Mobile Money is an electronic mobile service that allows users to send, receive or save/keep money on their mobile phones. It is the fastest-growing convenient alternative to traditional bank accounts. It is becoming increasingly hard to walk around outside without seeing yellow signs with MTN Mobile Money or red signs with Airtel Money. These services are being accessed on any mobile device with both smartphones and button phones inclusive of both individual users and a mobile money agent business.
Today, we are sharing with you everything you need to know so as to start a mobile money agent business in Uganda, stick with us.
Contents
Requirements to kick-start a Mobile Money Agent Business In Uganda
- One is required to have at least two transactions lines. MTN and Airtel are highly recommended. This is because of their dominant market share in Uganda. Most of the transactions carried out involve MTN and Airtel compared to other lines.
- Secondly, a Mobile phone is needed to carry out the transactions. A Dual sim phone(having two lines in the same phone) is better suited.
- Thirdly, one needs a retail space ie a room. If you can not afford rental fees of a room, you could always rent a verandah.
- Fourthly, furniture like a chair where you will be sitting and a display table with drawers where you can keep your tools of trade are needed. For your own convenience.
- Then, one needs transaction books to keep records of the transactions
- Also, it helps if one is situated at a busy location with enough customers
- And lastly, a trusted employee/operator if you can not run the business yourself or are too busy doing other things.
Read: MTN and Airtel Mobile money agent commission in Uganda
How To Get Started with a Mobile Money Agent Business
After fulfilling the above requirements, here are 3 approaches you can follow to get started
- Hire mobile money transactions lines or;
- Get a transaction lines through a master agent or aggregator or;
- Register for mobile money transaction lines directly from Mobile Network Operators (MNOs).
#1. Hiring A Transaction Line
With this, you do not need to go through the hectic procedure of getting a transaction line from an MNO. Here you simply hire an already registered line from someone or a company. However, when you hire someone’s line, you will be required to give up a certain percentage of your commission as rental fees. Most people charge between UGX 50-100k as rental fees.
#2. Getting A Transaction Line Through A Master Agent Or Aggregator
An aggregator or a master agent is an individual or company that is authorized by the Mobile Network Operators (MNO) to control their specific territory of operation. Master agents who distribute e-money to ordinary agents are also responsible for licensing Mobile Money agents and issuing them with MM transaction lines. Earnings are based on commissions and depending on the aggregator, you are required to give up a percentage on your commissions of up to 10%. Below is what one needs to be licensed as an agent through a master agent or aggregator:
- Original National ID or Passport
- Introduction letter from LC1
- A deposit of UGX 80,000/-
- Fill an application
- Have a starting float of at least UGX 2M.
Advantages Of Aggregated Mobile Money Lines
- Higher commissions. Hired lines attract a commission split.
- Direct payment of commission by MNO
- No delays in remittance of commissions
- Faster conflict resolutions
- Aggregated lines have a float management features ie you can get cash from super agents by exchanging excess e-float and vice-versa.
#3. Register For Mobile Money Transaction Lines Directly From Mobile Network Operators (MNOs)
If you do not want to hire a transaction line from someone or get one through an aggregator, you can directly register as an agent from the Mobile Network Operator (MNO) e.g MTN or Airtel. Requirements to register as an agent directly with an MNO differ. Below I discuss the requirements needed for one to directly register as an agent with MTN MoMo and Airtel Money.
Requirements to become an MTN Mobile Money Agent in Uganda
- You must have startup capital of UGX 1,500,000/- or UGX 1,000,000 if registering through a master agent or aggregator.
- Be registered as a limited company or sole proprietorship for period not less than one month.
- Have a photocopy of Certificate of Incorporation or sole proprietorship registration documentation and certificate of registration if the name on the trading license is a business name.
- Have physical or semi-permanent premises from where you can operate the business
- Photocopy of Certified Memorandum and Articles of Association
- One month Company Bank Statement/Bank statement
- Photocopy of valid ID(s) of company director(s)
- Letter of introduction from LC1
- Map and Photos of the Agent Premises
- Existing Business Turnover of at least UGX 5 Million per Month.
- Registered Board Resolution to start Mobile Money Agency Business
- Letter of Introduction of appointed handlers from the Directors
- Your official contacts and email address
- Proposed outlets to be inspected by the Telecom’s regional representative.
Requirements to become an Airtel Money Agent in Uganda
- Valid national ID or passport for foreigners
- Proof of residence
- Completed agent sub-agent application and registration forms
- Recommendation letter from LC1
- Passport photo of an applicant
- Certificate of Registration of Business Name
- Trading license [receipt]
- Filled Subscriber Registration Form
- UGX 2,000,000/- startup capital