Publications

Mobile Money Services were perceived as high-value, high-volume payment systems intended to link the bottomof-the-pyramid clientele to the national payment system. Due to the success of mobile money services in Kenya,mobile network operators set up these services in Uganda. A study to analyze a logical framework for enhancingthe integration of Mobile Money Service Providers in Uganda was undertaken. About 2.2 million clients use mobilemoney with services such as airtime purchases, Person to Person, and Person to Business money transfers. Mobilenetwork operators are the dominant stakeholders in mobile money services and utilize the operator-centric businessmodel that locks out competitors and limits interoperability. Commercial banks partnering with mobile operatorsin the model are mandated by law to maintain an account for the “cash float” ensuring that a regulated financialinstitution holds the physical cash backing the issued e-money. Integration of Mobile Money Service Providerswould necessitate an open business model that encompasses all stakeholders, promotes interoperability, andincreases the potential customer base. To achieve this, there is a need to cultivate institutional relationships thatencourage cooperation. It should also establish a legal framework that does not stifle innovation but ensures safetyfor customers’ e-money