The ‘No ID, No Transactions’ program, announced by MTN to MoMo service subscribers, will starts effectively from the first day of February 2020.
Therefore, merchants would ask for a valid ID before approving a mobile money transaction for cash-outs.
Mobile money subscribers have made lots of complaints over the years about so many MoMo-related frauds due to the country’s growing level of cybercrimes.
As one of the leading mobile telecommunications giants in Ghana, MTN wants to safeguard subscribers’ mobile money accounts from the growing number of fraudsters to shield MoMo accounts from fraudulent withdrawals.
Ghana Card, Driver’s License, Passport, Voter’s ID Card, and SSNIT Card are valid IDs that MoMo merchants can accept for transactions. MoMo subscribers who do not obtain any of the above IDs may be able to make purchases on the NHIS card.
Before trying to make transactions, having to provide IDs to merchants is both a boon and a ban for subscribers of Mobile Money.
As long as they intend to do a mobile money transaction, mobile money subscribers will have to ensure that they have IDs on their own.
For otherwise, the merchant will have to enforce the ‘No ID, No Transactions’ sanction on subscribers who would not present a valid ID by default.
On Sunday (January 17, 2021), an MTN agent said that with the recent spike in mobile money transaction-related fraud in the world, the ‘No ID, No Transactions’ to which MTN is resorting is necessary to protect subscribers’ MoMo accounts.
With the ‘No ID, No Purchases’ policy proposal, with pin code alone, it would be difficult to remove money from MoMo wallet. Not even the MoMo wallet owner can.
The new order would also include the high number of fraudulent mobile money transactions that occur when a user loses in the wrong hand a phone or security code to a mobile money wallet.
Mobile money service users will no longer be able to sanction a third party to make a transaction on their behalf with their wallets, as doing so would also indicate that they have to add their valid ID.
We do not know for sure right now whether or not a merchant will allow a holder of a legitimate ID belonging to another person to make the transaction on behalf of that person.