Something new is coming to town this April 2008. E-zwich.
What is E-Zwich? E-Zwich is the brand name for the National Switch, under the new Universal Electronic Payments (UEPS) technology which would ensure that all commercial banks, rural banks and savings and loans institutions in Ghana implemented a common payment platform and biometric Smartcard.
To make this technology really feasible, the Bank of Ghana [BOG] (Ghana’s central bank) has issued a directive that all banks linked their ATMs & Point of Sale (POS) terminals to the National Switch, the E-ZWICH by March 31, 2008. Banks with existing switches are expected to upgrade them to make them compatible with the National Switch by July 1, 2008 while banks without switches/ATMs / POS terminals are expected to integrate their payment terminals directly into the National Switch or through a E-ZWICH compatible switch.
The advantages of this new national payment platform are enormous. A customer using a credit/debit/ATM card issued by a rural bank, can access cash from just about any ATM in any city or town in Ghana, and use it to effect payment for goods and services at stores equipped with POS terminals. A city dweller will also be able to access funds via ATMs in the deepest parts of Ghana (where ATMs exist).
Hitherto, other payment platforms existed in Ghana, with VISA being the leading payment platform/ATM network.
VISA
Barclays Bank, CAL Bank, Ecobank, SG-SSB, Stanbic Bank and Standard Chartered Bank (4 out of the 6 listed are leading banks in Ghana) all have their ATMs hooked to the international VISA platform respectively, as well as issue VISA cards. As of today, customers of any of these banks can use the ATMs of any of the other banks.
Etranzact
This payment platform currently links only UBA Ghana Limited and Zenith Bank Ghana. I am aware that UBA has Etranzact POS terminals in their main branch but I am not very sure if all their ATMs/cards are linked to Etranzact.
If you asked me, I’d say frankly, Etranzact has no chance of competing with the new E-Zwich unless they can add useful and functional value-added-services that will not be available on E-Zwich.
Mastercard
Ghana Commercial Bank (GCB) - the bank with the largest/widest branches in Ghana - announced it would be issuing Mastercard products last year, as well as upgrade its ATMs nationwide to link with the international Mastercard payment platform. Mastercard credit/debit card holders from anywhere around the world will be able to use their cards on GCB ATMs in Ghana and GCB customers will be able to use their cards on Mastercard ATMs around the world.
From the information I got on Mastercard’s website, some 5 ATMs distributed across Accra, Tema, Kumasi and Takoradi are currently linked to the international Mastercard platform. I do not have an independent confirmation of this.
Mondex (defunct?)
I am not sure if this platform is still functional but at a time, it linked Ghana Commercial Bank (GCB) and Agricultural Development Bank (ADB) ATMs.
Bottomline? E-Zwich will not kill the other current payment platforms in Ghana. It would amongst other things significantly improve the network connectivity of ATMs in the west African country and bring about much more convenience for end-users.
15 responses so far ↓
1 Kobby Owusu // Feb 1, 2008 at 12:33 pm
Thanks for the comment on my blog. Frankly I had jsut been debating with myself whether E-zwich was referring to the UEPS platform or a brand to compete with VISA (the predominant brand in Ghana). Your article clears the isssue up and I think
E-zwich will be the eventual winner since VISA never really showed commitment to actively promoting VISA Horizon paltform.
I just hope the adoption and take up rate happens quickly enough because i just can’t want to explore teh e-commerce opportunities in Ghana.
2 Emmanuel.K.Bensah II // Feb 8, 2008 at 4:18 pm
cannot wait!! Thanks for ur clear entry!!!;-))
3 Betty // Feb 11, 2008 at 4:45 pm
The blog on E-Zwich is informative. Thanks keep it coming
4 -::|Oluniyi David Ajao|::- // Feb 14, 2008 at 5:43 am
Etranzact Cardholders can use their cards in Ghana and Nigeria
A news item on Vanguard’s website indicates that Nigerian-issued Etranzact cards can be used on Etranzact-linked ATMs in Ghana and vice-versa:
A very big one is the possibility of Nigerian and Ghanaian eTranzact cardholders to withdraw cash from …
5 andy apeagyei // Feb 25, 2008 at 6:38 pm
i think this all help us.those who do not have a bank account.i hope is this will be also avialable for the age of 14 and above or less than 14 if it will be secured
6 sampson Aboagye jnr // Mar 3, 2008 at 12:30 pm
knowledge is aquided through learnind and i will be the happiest man to have knowledge and wisedom.
7 sampson Aboagye jnr // Mar 3, 2008 at 12:37 pm
i think financial issues have to be interpretated to bank customers and all to help fight ignorance to financial terms and processes
8 junior // Mar 10, 2008 at 8:05 pm
i think what andy said is right,that i a good idea in america thats what we use to do.
9 Freeman Owusu Brobbey // Mar 14, 2008 at 9:05 am
In fact we students can’t wait to see E-Zwich come into operation, but we hope the charges on it will not be that exorbitant so that we all can afford it.God bless the minds behind such a great discovery.
10 sifelam // May 14, 2008 at 8:45 am
It is amazing how fast our financial sector is developing. Equally disgusting is how the real sector of the economy is struggling to stand up to the rapidly changing and developing finanacial sector. A more radical approach on policies will be needed to translate these growth in the finanacial sector with the real sector else unemployment and inflation will always hit us in the face as we are seeing now.
11 saintyevo // May 17, 2008 at 2:34 pm
i just want to know much information about the e-zwich
12 Amartey Amarteifio // May 25, 2008 at 11:59 am
I would like disagree with Mr Ajao about E-zwich/ Etranzact comparison.
Etranzact has already exhibited useful and functional value-added-services that will not be available on E-Zwich. These include amongst others…………..real online payments that are currently being utilized on websites such as http://www.mykayaonline .com (an online grocery shopping and errand delivery service within the Accra-Tema metropolis)
With the rate at which Ghana is developing, there is going to be a huge demand for local online payment systems and i believe Etranzact is in a good position to carve a niche for themselves.Does anyone disagree?
13 Fred de-Graft Adjei // Jun 4, 2008 at 4:17 pm
As part of the security measures, what should i do if i am attacked by an armed robber with the machine and he forces me to slot my card into his machine to load all my money unto his machine at a gunpoint?
who qualifies to own one of the machines?
14 freeman // Jun 26, 2008 at 2:43 pm
In fact the e-zwich is taking too long a time to come into operation i thought you said it was going to come around April or May there about why is it not still out yet.
15 Oluniyi David Ajao // Jun 26, 2008 at 2:58 pm
Freeman, e-zwich was officially launched by President Kufuor, weeks ago and is already in use in several stores here in Accra and other parts of the country. It is not yet as widespread as it should be, but it is getting popular by the day.
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