Leading telco, MTN Uganda has connected to 25,000 merchants like supermarkets, restaurants, hardware shops, fuel stations and salons among others to roll out their cashless payments solution, MoMoPay.
The service under Mobile Money allows customers to pay for goods and services at no extra costs and customers, they will be making payments like sending withdrawal fees.
“This is reducing cash transactions by taking out withdrawal charges, which makes it quite costly. It is the better way to pay,” explains Christopher Ssali, Senior Manager Mobile Financial Services Products at MTN Uganda.
MTN Mobile Money, which currently has over 8.8 million customers, has transacted over Ugx30trillion since inception in 2008. What still exists are the cash transactions that put customer and merchants at risk, when moving the money.
“The risks of carrying money by both customer and merchant are high, unlike MoMoPay. The merchant will receive payment directly into their mobile money account and they will be able to use it for several other features like making salary payments, transferring it to their bank account, purchase airtime for customers – and earn a commission, among others,” said Elsa Muzzolini, the General Manager Mobile Financial Services.
Merchants will be charged 1% on each transaction for an individual and 2% on a business merchant payment.
A cashless economy is one where Business is done without physical cash, except through digital.
In such an economy, purchases are made by the use of credit cards, cheques or direct transfer from one account to another.
