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The Future Of The Money Transfer Industry In Ghana With Wearable Technology

The Future Of The Money Transfer Industry In Ghana With Wearable Technology

10 Nov 2023


Making online money transfer to Ghana is no longer difficult because of how far the money transfer industry has come. Due to the extensive networks of intermediaries, time-consuming paperwork, and hidden fees, sending money abroad has historically been difficult and expensive.

The industry has changed over the past few years, allowing many people and even small to medium-sized businesses to benefit from faster, more affordable, and value-added foreign money transfer services.

Larger corporations, banks, and governments have historically reaped these benefits due to their direct access to the institutional foreign exchange market, which transacts $4.8 trillion daily transactions. Payments can be made internationally thanks to money transfer operators (MTOs).

The remittance sector is, without a doubt growing quickly. Growing globalization has increased the likelihood of people relocating to other countries for better employment opportunities.

Let's look at how the transition from conventional methods to modern digital platforms for money transfers has affected remittances to Ghana from abroad.

What Exactly Are Wearable Payment Systems?

The clothing, technology, and accessories you use to make contactless payments are known as wearable payment devices. The most popular designs include rings, belts, jackets, fitness trackers, and smartwatches. They use services like Apple Pay, Samsung Pay, and Google Pay to link the device with the customer's bank account.

Wearables are here to stay, with a projected market value of $20.64 billion by the end of 2022, not just in telecom, retail, or healthcare but also in payments and banking. In the pandemic era, the market for wearables was accelerated by shifting consumer priorities and fintech developments. Contactless wearables are the way to go for millennial, Gen X, and Gen Z consumers who want safe, practical, instantaneous transactions.

The future of wearables is predicted to advance further as consumers and financial institutions move toward a cashless, digital world, growing at a CAGR of 11.5%. Some wearable payment systems could eventually function as "one-stop shops" for a variety of services.

An example of a wearable provided by Disney Land to guests is Disney's Magic Band. The magic band is a multi-purpose device that looks like a cool wristband and serves as a payment method, a personal tracker, and an access key. Additionally, it works with many different smartphone models and technological platforms.

The Rise of Wearable Technology: Exploring the Future Impact of Money Transfers in Ghana

Over the past few years, wearables have gained much popularity as the newest "it" device for fitness and health. Since portability and convenience are now at the forefront of technological advancements in gadgets, a revolution in banking is being paved by these developments. 

Given that they can easily be incorporated into daily activities and are always on, smartwatches may be the most convenient way to combine portability and convenience.

The ability to send money to Ghana with just a gesture rather than with cash or a credit card, however, necessitates more than just a device; it also necessitates the gathering and organizing of an individual's data. Wearables are now incorporating financial information to make payments, replacing the need for storing credit and debit card data that can be lost, damaged, or digitally corrupted.

As financial institutions seek to deepen their client relationships, wearable technology innovation is advancing increasingly. These days, you have chatbots and ways to contact financial institutions via smart devices. In the not-too-distant future, you can make payments by making a straightforward motion with your hands and fingers.

Financial services providers are working to create technology that will safeguard customers from fraud and improve payment performance. Additionally, wearables have the potential to improve customer interaction with their financial institution.

This is a great selling point for banks as they work to lessen the disruptions that automation and technology impose on interpersonal communication. You can check out the Evolution Of The Ghanaian Money Transfers Industry: From Conventional To Digital. 

How Do Banks And Fintechs Benefit From Wearables?

Here are a few of the points where banks and fintech companies benefit from wearables: 

Data availability

Due to their frequent use by customers, wearables give banks access to a wealth of data. Gained customer intelligence can be used to improve experiences and customize goods and services. For data extraction and analytics, wearables are essential.

Customer Service Customization

The need to be customer-centric is now understood by financial institutions and fintech. Furthermore, data gleaned from wearables has been shown to personalize and improve customer interactions. By using real-time data, wearables can forecast customer behaviour and target them with recommendations and tailored offers.

User Experience Across Channels

The omnichannel customer experience can be greatly improved by combining IoT and wearables. With wearables, banks and fintech companies can gain a competitive edge. One example is the use of smartwatches for ATM withdrawals and biometric transactions.

Risk Analysis

By evaluating potential factors, banks, and fintech must reduce risk. Analyzing customer information gleaned from wearables can improve risk management choices made regarding lending and insurance, among many other things. If you send money to Ghana online using ACE, there will be zero risks.

Statistics On Ghanaian Remittances

The stats below provide information on how the Ghanaian money transfer market has evolved:

The number of mobile money transactions in Ghana increased significantly from GHS 467.6 billion (or roughly 79 billion USD) in 2019 to GHS 679.17 billion (or roughly 115 billion USD) in 2020. By the end of 2020, Ghana had registered 15.8 million mobile money accounts, for a penetration rate of 52%. Ghana saw an increase in active mobile money accounts of 19.3%, from 12.6 million in 2019 to 15 million in 2020. 

From 1.4 billion transactions in 2019 to 2.1 billion in 2020, there were 1.4 billion mobile money transactions in Ghana. The average cost of a mobile money transaction in Ghana rose annually, rising from GHS 313 (roughly USD 53) in 2019 to GHS 322 (roughly USD 55). Ghana had 11 licensed mobile money providers in 2020 compared to 8 in 2019. According to projections, remittances to Ghana will amount to USD 3.6 billion in 2020, down from USD 3.8 billion in 2019. This results in a 4% decline. 

These figures show how quickly mobile money has taken off in Ghana and the overall significant expansion of digital money transfer services. As long as the adoption of mobile phones keeps increasing, and fintech companies keep creating new products, the trend toward digital money transfer in Ghana is likely to continue.

The switch from traditional to digital money transfer denotes a change in how people transfer money from traditional methods to digital platforms, which are more useful, accessible, and reasonably priced. It is now much simpler than ever to send money to Ghana online. ACE Money Transfer now offers the simplest methods to do so with complete security.

Bottom Line 

The development of mobile money transfer services in Ghana has significantly increased the market for digital money transfers. Another important aspect of Ghana's money transfer industry's digital transformation has been the growth of fintech companies. 

Ghanaian fintech companies have created ground-breaking goods that have made it easier for private individuals and business entities to send and receive money electronically. These solutions have all been implemented using blockchain technology, online platforms, and mobile apps. So, you should know all available ACE payment options for money transfers to Ghana.

FAQs

How Will Wearable Payments Develop In The Future?

Because wearable devices are becoming more widely used because they are being integrated with digital wallets and because wearable payments are being introduced to more markets, the future of wearable payments is promising. As technology develops, you can anticipate even more exciting changes in the wearable payments industry.

 

What are the anticipated future trends for Ghana's digital money transfer sector?

Future developments in Ghana's digital money transfer market include the use of blockchain technology to make transfers more secure and effective, the incorporation of artificial intelligence to provide individualized customer service, and a push for financial inclusion programs to ensure that everyone, including those living in remote areas, has access to digital financial services.

 

Why would a bank use wearable technology?

Through increased security, wearables can also help financial institutions. A lot of these devices use biometric security, like fingerprints or other physically unrepeatable signatures, to authenticate each user and lower the risk of fraud.


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