The Bank of Ghana’s decision to revoke Zeepay Ghana Limited’s Dedicated Electronic Money Issuer (DEMI) licence marks one of the most significant developments in the country’s fintech sector. The move follows ongoing legal disputes, debt recovery actions, and heightened regulatory scrutiny surrounding one of Ghana’s most prominent fintech firms.
Issued on April 20, 2020, under the Payment Systems and Services Act, 2019 (Act 987), the DEMI licence had made Zeepay the first local fintech authorised to operate as an electronic money issuer, with a mandate to advance financial inclusion. It enabled the company to provide services such as cash-in and cash-out transactions, peer-to-peer transfers, bill payments, airtime top-ups, and international remittances.
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The revocation now raises pressing questions: what led to this outcome, what are its implications for the sector, and what should customers and the wider market expect next?
Here’s what you need to know.
What’s happened?
The Bank of Ghana has withdrawn Zeepay’s licence to issue electronic money with immediate effect. According to the central bank, the decision followed repeated breaches of the Payment Systems and Services Act, 2019 (Act 987), after the company allegedly failed to maintain enough cash to fully support the electronic money held in customers’ wallets. In simple terms, the regulator says the value of electronic money circulating on Zeepay’s platform exceeded the actual funds that should have been held in reserve to protect customers.
The Bank of Ghana said it directed Zeepay to correct the shortfall and inject additional funds, but the company allegedly failed to comply. It also said Zeepay did not follow instructions to wind down its electronic money operations. The regulator concluded that allowing the company to continue operating under its DEMI licence could threaten confidence in Ghana’s digital payments ecosystem.
Why the tough sanction?
Electronic money issuers perform a role similar to banks in one important respect. What they do is to hold customer funds that must always be fully backed by cash or approved assets. This requirement exists because customers expect to withdraw or transfer their money at any time. If an electronic money issuer creates more digital value than it has cash to support, customers could be exposed if many people attempt to access their funds simultaneously. For that reason, maintaining full backing of customer balances is one of the most important prudential requirements under Ghana’s payment systems law. The Bank of Ghana says Zeepay failed this test despite several regulatory interventions.
Is this connected to legal woes?
Although the Bank of Ghana’s regulatory action is distinct from ongoing court proceedings, both have heightened scrutiny of Zeepay. The company is currently the subject of a creditor’s petition seeking its liquidation over an alleged unpaid debt of US$1.223 million. The petitioner claims Zeepay has failed to meet repayment obligations and is unable to settle debts as they fall due—allegations that remain before the courts.
Zeepay has dismissed media reports suggesting the matter is resolved, stressing that the case is still before the Court of Appeal. In a separate development, enforcement actions have led to the seizure of assets linked to founder and CEO Andrew Takyi‑Appiah in connection with the dispute. While legally separate from the Bank of Ghana’s licence revocation, these proceedings collectively intensify pressure on the fintech firm.
Has Zeepay been shut down completely?
Not necessarily.
The Bank of Ghana has revoked only Zeepay’s Dedicated Electronic Money Issuer licence. It is worth noting that this is not the first regulatory action the Bank of Ghana has taken against Zeepay. The central bank previously fined the company and suspended its foreign exchange licence for failing to apply the average interbank exchange rate published by the Bank of Ghana. That suspension was subsequently lifted.
However, it remains unclear whether the revocation of Zeepay’s Dedicated Electronic Money Issuer (DEMI) licence has any implications for its foreign exchange operations. The Bank of Ghana is expected to provide further clarity on whether the company’s foreign exchange activities, if any, are affected by the latest regulatory action.
Whether other parts of the business such as card services, ATM services, bank account services, digital token solutions for international money transfer operators, payment services, subscription payments, international airtime and refugee payment solutions, will continue to operate will depend on the company’s remaining licences, the outcome of ongoing court proceedings and any further regulatory actions. The immediate effect of the decision is that Zeepay can no longer operate as a licensed electronic money issuer under the revoked authorisation.
What next for customers?
For existing wallet holders, agents and merchants, the immediate concern is access to their funds. The Bank of Ghana says it has established support channels to assist affected customers and has assured the public that measures are being taken to manage the transition.
Customers who require assistance have been directed to contact the central bank’s support team on 0593974486. The regulator’s intervention is intended to minimise disruption while protecting customer interests. While the Bank of Ghana has indicated that support arrangements are being put in place for affected wallet holders, agents and merchants, it has not yet outlined the specific measures that will be implemented.
The nature of any customer protection or compensation framework, if required, is therefore expected to become clearer as the regulator provides further guidance.
Should the fintech industry be concerned?
The decision sends one of the strongest regulatory signals since Ghana modernised its digital payments framework. It reinforces the message that rapid innovation and business expansion must be matched by strong governance, effective risk management and strict compliance with prudential rules.
For investors, payment service providers and fintech founders, the case highlights the importance of liquidity management, capital adequacy and regulatory engagement. It also demonstrates that the Bank of Ghana is prepared to use its enforcement powers where it believes customer funds or financial stability could be at risk.
Why this matters?
Several processes are now expected to unfold simultaneously. First, the Bank of Ghana will oversee the regulatory consequences of the licence revocation and monitor arrangements affecting customers. Second, the courts will continue hearing the creditor’s petition and related legal proceedings involving Zeepay. Third, Zeepay may pursue any legal remedies available to challenge regulatory or judicial decisions if it chooses to do so.
Until those processes are concluded, significant questions remain over the future of one of Ghana’s most recognisable fintech brands. Beyond Zeepay itself, this case represents an important test of Ghana’s regulatory framework for digital financial services.
From a corporate governance perspective, the revocation of the DEMI licence does not automatically mean the company will cease to exist. Any restructuring, winding down or dissolution of the affected part of the business would be subject to the relevant legal and regulatory processes.
Source: Nii Larte Lartey
