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Ericsson Case Study Shows Mobile Money Growth in Uganda

July 11, 2016

Ericsson is celebrating the growing popularity of mobile payments in Uganda. In a new case study, the company outlines how its partnership with MTN Uganda, a division of South Africa-based telecom MTN Group, is helping to drive the mobile money industry.

Ericsson Case Study Shows Mobile Money Growth in UgandaWhile MTN Uganda’s mobile transaction services have enjoyed considerable popularity over the last several years, they also led to service outages and fraud concerns, Ericsson says. That’s why the company adopted the Ericsson Wallet Platform in September of 2014. At that time, says MTN Uganda General Manager Mobile Financial Services Phrase Lubega, the company had 3.1 million “active subscribers”, and by the end of the following year that number grew to 4.7 million; moreover, “it’s now history to hear about service outages because of capacity.” Meanwhile, electricity company Umeme has seen a 50 percent increase in mPayments since the launch of Ericsson Wallet Platform support, with Ericsson suggesting that this is just one example of how merchants have benefitted.

The positive trends have been noted elsewhere, too. Last summer, a report from Juniper Research highlighted MTN Uganda in a report on the growing mobile money transfer market, noting that 10 percent of the company’s revenues were coming from this area. And considering that in its new case study, Ericsson notes the positive impact of 2016 legislation that should further encourage Uganda’s mobile money industry, it appears that further growth is in store. It’s a trend that’s playing out elsewhere in Africa, too—via Ericsson’s solutions and others—and may suggest growth for mobile payments in the continent and beyond in the months and years to come.

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