Transol to apply for certification to issue Visa and MasterCard

Accra, April 8, GNA - Visa and MasterCard could soon be issued locally, following the decision of Transaction Solutions (TranSol) Ghana Limited, an Information Technology solution firm, to apply for certification for a third party processing status. Currently, three banks in Ghana process their Visa transactions in Egypt. When the application is approved, local banks which use such cards can have them issued by Transol.

Speaking at the Facts behind the Figures Programme on the Ghana Stock Exchange, Mr Paul Jacquaye, Board Chairman of Transol, said the company was looking critically at the opportunities that processing transactions for issuers locally would provide to its growth agenda.

He told brokers and journalists that future growth prospects were bright because of the envisaged expansion in both the telecommunication and banking sectors.

The company, therefore, needs to raise additional capital to roll out future programmes. However, the directors are yet to settle on a particular financing option.

"We are exploring various options of raising our capital. It could either be through a right issue, bonds or possibly through mergers and acquisitions," he said, adding, however, that management would seek shareholders' approval for any decision taken.

Last year saw a sharp dip in the company's net profit to 364,000 Ghana cedis, representing 102.9 per cent fall from 739,000 Ghana Cedis over the same period in 2006.

However, Mr Jacquaye was optimistic that the company could turn around the unimpressive financial performance by exploiting the expansion in the telecom and banking sectors to grow its business. This will be done through diluting reliance on revenue from MTN electronic vouchers while exploiting deals with other mobile network operators as well as forge strategic alliances with banks, Shell Oil Company and distributors of electronic vouchers for market penetration. Mr Jacquaye said the company would launch an internet voucher distribution system and deploy more Automated Teller Machines (ATMs) in partnership with other banks.

Transol in partnership with Ecobank operates the Ezi Cash ATMs. Mr Jacquaye said the company aimed to deploy and outsource more ATMs through partnership with other banks, including rural banks. ATMs will also be located in some major hotels as well as regional capitals to enable customers to have easy access to cash. He said the company was also poised to take advantage of the E-zwich initiative by the Ghana Interbank Payment and Settlement System to connect to the National Switch. Transol is the first company to introduce electronic voucher recharge and independent ATM. 8 April 08