Mobile Money Services in Uganda

Over the past 15 years, mobile money has revolutionized financial inclusion in Uganda. What began as a simple method for sending money via phone has evolved into a comprehensive ecosystem enabling millions of Ugandans to save, borrow, invest, insure, and pay digitally — with or without a traditional bank account. With widespread access, growing product innovations, and partnerships between telecoms and financial institutions, mobile money services are central to Uganda’s digital finance future.

This complete guide explores the major players, products, integration with banks, regulations, and how mobile money is reshaping how Ugandans manage their finances.

1. What Is Mobile Money?

Mobile money refers to electronic financial services that allow users to store, send, receive, and manage money via a mobile phone. These services are typically offered by telecom operators (e.g. MTN, Airtel) and are accessible through USSD codes, apps, or agent networks.

Unlike traditional bank accounts, mobile money accounts don’t require paperwork or a fixed address to open — making them ideal for the unbanked or underbanked population.

2. Key Players in Uganda’s Mobile Money Landscape

As of 2025, Uganda’s mobile money sector is dominated by the following providers:

2.1. MTN MoMo (MTN Uganda)

Uganda’s largest mobile money provider
Over 20 million users
Offers P2P transfers, bill payments, savings, loans, merchant payments, school fees, and group saving features
Integrates with most major banks and SACCOs

USSD Code: *165# | MTN MoMo App: Available on iOS & Android

2.2. Airtel Money (Airtel Uganda)

Second-largest provider
Wide network of agents nationwide
Offers cash deposits/withdrawals, bill pay, loans (via Airtel Wewole), and Airtel Pay for merchants
Compatible with bank accounts and other digital wallets

USSD Code: *185# | Airtel Money App: Available on iOS & Android

2.3. Africell Money (now closed in Uganda)

Africell exited the market in 2021, consolidating users to MTN and Airtel

2.4. Mobile Financial Service Aggregators

Companies like Pegasus, Payway, Beyonic, and Interswitch enable businesses to integrate mobile payments into digital platforms
Used for school fees, utility bills, NGO transfers, and payroll

3. What Services Can You Access Through Mobile Money?

Mobile money has evolved far beyond simple cash transfers. Here’s what you can do:

Service Type	Description
P2P Transfers	Send/receive money instantly to other users across networks
Airtime/Data Purchase	Buy airtime for self or others, including bundles
Bill Payments	Pay utilities (Yaka, NWSC), school fees, TV subscriptions (DSTV, StarTimes)
Bank Transfers	Send money to and from bank accounts
Group Savings	Rotate and save in village groups (Mokash, Airtel Weza, Chama, etc.)
Microloans	Get instant loans (e.g. MoKash, Wewole) based on usage and credit profile
Merchant Payments	Scan QR codes or use USSD to pay at shops and supermarkets
Savings & Investments	Save and earn interest (MoKash) or invest in T-Bills or fixed deposits
Insurance	Pay premiums or access health/micro-insurance services
International Remittances	Receive funds from abroad via partners like WorldRemit or Sendwave

4. How Mobile Money Works (Step-by-Step)

Here’s how a typical mobile money transaction works:

Register for a mobile money account with your national ID at any telecom agent
Receive a mobile wallet number linked to your phone SIM card
Deposit cash at an agent (cash-in), or receive funds from another user
Use the USSD menu or app to send, pay, save, or borrow
Withdraw cash (cash-out) at agents or ATMs, or transfer to your bank

Transactions are confirmed via SMS, and your balance is updated in real-time.

5. Mobile Money to Bank Integration

One of the most important developments has been the integration between mobile money and commercial banks:

Send or receive money between mobile wallet and bank account (push/pull)
Receive loan disbursements or salary via mobile
Pay bank loans or top up savings via USSD
Commonly integrated banks: Stanbic, Centenary, Equity, Absa, DFCU, PostBank, Housing Finance, and more

This integration has expanded access to formal banking services — especially for rural users and SMEs.

6. Mobile Lending – Borrowing with Your Phone

Mobile lending is one of the fastest-growing digital finance segments. Users can borrow small loans instantly, with repayment deducted from their mobile wallet.

Popular services:

MoKash (MTN) – Loans + savings with interest (UGX 3,000 – 1M)
Airtel Wewole – Loans up to UGX 1M for qualified users
MTN MoSente – Business loan feature for MSMEs
Third-party apps: Numida, Jumo, Ensibuuko (serve small businesses and groups)

Loan amounts and interest rates vary depending on usage history, repayment behavior, and mobile activity.

7. Fees and Charges

Mobile money is not free, though charges have reduced in recent years. Fees include:

Withdrawal fees (based on amount and location – agent vs ATM)
Sending fees (P2P, especially across networks)
Bank transfer fees (UGX 500–3,000 per transaction)
Loan fees (interest, setup, or late penalties)

Most providers publish a fee schedule via USSD (1654# for MTN or 1859# for Airtel).

8. Safety and Regulation

Mobile money services in Uganda are regulated by the Bank of Uganda under the National Payments Systems Act (2020). This ensures:

Funds are held in trust accounts with commercial banks
User data is protected under data privacy laws
Services are monitored for fraud, money laundering, and compliance
Agents are licensed and trained

To stay safe:

Never share your PIN with anyone
Report suspicious messages or transactions immediately
Use official apps and codes — avoid third-party services or scammers
Avoid over-borrowing from digital lenders

9. Mobile Money and Financial Inclusion

The impact of mobile money on Uganda’s economy has been profound:

Over 70% of Ugandans now use mobile money
Rural populations have gained access to savings and credit for the first time
Women and youth have embraced mobile money for business and personal finance
Government programs use mobile wallets to disburse funds (e.g. SAGE payments)

It has reduced reliance on cash, increased tax revenue (via mobile collections), and spurred innovation in health, agriculture, and education sectors.

10. Challenges and Opportunities

Despite its success, mobile money in Uganda faces challenges:

Fraud and SIM swap scams
Limited digital literacy among older or rural users
Network outages affecting reliability
High transaction fees for small-value users
Regulatory hurdles around taxation and privacy

Opportunities for growth include:

Expanding merchant acceptance (digital receipts, QR codes)
Linking to credit scoring and insurance services
Rural agent support and network expansion
Interoperability between networks and banks
Diaspora integrations and cross-border mobile payments

11. Future of Mobile Money in Uganda

The future of mobile money is bright. New technologies like USSD-to-smartphone transitions, biometric verification, AI-powered credit scoring, and blockchain integration are beginning to reshape Uganda’s digital finance landscape.

The emergence of fintech startups, increased government support, and greater interoperability between providers means that mobile money will continue to drive financial inclusion, innovation, and economic empowerment across Uganda.

Conclusion

Mobile money has transformed how Ugandans save, send, borrow, and do business. From city markets to rural villages, mobile financial services are bridging gaps that banks could not. Whether you’re paying school fees, starting a side hustle, or managing your finances, mobile money puts financial power in the palm of your hand.

As mobile technology continues to evolve, Uganda stands as one of Africa’s leading examples of how digital finance can build a more inclusive and resilient economy.