MTN strikes deal with NSSF, backs formulation of mobile money law
Kampala, Uganda | JULIUS BUSINGE | The National Social Security Fund (NSSF) has added the mobile money platform as an option for Ugandans to make their contributions.
“We are making saving easier for Ugandans and more convenient on their phones,” said NSSF head Richard Byarugaba as he launched the service with MTN on Tuesday.
The platform is expected to attract more Ugandans to join the voluntary saving scheme that is targeting those employed in the informal sector.
Byarugaba revealed that NSSF recently launched a voluntary plan to unable Ugandans to save and managed to register 4,370 new members and collected up to sh4billion.
“Members on the voluntary plan and small medium sized entities will conveniently make payments using MTN Mobile Money,” he said as he announced the partnership together with MTN head Wim Vanhelleputte.
He assured of the security of the mobile money transanctions, and said NSSF is supporting regulation of the mobile money business. He added that the initiative will increase saving level (currently at 10%) and boost financial inclusion and economic development.
MTN backs formulation of mobile money law
Uganda’s largest telecom company, MTN supports a process of formulating independent law governing users of mobile money business.
“We welcome the law,” Christopher Ssali, the head of technical team of mobile money at MTN said.
Ssali was on Sept. 12 speaking to The Independent on the sidelines of MTN’s partnership event with NSSF where the latter’s members would make payments using MTN mobile money service.
“As we speak Bank of Uganda has already engaged on a policy; the policy was taken to Parliament to be enacted into an act of Parliament, after it is an act of Parliament it will be into law,” Ssali said. He added: “As it is now we are in consultations with different bodies…BoU, Parliament, and Judiciary.”
When asked whether MTN thinks that current mobile money guidelines gives confidence to their customers to use the service, Ssali said: “Guidelines are guidelines and they apply in the current situation; so many things have changed; the market has grown, we have new products like loans and savings products…do guidelines cover that (new products), I don’t know; we need to make sure that the guidelines are updated as regularly as possible.”
Supporters of the mobile money law say it is important for protecting interests of all parties using the service that currently serves over 18 million people with transaction volumes recorded at Shs 44 trillion at the end of 2016. MTN was the pioneer of mobile money service in Uganda eight years ago.