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New licensing regime will not affect mobile money - telecoms
The Bank of Uganda has issued a license to Airtel Mobile Commerce Uganda Limited and MTN Mobile Money Uganda Limited to conduct various payments through the telecommunication based channels
What you need to know:
- Speaking in an interview yesterday, Mr Stephen Mutana, the MTN head of mobile financial services, said the split of mobile money from telecom operations will not affect agent and customer operations in anyway.
MTN has said the new mobile money licensing regime will only see changes within the telecom that will have no impact on how agents and customers transact.
Speaking in an interview yesterday, Mr Stephen Mutana, the MTN head of mobile financial services, said the split of mobile money from telecom operations will not affect agent and customer operations in anyway.
“As an agent, there will not be any changes. Your business will continue as is. There is no need to fear,” he said.
This followed a notice by Bank of Uganda last weekend in which the Central Bank said it had issued licenses to MTN and Airtel to operate mobile money subsidiary companies.
MTN will operate the mobile money segment under a new subsidiary MTN Mobile Money Uganda while Airtel will trade under Airtel Mobile Commerce Uganda.
Mr Mutana said MTN had secured two licences for payment systems operator, which allows the telecom to operate mobile money technology while the payment service provider license allows it to provide mobile money services to customers.
The split follows the enactment of the National Payments Systems Act 2020 which places mobile money regulation under Bank of Uganda.
Ms Irene Kaggwa, the Uganda Communications Commission acting executive director, said prior to enactment of the Act, UCC had been having collaborative regulation with the Central Bank to oversee mobile money operations.
Mr Denis Kakonge, the Airtel legal and regulatory director, said they were in the process of transitioning with the new company expected to take effect immediately.
