Earlier this month, MTN Uganda cut mobile money withdraw charges by 5.8% —with the new rates coupled with Senkyu Points that one earns when withdrawing money. Customers can use the loyalty points to redeem data, voice call minutes, or pay for goods and services using MoMo pay.
This article is a brief interview with Stephen Mutana, the General Manager Mobile Financial Services at MTN Uganda, as he explains more to this.
At a time when many businesses are increasing prices, what prompted MTN to reduce their Mobile Money Withdrawal rates?
The decision to reduce our mobile money withdrawal prices was based on our market and customer feedback. We know that many people, especially those without bank accounts rely on our mobile money services to do their business or even manage their day to day needs and as such, this reduction of our mobile money withdrawal fees will encourage more use of the MTN mobile money services across different groups of people in Uganda. The notion ties in well with the financial inclusion agenda of Mobile money, which is to promote a cashless economy and to digitize the financial sector in Uganda.
By what percentage was the cut?
The new rates are ideally 5.8% less than the previous rates and you also get Senkyu Points every time you make a withdrawal. These new rates went into effect on May 1st 2021. I also want you to know that this is not the first time we are reducing our MTN mobile money withdrawal prices. Last year in November, we reduced the withdrawal rates by 7.2%.
You mentioned Senkyu Points offered on withdrawals. How does this work?
We did not stop at reducing our mobile money withdrawal fees alone, we also decided to give our customers who are signed up to loyalty program, MTN Senkyu with points every time they make a withdrawal. If you withdraw MTN Mobile Money, you automatically get MTN Senkyu points. So you’re gaining twice; the reduced withdrawal rate and the MTN Senkyu points that you can use to get airtime, data, SMS or even pay for goods using MTN MoMoPay.
However, MTN Senkyu points are not only gained from MTN mobile money withdrawals, but you can get the points every time you use MTN Services. So you get Senkyu points when you deposit money, send money or make a payment through on MTN mobile money where you are charged.
How do you join the Senkyu program?
Any MTN customers can join the loyalty program. They can dial *141# or use MyMTN app to join. So, the more MTN services they uses and the longer you stay on the MTN network, the more points they receive.
You mentioned MoMoPay. What is MoMo pay?
MoMopay is a cashless payment solution designed for our customers to pay for goods and services free of charge using MTN mobile money. It is a simple and secure payment method that is now available to our customers at almost any payment point where they can choose to pay for their goods and services using mobile money.
It is advantageous in a way that it helps reduce the risks of people carrying around physical cash which might be stolen or attract criminals to you. Therefore, we encourage all our customers to keep some ka money on their mobile money so that they can make payments the safe and easy way using MoMoPay.
How do I pay using MoMoPay?
To use MTN MoMoPay, dial *165*3# then enter the merchant code at the place you want to pay, followed by the amount to be paid and lastly you will confirm this transaction with your mobile money PIN. You can also do the same when you use MyMTN app; simply open the app and select MoMoPay then follow the prompts.
What promo offers do you currently have on the MoMo Pay service?
We are currently giving out a discount of up to UGX5,000 for a fuel purchase you pay for using MoMoPay at any petrol station. This discount is on your first MoMoPay fuel payment of the day.
How do I know which petrol stations accept MoMo Pay?
There is a MoMoPay sticker on or near the fuel pump showing the MoMoPay merchant code to which you use while making payments.