In March 2024, Mobile Money (MoMo) marked a significant milestone in Uganda, its birthplace: 15 years of revolutionising the financial landscape.

From its humble, somewhat speculative beginnings, MoMo has transformed Uganda’s financial sector, extending financial inclusion to millions previously excluded from traditional banking systems. This impact is evident in the headline numbers, which making for startling reading.

With 13 million monthly active users by the end of September 2024 and over 200,000 agents serving customers across the country, MoMo has become an integral part of Uganda's financial ecosystem. In 2023 alone, MoMo Uganda processed over US$36 billion in transactions, connecting users with over 300,000 merchants and all commercial banks in the country. This widespread adoption has not only facilitated personal transactions but has also stimulated economic activity, particularly in rural areas where access to formal banking services was previously limited.

According to Richard Yego, CEO of MTN Mobile Money Uganda, there are multiple reasons for MoMo’s success. Certainly, a great deal of hard work has gone into getting it up and running and sustaining its success. But the most important factor, he believes, is trust. Trust from consumers and all other stakeholders in MTN, in the brand, its values and what it stands for. And trust that MTN will keep its promises.

The roots of Mobile Money

This trust was built in a context where traditional banking penetration was low.  "In the past, people would travel over 50km to access banking services at a bank branch,” Richard says.

MoMo emerged as a convenient alternative, starting with basic services like Cash-in-Cash-out and P2P Money transfers. As the years passed, MTN Uganda expanded its offerings to include airtime and bundle top-ups, bill payments and bank integration among others. Over the years, MoMo Uganda has grown exponentially, connecting multiple partners via open APIs to enhance financial inclusion in the country.

Charting the future

Today, MoMo continues to be used predominantly by customers depositing cash with agents and doing transfers, often to distant relatives. Cash withdrawals are also commonplace but, Richard says, these attract higher fees - which MTN shares with its agents. However, MoMo is evolving. Richard and his team are on a drive to diversify, moving more and more into payments for goods and services. They are also working to scale the loans and savings offering. Currently it has five different consumer loan products in the market and recently introduced business loans. Savings and e-commerce are new frontiers the business is also pioneering.

Despite the impressive statistics, Richard believes that even in Uganda, MoMo has “barely scratched the surface”.

“Our focus is not on competing with banks, but on working with them to reach the vast majority of Ugandans who still rely primarily on cash,” he states. “Still today, 95% of transactions are done in cash. We want to get cash out of the physical wallet so that people use MoMo whether it be for paying their bus fare, buying online, paying utility bills or managing all of their finances.”

With nearly 13 million MoMo customers in Uganda at the end of June 2024, and around 21 million active MTN mobile customers, the aspiration is to bridge this gap, leaving no-one behind on the financial inclusion journey.  

As Richard affirms, "MoMo is the future, and that future is being shaped right now, in Uganda, across all MTN operations and globally."