Home News Uganda MTN Mobile Money reaches $90m monthly

MTN Mobile Money reaches $90m monthly

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KAMPALA, UGANDA - Mobile money transactions by Uganda's largest telecommunications operator MTN have hit $90 million monthly a senior official in the company said last week.
Mr. Anthony Katamba, MTN Uganda company secretary told a global network of mobile industry professionals, visionaries, developers and entrepreneurs commonly known as Mobile Monday in Uganda that after the two years of mobile money, an estimated $90m is transacted every month.
This was during a discussion about financial inclusion through mobile money: the role of banks, mobile operators and developers at the Nyoyi gardens in Kololo a Kampala suburb.
Mobile money transfer is the transfer of money to a receiver in which the funds are deposited into a mobile or virtual wallet. It's still a new innovation in Uganda, with three (MTN, Uganda Telecom and Bharti Airtel) of the nine registered telecom companies in Uganda offering the service.
"As you're aware, 62% of Ugandans are unbanked with only 600ATMs serving the rest. MTN mobile money, 1.6 million people are registered users with over $90 million transacted every month. This is a good initiative which has to be supported by every player," said Katamba.
He cited the lack of the National Identity Card as a major hindrance to the registration of mobile money customers; otherwise the customer base would have surpassed 3 million by now.
Mr. Mark Pickens the CGAP executive said the mobile money initiative is bridging the gap where commercial banks and other financial institutions have failed to exploit worldwide.
He noted that mobile money transactions are 38% cheaper and quicker than the transactions carried out by traditional banks.
"Even about 51% of the people find it cheaper to do it with a mobile money agent," he stressed.
Pickens indicated that with a few years to come, revenues generated from the mobile money service will surpass that generated by the Short Messaging Service.
Mr. Gerald Begumisa, the managing director Yo Uganda a software developing company said that they have developed a soft ware that enables businesses to conveniently receive payments from their customers via mobile money. He said it can accommodate large numbers of inbound and out bound payments.
He added that the software can secure web-based access to accounts, has multiple security features as sub accounts with limited access, withdrawal limits and Email authorization.
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