MTN Introduces ‘MomoPay’ To Enable Cashless Payments
MTN Uganda, in a bid to further Uganda’s cashless economy has today introduced to customers a payments solution, MoMoPay. MoMoPay allows customers to pay for goods and services at no extra costs. Retailers like supermarkets, wholesale traders, shop keepers, pharmacies, restaurants and bars among others are now merchants that accept payments using MoMoPay. For customers, they will be making payments for the goods and services using MoMoPay at no extra cost – like sending withdrawal fees.
“When we introduced MTN Mobile Money, it revolutionized money transactions in the country. However, there is still one problem we need to solve. That is reducing cash transactions by taking out withdrawal charges, which makes it quite costly. It is the better way to pay,” explains Christopher Ssali - Senior Manager Mobile Financial Services Products - MTN Uganda
For several months now, MTN Uganda has been recruiting merchants like supermarkets, garages, shops and restaurants among others. There are now in excess of 25,000 merchants that customers can use to receive payments. Upon a merchant being approved, they receive a special merchant code to indicate that they accept MoMoPay. For a customer to make a payment, they will dial *165*3# or use the MyMTNApp, enter the merchant code and pay the exact amount for the goods they have purchased.
“Currently, when customers want to make payments using mobile money, they will be asked to add withdrawal fees to the amount. With MoMoPay, the customer pays the exact amount for the goods purchased, providing that incentive not to move around with cash,” Christopher Ssali added.
MTN Mobile Money, which currently has over 8.8 million customers, has transacted over Ugx30trillion since inception in 2008. What still exists are the cash transactions that put customer and merchants at risk, when moving the money.
“The risks of carrying money by both customer and merchant are high, unlike MoMoPay. The merchant will receive payment directly into their mobile money account and they will be able to use it for several other features like making salary payments, transferring it to their bank account, purchase airtime for customers – and earn a commission, among others,” said Elsa Muzzolini, the General Manager Mobile Financial Services at MTN Uganda.
Merchants will be charged 1% on each transaction for an individual and 2% on a business merchant payment.
“The benefits for the merchant are many. They can earn commission for selling airtime. There will be improved financial control because they will avoid cash shortages and safety and security of the funds received, at the premises and for the merchant’s employees. Furthermore, merchants can even pay their suppliers with MoMoPay. For instance, a hardware shop may want to re-stock cement. Using MoMoPay, they will transfer funds directly to the account of their supplier and the cement will be delivered,” Muzzolini explains.
MoMoPay is the latest addition to Mobile Money’s arsenal of tools that helps combat the pain experienced by customers when making transactions. Over the next months, MTN will be looking to recruit merchants and where the MoMoPay will be displayed means payments are now acceptable