Telecom giants, Airtel Uganda have announced a deduction in their sending and withdraw fess on their mobile money service.
Addressing journalists on Monday at their headquarters in Kampala, the company’s Chief Commercial Officer, Amit Kapur said this was part of their efforts to ensure financial inclusion.
“Airtel Uganda has taken big strides towards financial inclusion through giving airtel money, the most affordable rates,”Kapur said.
“Starting October 31, our Airtel money customers will enjoy 79% and 60% reduction on withdrawal and person to person transfer rates respectively, making it the most competitive rate on the market.”
According to officials, the move is intended to draw more customers to use Airtel money services but also ease access to affordable and basic financial services across the country.
The massive reductions will apply to all transactions between one million and seven million shillings.
The development comes at a time when banking agents are slowly eating up on the market share of telecom companies that had controlled the financial sector through mobile money.
A year after its introduction, agent banking transactions total to shs30 billion daily, according to the Agent Banking Company of Uganda and a market share of almost 20% in the financial industry.
A number of people are now using bank agents to withdraw and deposit their money as compared to mobile money accounts following the introduction of the mobile money tax in 2018.