MTN MoMo Pay : How to pay for Goods and Services using MoMoPay

mtn momo pay
credit : SautiTech
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MTN MoMo Pay is the new easiest way to pay for goods and services here in Uganda using MTN mobile money. With MTN MoMoPay, merchants can sell airtime and earn a commission, pay salaries, pay suppliers as well as transfer money to the bank with much more ease than before.

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This how-to seeks to walk you through a step by step guide how to get started with this incredible service as a customer or merchant.

MTN MoMo Pay was launched a few months ago by Uganda’s Giant Telecom company MTN to enable merchants to receive payment for goods and services using MTN Mobile Money. ​

The service has gained traction among local merchants & customers with almost all businesses registering day and night to have an MTN merchant code.


What is MTN MoMoPay?

MTN MoMo pay is a mobile money service that allows customers to make payments for goods and services without using liquid cash but rather mobile money.

To use this service, a customer should be a registered mobile money user with credit on his mobile money account.

Similarly for merchants to use this service, they have to register with MTN MoMo pay team where they will be availed with a special mtn merchant code.

This code can then be pinned on their stores to allow people to easily pay for their goods and services with much ease.

This service is completely free on the customer’s end but may incur some costs on the side of the merchant as we shall see in the following sections.

Which businesses are eligible to register for MTN MoMo Pay merchant account.

If you’re a business owner and are willing to take a step in registering your business for MTN MoMo Pay merchant account, you should at least be among the categories below.

Some of these businesses include; Cinema halls ( which includes even local bibanda ), Clinics & Hospitals, Boutiques & Clothing shops, Kiosks & Maduukas, Salon/Barbershop, Stationery shop, Auto-parts shop, Bars, Electronics shop/store, Hardware outlet, Market vendor, Pharmacy, Eateries (Takeaways, Ice cream parlors, bakeries, cafes, roadside chicken, Rolex stands),  Supermarket, Transport (Boda-bodas, Matatu, Cab).

MTN MoMo Pay Charges for Merchants

Charges for Merchants differ varying from type to type of business this means formal business charges may slightly differ from those of informal businesses.

MTN MoMo Pay charges 2% for all formal businesses and 1% for non-informal businesses using the service.

The charges are levied on payments being processed by merchants and customers at that particular transaction.

MTN MoMo Pay Charges for Customers

MTN MoMo Pay allows customers to buy goods and services at no charge on top of the payment amount, however, the customer has to be a registered mobile money user and has a credit on his or her MM account.

How to use MTN MoMo Pay

If you’re interested in using this new mtn mobile money service here in Uganda, simply follow some of the procedures below:-

  1. Look for a merchant store or business with MTN MoMo Pay signpost or flyers. It’s at these business points you can use this service.
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  1. Reach out to your phone and dial 1653# and wait for a few seconds as service loads.

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  1. In the dialog activity that pops up enter the merchant code as seen from MTN MoMo Pay Cards or you can ask the business attendant to help you.

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  1. Then Enter the amount to pay and mobile money PIN.

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  1. You’ll receive an SMS notification shortly when the transaction is successful.

How to register for MTN MoMo Pay business?

To register for MTN MoMo Pay business, you’ll need to follow some of the procedures or guidelines indicated below:-

All you have to do is to simply send an email to MTN MoMo Pay team via [email protected] with the following information below and they will get back to you shortly.

  1. Your name
  2. Name of your business
  3. Contact number
  4. Location

You can as well contact [email protected] or call 122 for more information on MTN MoMo Pay .

Benefits of using MTN MoMo Pay

There are quite a number of benefits for using this MTN MoMo Pay as we shall see in the section below:-

  1. The service reduces risks involved in carrying cash everywhere you go.
  2. MTN MoMo Pay is completely free for customers and as such no worries of losing cash to smaller charges
  3. You can conveniently solve the issue of looking for customer change with MTN MoMo Pay
  4. There is also the possibility of earning additional revenues for merchants who can earn commission by selling airtime or making payments for customers
  5. Customers and merchants can deposit and withdraw funds from their bank accounts

Other Common Frequently Asked Questions

What is the difference between sending MTN Mobile Money and MoMo Pay?

The major difference between these two is, a customer is charged a certain percentage for sending mobile money whereas he/she may not be charged any coin for buying Goods and services with MoMo Pay.

The charges are levied at the merchant’s side according to the rates imposed accordingly.

How much does it cost to use MTN MoMoPay?

For every transaction, a merchant is charged 1% on payments for informal businesses and 2% on payments for formal businesses. The service is free for all customers.

How can a merchant view or confirm their merchant code?

If you’re a registered merchant with MTN MoMoPay, you can view merchant code by dialing 1653# and select option 8 to View ID.

How will the customer know the MTN MoMoPay Merchant code?

All merchant premises will have a 6 digit merchant code displayed prominently for the customer to see.

To pay for services a customer dials 1653# and then enters the merchant code, the amount to pay, and the Mobile Money PIN. This transaction is free for the customer.

How long will it take for the merchant to receive payments through MoMoPay?

MTN MoMo Pay transactions are received immediately with both the customer and merchant receiving instant transaction notifications via SMS confirmation.

How do I access my funds that have been received through MoMoPay?

You can access these funds to pay your supplier through MoMoPay. Momo allows you to pay the salaries of your employees. You can also transfer these funds to your bank account.

To get the funds as physical cash, just visit a Mobile Money agent or an ATM.

How does merchant sell airtime with MoMoPay

To sell airtime with MTN MoMoPay, the merchant should dial 1653# and select Pay for Customer then follow the steps.  

How does a merchant reverse a wrong/double Payment?

If you receive a payment that is meant for a different merchant or the customer enters a wrong amount when paying you, then you have to dial 1653#, select Reverse Transaction, and follow the prompts.

The merchant will need the Transaction ID to complete the reversal.

Is MoMoPay secure?

MoMoPay is very secure as the service is carried out using MTN mobile money and all the security precautions of the latter still apply. You’ll need to use your MTN mobile money Pin code to access the services.