The service involves three parties: the user, an MTN agent like a certain bank, Simba Telecom or distributors, and MTN which provides the platform for money transfer. MTN Uganda Mobile Money users are allowed to transfer amounts between UGX 5,000 (EUR 1.98) and UGX 1 million (EUR 398) to another person. This is because the anti-money laundering law under the Financial Institutions Act does not permit transfers or ATM withdraws of more than UGX 1 million.
In order to transfer money, a customer has to open a mobile account with MTN at any of the company’s dealers. Also, users who send money via the service are required to confirm the transaction using a PIN code which is given to them on registration. Recipients are also required to enter the same PIN code when withdrawing remittances from payment points. Isaac Nsereko, MTN’s chief marketing officer said subscribers can use over 600 transactions points across Uganda to send or withdraw money.
MTN’s entry into the money transfer market comes soon after Zain simultaneously launched its own mobile money transfer service called Zap in Kenya and Tanzania. Zap is also expected to be launched in Uganda in the near future. Over 1,400 Zain Tanzania customers have already registered for the Zap mobile payments service in just ten days after the service was launched by the operator.
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