Mobile money revolution changing Uganda’s financial sector

Zap subscribers pay between Shs250 and Shs5,000 to send and receive finances of between Shs1-Shs1 million. None-registered users pay between Shs200 and Shs2, 000 for sending and Shs1, 000 and Shs5, 000 for withdrawals. MTN’s registered users pay Shs800 to send any amount of money irrespective to any part of the country and between Shs700 and Shs9, 000 to receive cash depending on the amount.

Non-registered users and those using other networks pay upon receiving a withdrawing charge, which varies between Shs1,000 and Shs19, 000. “The impact of mobile money services may be minimal now but in a few years, a huge impact will be seen,” Mr Semanda said. Through the service, Zain has created jobs to over 4,500 Zap agents across the country.

Users are also able to keep track and manage their finances through handsets for instance checking account balances, changing passwords, nick-names and getting bank information and reports.With Zap, one is also able to purchase airtime at no cost.

To use any of the service providers’ facility, one needs to register his personal details with respective service provider. The Sim card is then automatically registered upon providing the required details. Registered users get codes to enable them access the service menu, from which they choose the type of transaction they want to carry out on the mobile phones. Upon transacting, the intended recipient receives a text message notifying them of the amount of money received within or less than five minutes.

A secret pin code is also sent to the recipient to enable them retrieve cash from the nearest service provider’s service point. “All transactions are carried out using a password to ensure that customers’ money is safe and secure,” Mr Semanda adds.

The service involves the use of a bank and as such many telecoms have partnered with different international and local banks to do business. According to information available, Warid Telecom is also expected to enter the market after partnering with Obopay.

Currently MTN has about I million Mobile Money customers moving about $22 million per month. The platform was first introduced by Safaricom with the M-PESA product in Kenya two years ago and it has over 11 million registered users. One can use M-PESA to purchase air tickets in Kenya.