Telecom company, Airtel Uganda, has announced the completion of the process of separating their mobile money business as required by the law.
Under the National Payment Systems (NPS) Act, 2020, telecom companies are required to split as standalone businesses; mobile money and telecom operations.
The new law was passed in September 2020 and the NPS regulations were gazette in March this year.
Consequently, in pursuant to section 9 of the act, the Bank of Uganda in May announced the issuance of several licences to Airtel Mobile Commerce Uganda Limited including A Payment Service Provider licence which authorizes the company to provide electronic services(Airtel Money) and a Payment Systems Operator Licence – (Electronic Money Systems)which authorizes the company to operate a payment (Airtel Money)platform
Technically, the Airtel Money business has been transferred to Airtel Mobile Commerce Uganda Limited , an affiliate to Airtel Uganda.
On the other hand, Airtel Uganda will focus on the operation of telecommunication infrastructure and the provision of telecommunications services to its network subscribers and licensed operators.
Speaking about the new development, Manoj Murali, the Airtel Uganda Managing Director said nothing will change with the services they provide to customers.
“As a result of the separation, the Airtel Money Accounts and related information will be migrated or shared with the new company, with the same level of safety and protection, and in compliance with the privacy and data protection laws of Uganda and the directives of Bank of Uganda and Uganda Communications Commission. Nothing changes from a customer perspective,”Manoj said.
“The customer deposits are safe, secure and kept in reputable commercial banks with the same level of protection as other bank accounts.”
The new development means that the company can now operate as a savings bank where customers can open savings accounts .