Swipe, tap, send and watch the profits leave: The unseen economics of our digital payments

Payments in Ghana may seem modern, but they are complex. Mobile money is the preferred payment method. Companies like MTN, AT, and Telecel drive this trend. Over 70% of adults now use mobile wallets.

Card usage remains low at under 15%. Yet, Visa and Mastercard still charge fees on every transaction. This includes swipes, online checkouts, and tap-to-pay moments. Even without physical cards, these networks earn money.

Every participant in this system profits from your transactions. Issuers like banks or fintechs earn from interchange fees and interest. Acquirers take a cut for each cedi processed by merchants. Card schemes like Visa and Mastercard charge for using their services.

Payment gateways such as ExpressPay or Flutterwave also charge fees. Aggregators simplify this process for small businesses while profiting from volume. In this payment pyramid, value flows upward.

Ghana's digital economy infrastructure appears local but is often foreign-owned. Many systems rely on global networks we do not control. Our banks settle payments on foreign rails and pay foreign tolls.

Users enjoy a smooth experience but may not realize the costs involved. GhIPSS has made progress with platforms like Gh-Link and GhanaPay. These aim to keep more value within Ghana’s economy.

However, local initiatives often lack the scale of global players like Visa or Mastercard. A sovereign card scheme needs trust and acceptance to grow effectively.

What could be an alternative? Imagine a Ghanaian-built payment system designed for Africa's needs. It should be mobile-first and ISO-compliant to serve multiple countries across the continent.

This approach would focus on being "Built for AFRICA," not just "Made in Ghana." The global payments industry is worth $2 trillion, with Africa's share growing rapidly.

Ghana must decide: continue paying tolls or start collecting them instead. Building a homegrown payments infrastructure could retain more value locally.

Such an initiative would reduce reliance on foreign technology and enhance data sovereignty. It could also attract fintech investment in Ghana’s market.

Capital markets would take notice along with regulators and startups seeking relevant infrastructure. Seamless payments benefit users but involve complex monetization behind the scenes.

If Ghana wants to thrive in this space, it must create its own path forward.

Author's Note: This analysis reflects my observations in Ghana's digital finance ecosystem. I welcome feedback from industry peers to foster understanding of financial inclusion in emerging markets.

The writer has nearly ten years of experience in Supply Chain Management with advanced degrees and certifications related to digital finance.