Bank of Ghana Revokes Zeepay's Electronic Money License Over Persistent Regulatory Breaches

The Bank of Ghana (BoG) has taken the decisive step of revoking the Dedicated Electronic Money Issuer (DEMI) license of Zeepay Ghana Limited, effective immediately. This regulatory action follows a pattern of persistent non-compliance with the Payment Systems and Services Act, 2019 (Act 987). The central bank cited multiple breaches, most notably the company’s failure to maintain sufficient cash backing for the electronic money it issued to customers. By issuing e-money without the necessary reserves, the BoG argued that Zeepay introduced significant operational risks that jeopardized consumer protection and the overall stability of the national payment system.

The revocation comes amid a backdrop of escalating legal and financial challenges for the fintech firm. Reports indicate that Zeepay has faced intensified scrutiny following a court ruling requiring it to pay over $11.6 million for failed fund transfers, alongside a separate petition from a creditor seeking to wind up the company over an unpaid debt of approximately $1.22 million. Despite multiple warnings and directives from the BoG to rectify its capital issues and adjust its financial practices, the central bank noted that Zeepay failed to fulfill regulatory mandates for fund injections. This ongoing failure to comply was ultimately deemed a direct threat to the integrity and soundness of Ghana's digital finance sector.

In response to the development, the Digital Chamber of Ghana has moved to reassure the public that the country’s digital payments ecosystem remains robust and stable. While acknowledging Zeepay’s significant historical contributions to financial inclusion and cross-border remittances in Africa, the Chamber expressed its respect for the central bank’s regulatory oversight. The Chamber emphasized that this license revocation is specific to Zeepay and does not reflect the broader health of other financial institutions within the sector. It urged affected customers, agents, and merchants to remain calm and follow official guidelines from the regulator, noting that the Digital Chamber is collaborating with the BoG to ensure impacted parties are supported.

Moving forward, the Bank of Ghana has instructed all Zeepay wallet holders and stakeholders to contact its dedicated complaints office or support team for assistance in securing their balances. While the revocation specifically targets Zeepay's status as an electronic money issuer, the implications for its other services, such as foreign exchange operations, remain to be fully clarified. This enforcement action serves as a stark reminder to the fintech industry regarding the critical importance of liquidity management and strict adherence to regulatory frameworks to maintain public confidence in Ghana's burgeoning digital economy.