ABSA UGANDA, MTN NEW POS MACHINE FEATURE SIMPLIFIES MOBILE MONEY TRANSACTIONS
By Joel Mugabi
Absa Bank Uganda and MTN Mobile Money Uganda Limited have introduced a mobile money payment (MTN MoMoPay) functionality on Absa Point of Sale (POS) machines/terminals intended to make transactions easier.
Launched July 08, the new feature will make it easier and more convenient for customers to pay for goods and services directly from their MTN Mobile Money accounts to the Absa POS machine. And there is even more good news: all MTN Uganda mobile money account holders can use these machines or terminals, regardless of whether they hold an account with Absa Bank.
“Wherever there is an Absa POS machine in a supermarket, shops or pharmacy among others, you can easily pay for goods and services directly using MTN MoMoPay at no extra cost,” noted Absa’s Managing Director Mumba Kalifungwa.
MD Kalifungwa was confident that, besides providing convenience to customers and supporting financial inclusion by accelerating access to formal financial services, “this service will help drive cashless transactions and the benefits that come with it.”
Data from telecommunications regulator Uganda Communications Commission (UCC) indicate that as of December 2020, the penetration of mobile connections in Uganda was equivalent to 67 per cent of the total population.
Financial inclusion indicators by Bank of Uganda indicate that whereas only 43 per cent of Uganda’s adult population own a bank account, 77 per cent have active mobile money accounts.
MTN Uganda was excited to join Absa in this effort that is clearly part of the journey to further adoption of digital services in the country.
“We are pleased to partner with Absa to offer this service which makes it easier for our customers to make payments using MTN MoMoPay on their phones. Cashless transactions are the future given the trends and increased mobile phone coverage in the country. 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 like MTN MoMo and MTN MoMoPay,” said Stephen Mutana, the General Manager MTN Mobile Money.
“This is yet another digital innovation from Absa as we accelerate our ambition to become a digitally led bank. I urge our customers who are in possession of these machines to provide this payment option to their customers. It not only offers convenience but also has a direct benefit to businesses that do not need to hold onto large amounts of cash waiting to be banked at the end of the day, and in turn mitigating security risks,” Absa MD Kalifungwa added.
Statistics from the Uganda Communications Commission indicate that there was 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), 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. (For comments on this story, call, text or whatsapp us on 0705579994, 0779411734, 0200900416 or email us at email@example.com).