MTN MobileMoney faces backlash over cash-out fee increase amidst economic hardship
Meanwhile, competitors such as Vodafone Cash and GhanaPay took a more customer-centric approach by waiving transfer fees altogether, thereby easing the financial strain on Ghanaians. Notably, all three providers maintained a maximum cash-out fee of GHS10 until now.
In a move met with discontent, MTN MobileMoney Limited, Ghana’s leading mobile money service provider, has come under scrutiny for its decision to raise cash-out transaction fees starting July 1, 2023. As the nation battles economic hardship, including soaring inflation, escalating prices, job losses, and stagnant incomes, MTN’s fee hike has drawn sharp criticism from consumers.
The company’s SMS circular to customers revealed that cash-out transactions up to GHS2,000 will now attract a 1% fee, while any transaction surpassing GHS2,000 will incur a maximum charge of GHS20. This adjustment represents a significant departure from the current fee structure, which imposes a 1% fee for cash-out amounts up to GHS1,000, with a cap of GHS10 for transactions exceeding that threshold. Consequently, cash-out transactions ranging from GHS1,000 to GHS2,000 will no longer be limited to a maximum fee of GHS10.
At a time when Ghanaians are grappling with the adverse effects of economic challenges, the decision to raise cash-out fees has ignited further frustration among the populace. Furthermore, the introduction of an electronic transfer levy (e-levy) earlier imposed a 1% charge on digital financial transfers, exacerbating the financial burdens faced by individuals. In response to this levy, MTN had previously reduced mobile money transfer fees from 1% to 0.75%, offering customers a modicum of relief. Meanwhile, competitors such as Vodafone Cash and GhanaPay took a more customer-centric approach by waiving transfer fees altogether, thereby easing the financial strain on Ghanaians. Notably, all three providers maintained a maximum cash-out fee of GHS10 until now.
Adding to MTN’s challenges, mobile money merchants have recently raised grievances regarding the company’s failure to revise their commissions despite the years of service rendered. Accusations of unfair treatment and lopsided reconciliation processes for agent commissions have further strained relations between MTN and its network of agents.
While MTN has yet to provide a clear rationale behind the cash-out fee increase, speculation suggests that the move may be an attempt to generate additional revenue to bolster agent commissions. However, this decision has stoked widespread criticism, with many viewing it as an undue burden placed upon customers already grappling with economic hardships.
As the fee hike looms, MTN MobileMoney Limited faces mounting pressure to justify its decision in the face of public backlash. With economic concerns weighing heavily on Ghanaians, the coming days will likely see intensified scrutiny and calls for greater transparency from the mobile money service provider.
