The service operated by EzeeMoney Limited will work in collaboration with Centenary Bank-which will provide an escrow account to primarily safeguard the electronic transfers.
EzeeMoney was launched last week in Kampala as a mobile financial services provider for both individuals and businesses.
Mr Emmanuel Mutebile, the Governor Bank of Uganda, said in his speech that the entry of the new product will further cement the growth in money transfer services that has been witnessed in the last five years.
“The product will help build a modern and inclusive financial services industry in Uganda,” he said.
A recent FinScope survey conducted in 2009 indicated that about 70 per cent of Ugandans have no access to financial services.
The total value of mobile banking transactions in the first six months of 2013 amounted to Shs8.3 trillion, an increase of 69 per cent over the value in the same period in 2012.