Airtel, MTN and a dozen other Fintech companies have secured payment system and payment service permits in Uganda after the country’s National Payments System was gazetted this month.

African countries are fast-tracking the provision of permits to Fintech companies to deepen financial inclusion and allow them to tap into the growing uptake of electronic payments services.

For Uganda, the enactment of the National Payments System Act on 5 March has paved the way for the licensing of 14 Fintech companies, including Airtel Mobile Commerce Uganda, MTN Mobile Money Uganda, Interswitch, Pegasus, Micropay and Wave.

Banks like Stanbic Bank Uganda are now officially e-money issuers, while other companies such as Chipper Technologies, Future Link Technologies EzeeMoney, Guiness Tech and Agent Banking Corporation have also been granted Payment System Operators, Payment Service Providers and Issuers of Payment Instruments permits.

The Bank of Uganda stated: “The public is advised that Section 6 of the National Payment Systems Act, 2020, prohibits the offering of a payment service, operation of a payment system or issuance of a payment instrument without a license issued by the Central Bank.”

Fintech companies operating in Uganda without licenses “are advised to regularise their operations as provided for under Section 7” of the National Payment Systems Act, 2020.

“Bank of Uganda will continue to support the development of a vibrant and resilient payments ecosystem that promotes financial inclusion and economic growth.”

Uganda has continued to make strides with its regulatory approach to the financial services sector, with the World Bank saying the financial sector is “the largest single recipient of FDI inflows” on the back of “improvements in the regulatory framework” for the industry.