Telecommunications giant MTN Uganda has entered a deal with multinational retailer Shoprite to enable customers of both companies to use MoMoPay in making payments.
Introduced to the Ugandan market in the third quarter of 2018, MoMoPay is a payment system that enables customers to pay for goods and services directly from their mobile money accounts using merchants’ codes.
MTN Uganda registers merchants who are then given codes that are used by customers to buy goods or pay for services using the USSD code, 165*3#. (When you enter a shop where the merchant is registered, you’ll dial the aforementioned code and then you’ll be prompted to enter the code to process the transaction.)
With Shoprite Group which operates 2,689 outlets in 15 countries across Africa and the Indian Ocean Islands, MTN Group is massively expanding the reach of this mobile money service.
The retailer which launched in Uganda in 2000 has multiple branches around Kampala through which over 10 million mobile money subscribers can use MoMoPay.
At the launch of the deal with Shoprite which happened at the retailer’s store located at Forest Mall in Lugogo, Kampala, the acting General manager for Mobile Financial Services at MTN Uganda Chris Ssali, said:
“Although clients have already been paying for their shopping using MoMo Pay, it’s today that we officially make it clear to the public that they can go ahead and pay directly from the mobile money accounts at Shoprite outlets in Uganda.”
He went on: “At MTN we are committed to simplifying financial transactions by enabling people to transact comfortably and conveniently and that’s what MoMoPay is about.”
According to Ssali, they’ve partnered with fuel stations, pharmacies, hotels (mainly in Kampala) and the service will soon be expanded outside Kampala.
He added that they’ve so far “recruited over 75000 merchants and we continue to grow and onboard more merchants.”
How to use MoMoPay at Shoprite
When you are through with picking items, you’ll go to the till where the cashier will list your items to get the total amount you’re supposed to pay.
At a PoS Machine, you’ll be asked to enter your Mobile Money number, shortly after which you’ll receive a message requesting you to enter your PIN number and complete the transaction.
Acting General manager for Mobile Financial Services, Chris Ssali, pays for his groceries using #MTNMoMoPay to help demonstrate the process. pic.twitter.com/HAzt1dGFc1
— MTN Uganda (@mtnug) April 16, 2019
Advantages of using the service
To the merchants, they are able to earn commissions through selling airtime, improved financial control (no need to count cash and making mistakes, no counterfeit notes, etc.), there is also improved safety of money in case your shop is broken into and bookkeeping becomes easier.
To the consumer, the burden of moving around with cash is removed and you can remotely make a transaction for someone.
To both the customer and the merchant, the service is currently free, unlike other mobile money transactions where you are charged an extra fee.
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