Ugandan telecommunications company MTN last week launched a virtual payment card for subscribers of its mobile money platform, Mobile Money (MoMo). The move is expected to facilitate online transactions and boost payments beyond local merchants.
The initiative was launched in partnership with US payments giant Mastercard, with whom MTN signed an agreement in February 2024. In February 2025, Emirati payment solutions provider Network International joined the alliance. Local bank Diamond Trust Bank is also involved in the project for the Ugandan market.
“With the Virtual Card by MoMo, users can now make online payments on any e-commerce platform, website or social media that accepts card payments, ensuring a seamless and secure experience,” Mastercard said in a statement released on February 28.
Until now, payments via MoMo in Uganda were limited to the operator’s merchant network, which had 316,400 members as of September 30, 2024. The number of transactions increased by 25.1% in the first nine months of 2024 to reach 3 billion. The value of these transactions reached Sh114.5 trillion ($31.25 billion), up 13.3%.
A potential increase in transactions could lead to an increase in mobile money revenues. This could translate into a positive impact on MTN Uganda’s revenues, given that this growing segment is its second largest revenue source after voice services. In the first nine months of 2024, MoMo services generated Sh669.19 billion, up 25.6% from 2023. Fintech services, including MoMo, accounted for 29.7% of the operator’s service revenues, which amounted to approximately Sh2.308 billion.
Furthermore, the new service should enable MTN to attract new subscribers in a market where it is notably in competition with Airtel. As of September 30, 2024, it claimed leadership in terms of market share with 21.6 million mobile subscribers while official statistics indicate 40 million subscribers in the country. The company had also declared 9.3 million Internet subscribers and 13.2 million mobile money subscribers.
Source: Extensia
