Amanze Chinonye
Ghana has taken a decisive step in Africa’s digital finance evolution, transforming its national identity card into a fully functional payment instrument in a move aimed at deepening financial inclusion and strengthening domestic payment sovereignty.
The upgrade to the Ghana Card, announced by the National Identification Authority, enables cardholders to perform a wide range of financial transactions, including withdrawing cash from ATMs, making payments at retail outlets and online platforms, and sending money across borders potentially in more than 200 countries.
The development positions Ghana as the first country on the continent to embed a digital wallet into a national identity card at scale, effectively merging identity verification with financial access.
Join our WhatsApp ChannelAt the heart of the system is Ghana Interbank Payment and Settlement Systems, the national payment switch operated under the Bank of Ghana. The platform connects banks, mobile money operators and payment service providers, allowing the Ghana Card to function seamlessly across the country’s financial ecosystem.
Unlike traditional debit or credit cards, the Ghana Card’s payment feature is not tied to a single financial institution. Instead, it operates as a universal platform, enabling users to link existing bank accounts without changing providers.
Cardholders can activate the wallet through the MyCitizens mobile application or via a USSD code on any mobile phone, widening access even for users without smartphones.
The payment rollout builds on what authorities describe as a “triple-purpose” vision for the Ghana Card serving as an identity document, a travel credential and now a financial tool. Its e-passport functionality, activated in 2022, allows the card to be used as a passport in nearly 200 countries, further consolidating multiple services into a single piece of identification.
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Driving Financial Inclusion
The move comes against the backdrop of low card usage in the country, with credit card penetration estimated at just 0.6 percent in 2024. By embedding a wallet into a widely held national ID, the government is attempting to bypass traditional banking barriers that have excluded millions from formal financial services.
The approach allows users to access digital payments without necessarily opening new bank accounts or applying for conventional credit cards, aligning with broader efforts to bring the unbanked and underbanked into the financial system.
Industry observers say the model could significantly accelerate inclusion by leveraging an existing national database rather than building new customer acquisition systems from scratch.
Reducing Dependence on Foreign Networks
Beyond inclusion, the initiative reflects a strategic shift toward payment sovereignty. By routing transactions through domestic infrastructure, Ghana aims to reduce reliance on international card networks such as Visa and Mastercard, thereby retaining more transaction value within the local economy.
Officials have emphasised that the goal is not to eliminate global payment systems but to prioritise homegrown solutions that offer greater control over costs, data and financial flows.
The Ghana Card’s embedded chip now connects directly to the country’s banking and digital payment network, reinforcing the role of local infrastructure in everyday transactions.
Nigeria’s Early Experiment
While Ghana’s rollout is being framed as a continental first, the idea of combining identity and payments has earlier roots in Africa’s largest economy.
In 2013, Nigeria introduced a multipurpose national e-ID card through the National Identity Management Commission, linking it to the National Identification Number and embedding payment functionality through a partnership with Mastercard. The card was designed to enable ATM withdrawals, retail payments and access to government services, positioning it as an ambitious financial inclusion tool at the time.
However, the initiative struggled to gain traction. Limited card issuance and distribution challenges meant that many Nigerians never received the payment-enabled card, as authorities prioritised expanding the national identity database over mass deployment of the physical card.
More than a decade later, Nigeria is revisiting the concept with plans for an upgraded General Multi-Purpose Card, developed in collaboration with financial regulators and domestic payment platforms, including the AfriGo card scheme, in a renewed push to integrate identity, payments and public services.
The contrast underscores a key distinction: while Nigeria pioneered the concept, Ghana is emerging as the first country to operationalise it at scale within a fully integrated national payment ecosystem.
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Digital Push
The upgrade is the latest step in Ghana’s broader effort to strengthen its digital payment ecosystem.
The country already operates interoperable mobile money networks and domestic platforms such as the e-zwich biometric smart card, all designed to enable seamless transactions across banks and telecom operators.
By integrating payment functionality into the national ID, authorities are combining identity verification and financial access into a single, unified system.
There are also indications of future expansion. The NIA has signalled interest in potential collaborations, including using the Ghana Card as a platform for specialised transactions such as gold trading through the national gold authority, though such features have not yet been formally activated.
A Model for Africa?
If widely adopted, Ghana’s identity-based payment system could offer a blueprint for other African countries seeking to bridge the gap between identity management and financial access while strengthening domestic payment rails.
For users, the appeal is immediate: one card to verify identity, access government services, travel and now make payments.
Additional features such as insurance coverage and emergency assistance have also been outlined, pointing to the possibility of a broader service ecosystem built around the card.
For policymakers, the implications are far-reaching greater financial inclusion, improved transaction transparency and stronger control over national payment systems.
As implementation expands, the success of the initiative will likely depend on how quickly financial institutions integrate with the platform and whether public trust keeps pace with the technology.
For now, Ghana has made its position clear: a national ID is no longer just proof of identity, it is becoming a gateway to the economy.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
