfers. These processes require your physical presence and paperwork and can take some time.

Digital money transfer, on the other hand, refers to the exchange of money through the use of electronic platforms and devices. Digital media like mobile money, online money transfer services, or cryptocurrencies are used in digital money transfers conducted online, through mobile phones, or other digital devices. Comparing traditional methods to digital ones, the former is typically quicker, more practical, and more secure.

Ghana Remittance Statistics

Following are some Statistics related to the development of the Ghanaian money transfer market:

  • Mobile money transactions increased significantly in Ghana from GHS 467.6 billion (roughly USD 79 billion) in 2019 to GHS 679.17 billion (roughly USD 115 billion) in 2020. 
  • 15.8 million mobile money accounts were registered in Ghana as of December 2020, resulting in a penetration rate of 52%. 
  • From 12.6 million in 2019 to 15 million in 2020, Ghana's active mobile money accounts increased by 19.3%. 
  • In Ghana, the number of mobile money transactions increased by 44%, from 1.4 billion in 2019 to 2.1 billion in 2020. 
  • From GHS 313 (roughly USD 53) in 2019 to GHS 322 (roughly USD 55), the average value of a mobile money transaction in Ghana increased each year. 
  • From 8 in 2019 to 11 in 2020, there were licenced mobile money providers in Ghana. 
  • In 2020, it was projected that remittances to Ghana would total USD 3.6 billion, down from USD 3.8 billion in 2019. This represents a 4% decrease. 

These numbers demonstrate Ghana's rapid adoption of mobile money and the significant growth of digital money transfer services overall. The trend towards digital money transfer in Ghana is probably going to continue as long as mobile phone adoption keeps rising and fintech companies continue to develop new products.

Compared to their early days, when transactions could only be made through static website portals or a physical presence at a bank or money remittance company, customers now have a variety of options, including apps, mobile money wallets, and virtual currencies. You can now send money to Ghana in just a few clicks; all you have to do is to avail of ACE's services. 

Evolution of The Money Transfer Industry in Ghana

Over the past few decades, Ghana's conventional to digital money transfer market has significantly transformed. In Ghana's past, traditional methods like banks and money transfer companies were used to transfer money. However, the money transfer industry has undergone a significant shift towards digital platforms with the development of digital technology.

Mobile phone penetration in Ghana has rapidly increased, which has been among the major forces behind this transformation. Mobile money services have become a viable alternative to conventional money transfer methods as more Ghanaians have access to smartphones. Without the need for a bank account, mobile money enables people to transfer money electronically using their smartphones. If you are still confused about online money transfers, read ahead to learn about “Is an online money transfer the best way to send money home from overseas?

Mobile Money Service In Ghana

The introduction of mobile money transfer services in Ghana has been a major factor in expanding the digital money transfer market. The development of fintech firms has been another significant factor in the digital transformation of Ghana's money transfer sector. 

Ghanaian fintech firms have developed ground-breaking products that have simplified the process of sending and receiving money electronically for both private citizens and commercial entities. Mobile apps, online platforms, and blockchain technology have all been used as these solutions. So you better know all the ways how to send money to Ghana via ACE. 

Government Support

The government's support for financial inclusion has also contributed to the growth of Ghana's digital money transfer sector. To expand Ghanaians' access to financial services, the government has implemented policies that promote the use of digital financial services, such as mobile money.

These modifications have led to the development of a digital, more convenient, quick, and secure money transfer system in Ghana from a system that was primarily based on cash. The trend towards digital money transfer is anticipated to continue as more Ghanaians adopt technology and fintech companies continue to innovate, even though traditional money transfer methods are still in use.

Technological advancements and shifts in consumer behaviour have fueled the transition from traditional to digital money transfers. Thanks to the widespread use of smartphones and the internet, people are more accustomed to using digital transactions. Additionally, digital money transfers are frequently more convenient and cost-effective, especially in developing nations where people have little access to conventional banking services.

Final Thoughts

In conclusion, the transition from traditional to digital money transfer signifies a change in how individuals transfer funds from traditional methods to digital platforms, which are more practical, reachable, and affordable. So, making an online money transfer to Ghana has never been that easier. Now ACE Money Transfer provides the easiest ways to do so with full security. 



What was the conventional method of money transfers in Ghana, and what were its limitations?

In the past, traditional money transfers in Ghana involved physical cash transactions or bank wire transfers. These methods had several limitations, such as being time-consuming, requiring individuals to be physically present at a bank or money transfer outlet, and offering limited accessibility for those in remote areas. Additionally, these services often come with significant transaction fees, especially for cross-border transfers.

How has digital technology impacted the money transfer industry in Ghana?

Digital technology has revolutionised the money transfer industry in Ghana, making it quicker, more efficient, and more accessible. The advent of mobile money platforms, online banking, and digital wallet apps has reduced the need for physical cash and in-person transactions. Digital transfers allow users to send and receive money instantly, 24/7, from anywhere in the world, often at reduced costs compared to traditional methods.

What are some key examples of digital money transfer services in Ghana?

There are numerous examples of digital money transfer services in Ghana. These include popular mobile money platforms like MTN Mobile Money and AirtelTigo Money, online banking services provided by most commercial banks, and international digital transfer services like WorldRemit and PayPal. Additionally, fintech startups are continuously emerging to offer innovative digital transfer solutions.

What role has government regulation played in the evolution of the money transfer industry in Ghana?

The Ghanaian government and regulatory bodies like the Bank of Ghana have played pivotal roles in the evolution of the money transfer industry. They have introduced policies that encourage digital financial services, such as enabling mobile money interoperability, reducing regulatory barriers for fintech startups, and enforcing strict cybersecurity laws to protect consumers. These initiatives have significantly contributed to the transition from conventional to digital money transfers.

What are the future trends expected in the digital money transfer industry in Ghana?

Future trends in the digital money transfer industry in Ghana include the adoption of blockchain technology for more secure and efficient transfers, integration of artificial intelligence for personalised customer service, and a push towards financial inclusion initiatives to ensure everyone, including those in remote areas, can access digital financial services. Moreover, the industry is expected to see more competition and innovation as more fintech startups emerge.


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