Understanding Mobile Money

Mobile Money Charges
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Exploring and tapping into the unique features from Mobile money makes us see through the future of money and our country.  Mobile Money is a mobile payments system based on accounts held by a mobile operator and accessible from subscribers’ mobile phones. The conversion of cash into electronic value (and vice versa) happens at retail stores (or agents). All transactions are authorized and recorded in real-time using SMS. Mobile money started gaining ground by around 2009 in Kenya, with Safaricom, which through the grant that was offered to it by GSMA, supported the development of a social transfer payment project via M-Pesa.

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MTN introduced the first Mobile Money service to the Ghanaian market six years ago in 2009 and the celebration of Mobile Money Month was launched two years after in 2011, and remains an annual event since.

Mobile Money has since made its way through Africa, and at the moment it is present in many African countries


African Countries with mobile money

  • Benin
  • Botswana
  • Burkina Faso
  • Burundi
  • Cameroon
  • Chad- CFA franc (XAF)
  • Democratic Republic of Congo- Congolese franc (CDF)
  • Egypt- Egyptian pound (EGP)
  • Ethiopia
  • Gabon
  • Ghana
  • Guinea-Bissau- CFA franc (XOF)
  • Ivory Coast
  • Kenya
  • Lesotho
  • Liberia
  • Madagascar
  • Malawi
  • Mali
  • Mauritania
  • Mauritius
  • Morocco
  • Mozambique
  • Namibia
  • Niger
  • Nigeria
  • Rwanda
  • Senegal
  • Sierra Leone
  • Somalia
  • South Africa
  • Sudan
  • Swaziland
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

It’s extremely convenient but the taxes are completely demanding. I believe government taxing mobile money will never come to an end, because it’s something, man people use. It’s user- friendly and safe. It’s hard to be conned out of mobile money

Meaning Of Mobile Money

The use of a mobile phone in order to transfer funds between banks or accounts, deposit or withdraw funds, or pay bills. This term is also used for the broader realm of electronic commerce; it can refer to the use of a mobile device to purchase items, whether physical or electronic.

How Mobile Money Works

Mobile money is a way to store and manage money in an account linked to a mobile phone, similar to a bank account. … Airtime (also known as mobile recharge) is used to make phone calls, send SMS, or use data. Airtime cannot be used as money to purchase other items or pay bills.

To send or receive money to a friend: (1) Register with a money transfer service by setting up an account and making a deposit. (2) Use the provided short text commands to text cash to your friend’s phone number or account id. (3) Receive funds by requesting and accepting payments via text message.

Mobile Money Agent

A person or business that is contracted to facilitate transactions for users. … They also often provide front-line customer service—such as teaching new users how to initiate transactions on their phone. Typically, agents will conduct other kinds of business in addition to mobile money.

Mobile Money Loans

You can now get a quick loan using MTN Mobile Money on the different networks you subscribe to.

Getting A Loan With MTN Mobile Money

You can get money instantly off your phone by accessing a loan through Mobile Money. Here are the steps you can follow to access a loan on your phone;

STEP 1: Dial *165#

STEP 2: Select ‘Financial Services’

STEP 3: Select ‘ATM Cash out’

STEP 4: Generate a TIN

STEP 5: Enter your MTN Mobile Money PIN

STEP 6: You will receive a cash TIN (this TIN is only valid for 10 minutes and it will be received as an SMS message.)

STEP 7: Find the nearest Centenary Bank, or Interswitch ATM and use the TIN to complete the cash out.

