Telecommunications giant MTN-Uganda has slashed fees for sending money on its mobile money network. The new rates take effect on Saturday, September 7, 2019, and apply to only those sending from MTN to MTN network.
In a notice published on its Facebook page, the company cautions its customers not to pay mobile money agents after any transaction as fees are deducted directly from ones phone.
The charges show that for one sending between 500,001 to 7,000,000, a uniform fee of shs of 1,500 will be charged. This is down from 2,200 Shillings charged previously while sending 5001 to 500,000 Shillings, a fee from as low as 500 to 1,300 Shillings will be charged.
The Charges for sending to other networks and withdrawing have not changed.
Telecom companies are looking to reduce on the charges to entice more people onto the network but also make others send money more frequently.
As of June 2018, the number of mobile money transactions increased to 1.3 trillion up from 1.1 trillion in June 2017, according to the Bank of Uganda. The corresponding value of mobile money transactions increased to 73.1 trillion Shillings as at June 2018 from 52.8 trillion Shillings in the previous year.
MTN Uganda a subsidiary of MTN Group, is the largest telecom company in Uganda, with 11.2 million subscribers, accounting for 55 percent marketshare, as of 30 June 2017
In 2009, MTN Uganda introduced its mobile telephone-based banking product known as Mobile Money.