UGX 5.7 billion worth of interest is to be distributed in pay-outs to customers for their mobile money balances for the quarter ended 30th June 2022.
MTN Mobile Money Uganda Limited was separated from its parent company, MTN Uganda, in May last year pursuant to the National Payment Systems (NPS) Act, 2020.
Section 49(6) of the National Payments Systems Act (NPS) of 2020 and Regulation 14 of the National Payment System regulations of 2021 stipulates that MTN Mobile Money Uganda pays its customers, interest earned on a Trust Account.
The over 19.8 million MoMo users who had a minimum of UGX 1 and above between 1st April and 30th June are to be the main beneficiaries of the payments since they are to receive a portion of the UGX 5.7 billion interest pay-out for the quarter ended June 30, 2022 at hand as its disbursement begun yesterday Wednesday 14th September 2022.
In case you do meet the criteria above, you should be able to receive a ka “you have received” with the reason “MTN MOMO INTEREST PAYOUT” or shall do so in the next couple of days.
While speaking at the announcement of the pay-out at a presser as held at the MTN Uganda headquarters in Kampala, Mr. Richard Yego, the managing director at MTN Mobile Money Uganda said the interest will be calculated based on each customer’s daily average mobile money balance for three months.
“As MTN Mobile Money Uganda, we strongly believe that this quarterly interest paid to customers will encourage a culture of savings and create wealth and opportunities for investment, especially in medium and small businesses which use the mobile money platform intensively, “
“We also hope that the pay-out will enhance financial resilience by bringing more people into the formal sector through Mobile Money and thus leading to substantial development and social well-being of the citizens as the country strives to achieve Vision 2040.”
Mr. Yego said customers will be notified through SMS alerts once the interest has been paid. However, the interest rates paid will be subjected to withholding tax as well as standard withdrawal charges.
The interest accrued on mobile money accounts that have not registered a transaction for fifteen (15) consecutive months will be transferred to the Bank of Uganda at the end of every quarter of every year.
He stated that customers could now save and invest with Xeno Investments via the mobile money platform and encouraged customers to utilize the various advance products including Momo advance, Mokash and Mosente to better their lives and those of their loved ones.
Adding to Mr Richard’s voice, Mr. James Mugabi the Chairman Board of Trustees for MTN Mobile Money Uganda Limited congratulated MTN MoMo for the milestones registered since it started operations more than a decade ago and especially for contributing immensely to financial inclusion and deepening among the unbanked population.
“I am glad that the MTN MoMo has stirred the demand for various financial services and products by people who are in the lower pyramid, and thus improving their livelihoods,” he said.
“Now the interest payout on their Momo balances makes the service even more important to the population in terms of savings which is the only option to growing wealth.”
“The pay-out will also build consumer confidence in the payment ecosystem and expand a set of mobile e-commerce capabilities to businesses and consumers as the economy becomes cashless.”, he concluded.
