Effective July 8th, 2021, MTN Uganda mobile money subscribers can now make payments on ABSA point of Sale (POS) machines, regardless of whether they have an account with ABSA.
Mr. Mumba Kalifungwa the Managing Director at ABSA Bank Uganda, noted that the new development will make it more convenient for MTN Uganda mobile money subscribers to pay for goods and services directly from their MTN mobile money wallets to the ABSA POS machine.
“Wherever there is an ABSA POS machine, be it in a supermarket, shops, or pharmacy, MTN Uganda mobile money subscribers can easily pay for goods and services directly using MTN MoMoPay at no extra cost. The payment system will provide convenience to customers as well as support financial inclusion by accelerating access to formal financial services,” Kalifungwa explained.
Kalifungwa urged their customers who are in possession of ABSA POS machines to provide this payment option to their customers. “It not only offers convenience but drives cashless transactions and the benefits that come with it,” he said.
Kalifungwa also noted that the development is another digital innovation from ABSA as they accelerate their ambition to become a digitally-led bank.
Mr. Stephen Mutana, the General Manager at MTN Uganda Mobile Money, during the announcement of the partnership, said the telco was pleased to partner with ABSA to offer this service which makes it easier for their customers to make payments using MTN MoMoPay. Also emphasizing the drive to a cashless economy.
“Cashless transactions are the future given the trends and increased mobile phone coverage in Uganda. Factors such as a youthful tech-savvy population coupled with MTN Mobile Money’s digitalization agenda will continue to propel the adoption of digital services,” said Mutana.
Statistics from the Uganda Communications Commission (UCC) showed a growth in the number of mobile money accepting businesses to 32,000 in 2020 from 26,000 in September 2020. Under the national financial inclusion strategy (2017/22), the Central Bank of Uganda has set out to achieve a cashless economy by 2022 which involves building digital infrastructure, implementing the strategy for financial literacy (2019/24), and making payment services affordable.
Kalifungwa noted that the new development will support financial inclusion by accelerating access to formal financial services.
According to data from UCC, as of December 2020, the penetration of mobile connections in Uganda was equivalent to 67% of the total population. Financial inclusion indicators by the Central Bank of Uganda indicate that whereas only 43% of Uganda’s adult population own a bank account, 77% have active mobile money accounts.
