After 33 years as a banker he quit to form his own business

During one of the training at World Bank and Wharton University of Pennsylvania US in 2007, Grace Ndyareeba, was introduced to the idea of mobile money.
But his ignorance made him to look at the Mexican tutor in amusement, wondering how someone would transact using a mobile phone.

To convince him, the tutor demonstrated how it works by paying for a utility bill using his mobile phone. The transaction was relayed through a message.
“I looked at the ease and the way he could send the money using his mobile phone. In 2008 when I came back, I found MTN doing me2u to transfer airtime and it was around this time that my mind started being tickled,” he recollects.

While at Bank of Uganda “I remember around the same time some bank applied to the central bank introduce mobile money payment using the MTN Uganda platform. And through my department, which was given the mandate to conduct a visibility study I got the opportunity to research more on what I had seen in Mexico,” Ndyareeba says.
However, “when I left Bank of Uganda, the easiest way was to continue using finance expertise I had acquired.”
Ndyareeba worked with the central bank for more than 33 years as an examiner of commercial banks, leaving at the rank of deputy director.

How to run an e-payment platform
According to Ndyareeba, in order for one to run an e-payment system (mobile money), one must partner with a financial institution, regulated by the central bank.
You present the central bank with an intention of starting an e-payment platform and when it approved you put up a system that operates in compliance with the Anti- Money laundering Act, the Financial Intelligence Authority guidelines and the Bank of Uganda mobile money transaction guidelines.
“As MicroPay we partnered with Centenary Bank from where we operate an escrow account, ensuring that people money is safe,” Ndyareeba says.

Investment
“Mobile money is capital intensive. It is not easy. The comfort you see on phone is because the office works 24 hours. I spent Shs800m on hardware. Software was more expensive. If you are buying servers, you must have extra servers to back them up for business continuity management,” he says.
The business model of MicroPay is on a three-tier system including engagement of super agents who supply float to agents, then agents meet subscribers / customers at different outlets.

“MicroPay registers and works across all networks. The platform is independent of any telecommunications network; instead it is an internet based platform which means any customer regardless of their mobile phone provider is able to use MicroPay mobile money services anywhere in the world. What is unique is that we deal with people with smart phones because we are looking at the future. Technology is changing and smart phones are replacing the older, traditional phones,” Ndyareeba explains.

Registering the MicroPay platform
To register, one has to provide a recognised Identity Card and formal photograph. After registering a MicroPay app is installed on the customer’s phone and it is a ready to operate application.
Conventionally, you will visit any MicroPay agent, provide a valid identification, fill in a registration form, accept terms and conditions and then download a MicroPay Mobile Money form. However, customers who are not registered on MicroPay can transact with registered clients.

Some of the unique features on the platform is it provide a statement of up to 40 transactions. The system stores information like Umeme accounts number, pay TV, water and DStv numbers, among others.
“We want to maximise usage of smartphones by providing convenience to customers. We currently have agents in Kampala, Mukono, Mbarara and Lira. Our charges are similar to those of our partners,” Ndyareeba says, adding “we are strengthening our network and we hall soon launch a media campaign in September.
So far, Ndyareeba says the company has registered an increase in customer numbers, given the comfort of conducting transactions on a mobile phone.

Entering private sector

And in 2010, together with other Ndyareeba started MicroPay, an application that allows customers to securely, simply and conveniently make e-payments/ transactions.
The service allows subscribers have access their e-wallet accounts, transfer funds, receive money, pay for utilities, services, school fees, check balance and view statements. Ndyareeba is a director and the MicroPay managing director.

He holds a Bachelor’s degree in Commerce from Makerere University Kampala (MUK). He also holds another degree from the University of Colorado and Williams College-Centre for Development Economics in US, Massachusetts where he attained a post graduate degree of science in development Economics.
He has expansive knowledge of financial systems having trained with a number of reserve banks including Federal Reserve Bank, Washington, Reserve Bank of India, Reserve Bank of South Africa and Deutsche Bundesbank, Germany among others.

He is highly trained in anti-money laundering systems, considering he has been trained at three of the oldest and prestigious financial intelligence facilities including Financial Crimes Enforcement Network, USA, Financial Transactions Reports Analysis Centre, Canada and Australian Transaction Reports Centre, Australia.
“When I left Bank of Uganda, I was offered a consultancy to formulate an anti-money laundering bill which is now an act,” he adds.