mobile money agents

Opposite to fears that implementation of the Electronic Transfer Levy (E-levy) would collapse the small business of cellular cash agents, there feel to be a new profits stream for them – particularly funds-in transactions, which have develop into the desire of shoppers.

This comes as a outcome of some customers’ desperate attempt to prevent the tax, as transactions finished as income-ins – otherwise known as deposits – have grow to be the purchase of the working day since the 1.5 percent tax arrived into effect about three months in the past.

Alternatively than ship monies by means of their individual cell funds accounts, prospects withdraw the funds and give to an agent to be sent to the destination cellular income account, by which the E-levy in both of those transactions is not used – thereby steering clear of payment of the tax.

On the other hand, this style of ‘smart’ move from buyers is not at all coming as a reduction to the brokers, considering that telecommunication firms nevertheless cost clients .75 per cent of the transaction worth then give commission to the brokers.

Most of the brokers discussed to the B&FT that even while there were panic-withdrawals a few days just after the E-Levy took off, functions picked up right away when patrons realised mobile cash brokers have been exempted from the E-levy fees.

“The onset was a little bit gradual, primarily a working day before the E-levy came into pressure – they did panic-withdrawals. The subsequent day men and women were being fearful to make deposits but when we educated them that there is no E-levy charge on depositing and withdrawals, they arrived back. So significantly so very good, we are handling,” Daniel Osei, a MoMo agent at Kasoa, advised the B&FT.

A further cellular cash agent at Makola Sector who wishes to be called Belinda explained: “Now the funds-in has improved all those who employed to load their wallets do not do that any more, they give us the funds and we do the transfer on their behalf and this doesn’t bring in E-levy. A single way or another, the E-levy has helped us.

“For me, that is how I see it – because the far more funds-in transactions you do, the far more commission you get at the finish of the month from your provider supplier. So the E-levy has really assisted us, the retailers.”

Esther Amoako, also a cell income agent at Djanman close to Weija, instructed the B&FT in an job interview that: “For now, when it comes to deposits, of course, its patronage has greater due to the fact individuals are refusing to transfer cash from their telephones to distinctive numbers.

“They rather come and withdraw and deposit it to the selection which they want to deliver income to so in that space, there is been an increase as in comparison to in advance of when they deposited the dollars on their quantities and did the transfers themselves.

“Now if they have the income on their phones, they withdraw it and check with me to send out it on their behalf. This will mirror into fee from the Telcos at close of the month. So in other words, additional funds for us.”

Lawful or illegal

The challenge of whether or not it is lawful or illegal for cellular cash agents to undertake these transactions has come to be debatable immediately after a member of the E-levy Complex Committee, Patrick Frimpong Danso, stated on a neighborhood tv community, UTV, that the apply is illegal.

But the brokers disagree, declaring they are only undertaking deposits, which their procedure allows them to do, and are permitted by the telecommunication corporations (Telcos).

“We do not do transfers, we do income-in money-out. We do deposits and withdrawals we really do not transfer. You can not even transfer from a merchant SIM. Transfer is only on the subscribers SIM. The subscriber does not have deposits on their quantities, it is brokers who have the deposits,” Mrs. Amoako mentioned.

“Prior to the E-levy, the network suppliers informed us not to transfer income to other people on the consumers behalf, but it didn’t function mainly because most of the clients declare they are not able to do the transaction by themselves,” Belinda reported.