Mobile Money penetration in Uganda is high
Effective June15, 2017, MTN Uganda revised its Mobile Money sending and withdrawal fees. A critical analysis of the new rates shows a general increment.
For example, the revised tariffs available on MTN Uganda website indicates that sending between Shs250, 001 to Shs500, 000 to MTN registered users will increase to Shs1, 600 up from Shs1, 400 while withdrawing the same amount from an agent has been increased to Shs7,000, up from Shs5,775.
The statement also reveals that sending between 60,001-125,000 to MTN users is now at Shs1, 600, up from the Shs1, 400, while withdrawing the same amount will remain unchanged at Shs1, 925.
Sending between 125,001 to 250,000 has also been increase to Shs1, 600, up from Shs1, 400, while withdrawing the same from an agent will remain unchanged at Shs3, 575.
Additionally, while sending between Shs500, 001 to Shs1, 000, 000 has been reduced to Shs2, 000, up from Shs2, 200, withdrawal charges have been increased to Shs12, 500, up from Shs10, 450.
However, sending between Shs1, 000,001 to Shs2, 000,000 to MTN registered user has been reduced to Shs2, 000, down from Shs2, 200, while withdrawing the same from an agent has remained unchanged at Shs19, 800.
Additionally, sending between Shs2, 000,001 to Shs4, 000,000 has been reduced to Shs2, 000, up from Shs2, 200, while withdrawing the same has remained unchanged at Shs35, 200.
“Do not pay any Mobile Money Agent after transaction. Fees are deducted directly from your phone,” the telecom giant says in a statement.
New Rates Explained
Asked why MTN Uganda increased Mobile Money rates, Justina Ntabgoba, the Senior Manager- Corporate Affairs at MTN Uganda said that they wanted to increase the accessibility of the service by decreasing the cost to cash-out for the transactions that are the most common like the tier of Shs5001 – 15,000.
“To balance this price decrease we have increased some of the tariffs on higher tiers of cash-out,” Ntabgoba said in an exclusive interview with Business Focus.
“The aim of this is to balance out the costs per transaction to reduce the amount for the lower tier amounts which cover most of our customer base and increase the amounts for the higher tier amounts that are used by a less number of people. Likewise, for Pier to Pier, we have decreased the rates up to 100% in all tiers that are the most used by the clients,” she added.
Ntabgoba explained that MTN Uganda is committed in helping Ugandan society to move to a cash-less economy.
“To reach this objective, we will regularly decrease the cost of the transactions performed from your electronic wallet. This tariff adjustment is going into this direction, we have decreased the costs according to the current use of the service,” she said, adding:
“We are also committed to continue with investments on the Mobile Money platform to increase the features and services available to our customers.”
Responding to the impact agency banking will have on Mobile money products like loans and savings, Ntabgoba said they “are working as partners with banks in this effort to move to a cash-less society.”
“Mobile Money is a complementary service to other banks offers and is not competing with the core financial offering that will be available in agency banking network,” she added.
She explained that they are committed to deliver the finest digital innovation to all our clients in the next coming years and to improve customer service through more e-care options.
That is a lie when u decrease 200 maximum and you increase 2100 minimum and you say that your trying to balance please stop fooling people. Is there any amount that can be sent and remain on the phone it’s an obvious that it will be withdrawn from the phone, then who encounter lose still the ordinary people and who gains still u and the worst of it all is u even decreased the commission on the agents what a shame on you people please stop fooling Ugandans