Ghana had only 68,000 credit cards by end of December

As of the end of December 2024, only 68,000 credit cards had been issued by financial institutions in Ghana, according to data from the Bank of Ghana. This figure represents less than 1% of the total cards in circulation and just about 1% (1.07%) of the 6.3 million debit cards issued during the same period.

The credit card landscape in Ghana contrasts sharply with more advanced economies, where credit cards are more prevalent. For example, about 68% of adults in the UK have credit cards, 82% in the US, and roughly 28% of credit consumers in South Africa use credit cards.

In Ghana, many people mistakenly refer to debit cards as credit cards, especially when using them at point-of-sale (POS) terminals. However, the key difference between debit and credit cards lies in their function. Debit cards, often called ATM cards in Ghana, allow users to spend only the money available in their bank accounts. Credit cards, on the other hand, enable individuals to borrow money from a bank or financial institution. These cards allow users to spend beyond their available funds, effectively borrowing money that must be repaid later, often with interest.

Credit cards in Ghana are not as common as debit cards because they are harder to qualify for. Banks issue credit cards only to individuals who meet specific eligibility criteria, such as a good credit history and a reliable address. Ghana’s poor address system and limited credit scoring infrastructure make it difficult for many people to qualify for credit cards. In contrast, debit cards are issued automatically when individuals open a bank account, making them far more common.

In addition to credit and debit cards, prepaid bank cards are also issued in Ghana. By the end of 2024, there were 561,000 prepaid cards in circulation. Unlike debit cards, which are linked to bank accounts, prepaid cards require users to load money onto the card before use. Cardholders can only spend the amount they have loaded onto the prepaid card, helping them avoid overspending. Customers often choose prepaid cards for specific purposes, such as budgeting.

While bank card usage remains significant, it is gradually being overtaken by mobile money payments. According to a 2024 West Africa Banking Industry Customer Experience Survey, ATM usage in Ghana dropped from 59% in 2023 to 48% in 2024, while mobile money transactions continued to rise steadily. This shift indicates a growing preference for mobile money as a convenient and accessible payment method.

Source: thehighstreetjournal.com