While at the ATM Machine,

STEP 1: Wait or press any button for the MTN Mobile Money interface to appear on the screen

STEP 2: Select MTN Mobile Money

STEP 3: Enter your phone number

STEP 4: Enter the amount you wish to withdraw

STEP 5: Enter the TIN code which was sent to you on your phone

STEP 6: Choose whether or not you require a receipt for your withdrawal, then press OK

STEP 7: The machine will then dispense the cash and the receipt (if requested)

STEP 8: You will also receive a message on your phone confirming the transaction

How To Reset MTN Mobile Money PIN


  1. Launch the My MTN app or select to open the app or icon.
  2. On the menu, select MobileMoney.
  3. Then, select My Wallet.
  4. From the menu options within My Wallet, select Change MM PIN.
  5. Enter your old MM PIN code, and select OK.
  6. Enter New MM PIN code, and select OK

The Mobile Money Tax

Ugandans got introduced to a 1% tax levy on sending and depositing as well as the withdrawal of money via the Mobile Money service. This development was followed by several public statements in opposition to the Mobile Money Tax and was revisited and brought down to a 0.5% levy

mobile money tax
Credit: Twitter

For which transactions MTN Mobile Money subscribers will pay the tax?

  1. Withdraw – To get 200,000 Ugx in cash, the agents withdraw 205,575 Ugx on my wallet: 200,000 + 3,575 for the fees +2,000 for the tax
  2. Mobile Money transfer – When I sent 200,000 Ugx the receiver will receive 198,000U Ugx: 200,000 – 2,000 for the tax
  3. Mokash – When I request for a 100,000 Ugx loan, I will receive 99,000 Ugx on my account: 100,000- 1,000
  4. Bank to Wallet – When I pull 1,000,000 Ugx from my bank account, I will receive 990,000 Ugx on my mobile wallet: 1,000,000 – 10,000
  5. Salary payment – When I pay my employee using mobile money, they will receive the amounts deducted from 1%​.

Which are the transactions where MTN is not applying the tax to the Mobile Money subscribers?

  1. Deposits to Mobile Money – I give 10,000 Ugx to an agent and I receive 10,000  Ugx on my wallet
  2. Buying Airtime, data or MTN bundles – Tax does not apply when I buy Airtime using Mobile Money. I pay 10,000 Ugx and I receive 10,000 in airtime
  3. MoMoPay – If my bill at the restaurant is 10,000Ugx I will still send 10,000 Ugx using *165#
  4. Bill payment – The tax does not apply to the subscriber, But some companies may decide to pass it to the subscriber. E.g., UMEME will give you 1% less units
  5. Wallet to Bank – When I want to transfer 100,000Ugx to my Bank account no tax apply. But some Banks may decide to pass it to the user and only transfer only 99,000.

Getting A Loan With AIRTEL Money

Airtel Uganda uses the famous Wewole credit service to grant loans to its customers. Any Airtel customer who is fully registered on Airtel Money can access a loan with Wewole. You can borrow from UGX 8,000 to UGX 500,000. Unlike MTN, Wewole does not require one to generate a TIN number to access a loan from the bank.


STEP 1: Dial *185#

STEP 2: Select option 8 (Wewole)

STEP 3: Select option 1 to request a loan

STEP 4: Enter your Airtel Money pin to complete the transaction.

How To Pay Bills With Mobile Money

  1. Go to your SIM Menu, then select Mobile Money.
  2. Select Pay Bill.
  3. Select Utility to Pay.
  4. Enter Account Number.
  5. Enter Amount, then enter Mobile Money PIN.
  6. Dial the given option and,
  7. Select Utility to Pay.
  8. Enter Account Number.

Mobile Financial Service

Types of Mobile Financial Services. … Mobile banking, by definition, performs actions on a traditional bank account. These actions involve obtaining account information, and transacting on accounts. Mobile payments are payment for goods and services using a personal mobile device as the transaction terminal.

Mobile Money Transfer

Mobile payment (also referred to as mobile money, mobile money transfer, and mobile wallet) generally refer to payment services operated under financial regulation and performed from or via a mobile device. …

Mobile Money Account

Mobile money is an electronic wallet service. This is available in many countries and allows users to store, send, and receive money using their mobile phone. The safe and easy electronic payments make Mobile money a popular alternative to bank accounts. It can be used on both smartphones and basic feature phones.