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Payment process for online shoppers using Mobile Money

Cash on delivery is the main payment method that the developing local online merchants in Uganda and many parts of Africa deal with. However, Mobile Money is taking the big run in many countries.

As Internet penetration grows, shoppers are starting to see the benefits of shopping online. Surveys cited in the Africa B2C E-Commerce Market 2016 report show that convenience is one of the enticements for buying online, for instance, in Nigeria and Kenya. But the fact remains that few Internet users in Africa have made an online purchase.

The report pointed to two main barriers to wider acceptance of B2C E-Commerce in Africa: delivery infrastructure and secure payment methods. This is where Mobile Money comes in. It is secure since it is being provided directly by the mobile operator and not 3rd party platforms.

In Uganda, a few e-commerce merchants have integrated online Mobile Money payments onto their platforms; Jumia, Kaymu, HelloFood and new comers – Hi2Shop and KiliMall. Although I speculate this trend will grow this year.

Africa's delivery infrastructure and a secure payment method are the biggest hindrance in Africa. Image Credit: BBC
Africa’s delivery infrastructure and a secure payment method are the biggest hindrance. Image Credit: BBC

Mobile operators have already tasted the potential online merchant payment presents in terms of increasing mobile money transaction volumes.

The process of payment for online shoppers via mobile money may depend on the mobile operator in use;

  1. After you’ve chosen the items you want to buy from your online store, select Mobile Money as your Payment Option on ‘checkout’ and select your Mobile Money operator.

You will be asked for your registered Mobile Money number. A merchant Reference Number and a Business Code are provided (by the online merchant) which you’ll input via approval.


  1. You’ll receive a notification on your phone prompting you to confirm payment by providing the Reference Number, Business Code and Mobile Money PIN


  1. Depending on the mobile operator you will be asked to initiate mobile money transaction by dialing its special code eg for MTN it is *165# and entering the same.
  2. On successful completion of the transaction, an SMS notification with a unique Transaction ID will be sent to your phone.
  3. Payment is complete!


Jeddy Genrwot

Jeddy "The Jedi" is a budding professional with extensive conceptual knowledge in Web Development technologies and Computer Systems. "In like" with the Internet Startup space and cloud computing. A passionate gamer and social media enthusiast.
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