The Bank of Uganda issues license to MTN Mobile Money Uganda Limited and Airtel Mobile Commerce Uganda Limited under the National Payment Systems Act to ensure safety and efficiency in operations and standards for the delivery of payment services.
Also read: The unique opportunities for mobile money agents in Uganda
Increased efficiency expected as bank of Uganda issues license to MTN mobile money and Airtel
The Bank of Uganda issues license to MTN Mobile Money and Airtel Mobile Commerce Uganda Limited according to a press release from the Central Bank. The Governor Bank of Uganda, Mr Emmanuel Tumusiime Mutebile said, “Following the enactment of National Payment System (NPS) Act 2020, on 4 September 2020 and the gazetting of the NPS Implementing Regulations on 5th March 2020 Bank of Uganda has commenced licensing of Payment System Operators, Payment Service Providers and Issuer of Payment Instruments.”
The Central Bank’s powers as provided under the Act focus on the oversight and regulation of payment systems. In implementing its mandate, Section 5 of the National Payment Systems Act empowers Bank of Uganda to, among other things; monitor cross border payments, provide settlement services to payment systems and co-ordinate payment systems activities with relevant stakeholders.
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Since 2009, when Mobile Money services were launched in Uganda through a partnership between Stanbic Bank Uganda and MTN Uganda, the digital financial services market has largely been dominated by mobile money service providers such as MTN Uganda Limited.
The network of mobile money services is comprised of mobile network operators, commercial banks, non-bank financial institutions, Bank of Uganda, third-party operators and technology providers. The services are offered by mobile network operators in partnership with supervised financial institutions.
By granting this license, it shows the government’s commitment towards boosting the mobile money eco system and continued support towards growth of Telecom companies.
As bank of Uganda issues license to MTN mobile money and Airtel mobile commerce, M/s Wave Transfer Limited also received the Bank of Uganda’s approval to operate under the Regulatory Sandbox Framework, pursuant to Section 16 of the National Payment Systems Act, 2020 and Regulation 5 of the National Payment Systems (Sandbox) Regulations, 2021.
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