The Bank of Uganda has issued licenses to two telecom service providers MTN Mobile Money Uganda Limited and Airtel Mobile Commerce Uganda Limited to carry out cash and electronic transactions.
According to the Governor of Bank of Uganda, Emmanuel Tumusiiime-Mutebile, the licensing to the two telecom giants follows 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 National Payment System Department in the Bank of Uganda oversees the national payment system with the objective of ensuring overall effectiveness and integrity of payment systems in the country.
The use of electronic payment systems in Uganda has increased dramatically over the years, enabling more people to gain access to financial services. The ability to make payments easily and safely is important in ensuring the smooth and timely flow of goods and services throughout the economy.
“In addition, M/s Wave Transfer limited 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 Payments Systems Sandbox Regulations, 2021,” Mutebile said.
He said the Bank of Uganda will continue to support the development of a vibrant and resilient payment ecosystem that promotes economic growth.