Bank of Ghana Revokes Zeepay’s E-Money License Over Persistent Regulatory Violations

The Bank of Ghana (BoG) has officially revoked the Dedicated Electronic Money Issuer (DEMI) license of Zeepay Ghana Limited, effective immediately. The central bank cited a series of persistent regulatory breaches and non-compliance with the Payment Systems and Services Act, 2019 (Act 987) as the primary drivers for the decision. Central to the revocation is Zeepay’s failure to maintain the necessary cash reserves to back the electronic money issued to its customers. According to the regulator, this lack of cash backing posed significant operational risks and threatened the overall stability of the national payment ecosystem. Despite several warnings and directives from the central bank to rectify its capital deficiencies and financial practices, Zeepay reportedly failed to comply, prompting this decisive enforcement action.

Beyond technical regulatory breaches, the revocation follows a string of legal and financial challenges for the fintech firm. Zeepay has recently been embroiled in significant legal disputes, including a court ruling requiring the company to pay over $11.6 million for failed fund transfers and a separate winding-up petition filed by a creditor over an unpaid debt of approximately $1.223 million. While Zeepay has previously denied wrongdoing in these legal battles, the Bank of Ghana emphasized that the company's inability to fulfill regulatory fund injection mandates and its ongoing liquidity concerns made the license revocation necessary to safeguard consumer interests and maintain public confidence in digital financial services.

In response to the development, the Digital Chamber of Ghana has moved to reassure the public and international investors regarding the stability of the country’s digital payments ecosystem. While acknowledging Zeepay’s historical contributions to financial inclusion and cross-border remittances in the region, the Chamber stated that the revocation is an isolated regulatory action pertaining to a single institution. The Chamber emphasized that Ghana’s digital finance sector remains robust, operating under a strong regulatory framework designed to ensure compliance and innovation. They further confirmed their commitment to collaborating with the Bank of Ghana to manage the transition and protect impacted customers.

As operations for Zeepay’s electronic money services cease, the Bank of Ghana has established dedicated support channels and a helpline for affected wallet holders, agents, and merchants. Impacted parties are advised to contact the central bank’s complaints office to seek assistance in securing and reclaiming their balances. While the revocation specifically targets Zeepay’s ability to operate as an electronic money issuer, the implications for the company’s other business arms, such as its foreign exchange operations, remain under scrutiny. This action serves as a stern reminder from the regulator regarding the importance of liquidity management and strict adherence to financial protocols within Ghana’s evolving fintech landscape.