The Independent Uganda: You get the Truth we Pay the Price
The “Beera Steady, Be Better” campaign has led to an 86% reduction in fraud incidences
Kampala, Uganda | JULIUS BUSINGE | Fintech firms, MTN Mobile Money Uganda Ltd and Airtel Money Commerce Uganda Ltd, have collectively reported a remarkable Shs 452.7 billion in profit after tax for the year ended December 31, 2023, signaling a vigorous adoption of mobile financial services.
MTN MoMo recorded a substantial 25.2% growth in profit after tax, reaching Shs202.9 billion, propelled by an increase in mobile money usage. The platform now boasts 12.1 million active users, marking a 10.1% increase from the previous year. In addition, MTN MoMo reported a 19.4% rise in total revenues to Shs 784.4 billion, with assets expanding by 30% to Shs 1.8 trillion.
The platform processed an impressive 3.4 billion transactions during the year, with the total transaction value soaring to Shs133.2 trillion, up from Shs93.2 trillion in 2022.
Richard Yego, Managing Director at MTN MoMo Uganda Ltd, attributed the growth in mobile money customers to the adoption of the cashless payment solution, MTN MoMo Pay, which saw merchant numbers grow by 68.7% to over 292,000. He noted that the number of mobile money agents remained stable at just over 166,200.
“Our aim is to cultivate a marketplace that supports cashless and digital economies through affordable, inclusive, understandable, and comprehensive financial services,” said Yego.
The firm’s payouts in interest and microloans to customers also doubled to Shs 44.2 billion and Shs 569 billion, respectively.
On the other hand, Airtel Money Commerce Uganda Ltd reported a profit after tax of Shs249.8 billion for 2023, a rise from Shs216.5 billion in the previous year.
The firm’s total income climbed to Shs737 billion, bolstered by an increase in assets from Shs674.2 billion to Shs883.5 billion over the same period. Airtel Money Commerce did not disclose details regarding its customer base or transaction values.
Regarding mobile money fraud, Yego said the success of the “Beera Steady, Be Better” campaign, launched in partnership with Next Media, the Ministry of ICT and National Guidance, Uganda Communications Commission, and Bank of Uganda, has led to an 86% reduction in fraud incidences.
He said MTN MoMo continues to leverage its internal business processes and artificial intelligence capabilities to create tailored solutions that anticipate and meet customer needs through unique social network analysis studies and customer value management systems.
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