Prospects and Challenges of Cashless Economy in Ghana

Abstract

This study examined the prospects of Cashless Economy in Ghana. It also identified challenges Ghana faces it goes cashless. Finally, it assessed stakeholders’ readiness for cashless economy. The study employed purposive sampling technique to select Ministry of Finance (MOF), and Simple random technique to select 13 Universal Banks and 50 SMEs that constituted the sample size of the research. An interview guide assisted in extracting relevant information from MoF, whereas structured questionnaires were designed to facilitate the acquisition of relevant data from Universal Banks and SMEs. Descriptive statistics was employed to analyse and present data. The findings of the study revealed that cashless economy enhances GDP growth. This was reinforced by benefits of cashless system for various stakeholders which include; ease in transactions by government, increased security for all partners, greater efficiency in the public sector, reduction in corruption in public sector, 24/7 customer service, less congestion at offices, reduction in operational cost, increased bank efficiencies, fewer customers complaints, reduction in money Laundry, Convenience in business operation, enhancement of accountability, among others. The study also identified Cyber-attacks, high illiteracy rate, identity theft, unreliable networks, extra transaction charges as major challenges to cashless economy. Furthermore, the findings revealed that as Government was not fully ready to migrate Ghana to cashless, stakeholders appeared to be ready for cashless system. It is recommended that government should partner with stakeholder and invest in cyber security and also provide educational platforms for businesses and citizens to equip themselves with technological knowledge in order to safeguard against this threat. Again, government should engage banks and telecoms, in a ways of providing incentives for them, introduce policy that would eliminate charges associated with transacting digitally.