Multinational telco MTN has launched a mobile money transfer service in Uganda and announced plans to extend the service across its operations in Africa and the Middle East.
The MTN MobileMoney offering enables subscribers to send money, buy airtime and pay bills using their cellphone. Recipients do not need a bank account or phone to receive the cash, which can be collected through a network of local agents.
The launch in Uganda follows a six-month pilot, aimed at waterproofing the systems and operational processes in preparation for the commercial launch. Other locations under trial include Cameroon, Ghana, Cote d'Ivoire and Nigeria.
Five additional pilots were also recently launched in Benin, Congo Brazzaville, Guinea Bissau, Guinea Conakry and Liberia, ahead of a wider commercial roll-out
MTN has partnered with local banks for each pilot to ensure compliance with financial regulations, an issue which has dogged the pioneering M-Pesa operation in Kenya.