Cashless payment showing marked growth, says BoU
Last year Bank of Uganda (BoU) said it was working on a strategic plan to reduce the use of paper money payments. FILE PHOTO
What you need to know:
- Mr Julius Mukunda, the CSBAG executive director, noted that the proposed tax on mobile money transactions, is a regressive proposal because it will stifle efforts to introduce digital transactions which ensure accountability, transparency and traceability of transactions.
Kampala. Bank of Uganda has said it is beginning to see improvements in the acceptability of Visa card payment, especially in supermarkets, hotels, leisure centres and eateries.
In an email exchange yesterday, Dr Adam Mugume, the Bank of Uganda director for research, said the improvements could have been driven by incentives offered by the banks.
Mr Victor Ndlovu, the Visa Cemea country director, yesterday told Daily Monitor that Uganda transacts more than $1b (Shs3.75 trillion) in Visa payments.
Out of the 24 commercial banks, 17 are already signed up to Visa and volumes transacted through the system have been going up.
He noted that Visa payments had grown by 40 per cent in 2017.
Uganda is highly dependent on cash payments. However, the advent of mobile money and debit cards has been improving the move towards achieving cashless payments.
Last year Bank of Uganda (BoU) said it was working on a strategic plan to reduce the use of paper money payments.
Mr Benedict Ssekabira, the then BoU executive director for commercial banking, said the 2017-2022 strategic plan would cut on the use of paper notes and cheques, among others for payment.
On Monday Civil Society Budget Advocacy Group (CSBAG) suggested that government should support alternative payment systems such as mobile money instead of burdening users with taxes.
Government has proposed a 1 per cent tax on every mobile money transaction, which experts say will heavily impact one of Uganda’s major payment and money transfer platforms.
Mr Julius Mukunda, the CSBAG executive director, noted that the proposed tax on mobile money transactions, is a regressive proposal because it will stifle efforts to introduce digital transactions which ensure accountability, transparency and traceability of transactions.
Mode of payment
Conducted through: Many of the payments are conducted through Visa debit cards, mobile money and online money transfers, which according to BoU has seen cashless payments improves.
