MTN Uganda has launched a virtual card for its mobile money customers, allowing them to make online purchases without needing a physical bank card.
The “Virtual Card by MoMo”, launched on Thursday, is a partnership with Mastercard, Diamond Trust Bank and Network International which aims at boosting e-commerce growth and financial inclusion in the country.
Users can create the virtual card by dialling *165*70# on their phones. It is then linked to their mobile money wallet, allowing them to make card-based payments on any online platform that accepts Mastercard.
MTN says the card can be used for a range of transactions, from paying school fees and advertising on social media, to subscribing to streaming services and booking travel.
“The Virtual Card by MoMo is a major milestone in our journey towards MTN’s Ambition 2025,” said Jemima Kariuki Njuguna, Chief Product Officer at MTN MoMo. “By offering a secure and convenient way to access online services, we enable our customers to engage more actively in the digital economy.”
Uganda has seen rapid growth in mobile money use. According to the Bank of Uganda, transactions reached 191 trillion Ugandan shillings ($50bn; £40bn) in the 12 months to June 2023, a 23% increase on the previous year.
Mastercard’s Muhammad Nana said the launch “marks a critical milestone in enabling broader access to the digital economy”.
The virtual card is designed to cater to a range of users, including students, small business owners, entertainment enthusiasts, online shoppers and travellers.
MTN says security is a “top priority”, with transactions protected by “the highest industry standards”. Users can also control their spending by topping up only the amount needed for each transaction.
The company says the card will also offer access to exclusive deals and discounts.
