Private Sector Initiatives In Payment Systems
Overview
PSD recognizes the important and significant role of the private sector in the provision of competitively priced, suitable and widely accessible payment services, whenever possible and prudent. Consequently, banks and telecommunications providers have introduced a number of products in the banking industry.
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Private Sector Initiatives In Payment Systems
Automated Teller Machines (ATMs)
Since the introduction of ATMs in Uganda in 1997, there has been rapid growth of ATM installation transaction volumes and values. First and foremost, the use of the ATM facility allows the cardholder of the appropriate encoded card to obtain funds anytime of the day or night.
Today, ATMs have spread out countrywide to about 539 by end of December 2009. While about 216 ATMs or 40% are concentrated in Kampala, the remaining 60% are fairly distributed in the major upcountry towns, as shown in the table.
Table 1: Distribution of ATMs Countrywide
|
|
KAMPALA
|
MBARARA
|
JINJA
|
MBALE
|
ARUA
|
GULU
|
OTHERS
|
|
ATMs
|
216
|
22
|
21
|
21
|
17
|
17
|
249
|
|
%
|
40.0
|
4.0
|
3.5
|
3.5
|
3.2
|
3.2
|
46.4
|
Table 2: Distribution of ATMs bank-wide
|
|
STANBIC
|
BARCLAYS
|
CENTENARY
|
EQUITY
|
CRANE
|
SCB
|
OTHERS
|
|
ATMS
|
146
|
83
|
64
|
47
|
34
|
29
|
140
|
|
%
|
27.1
|
15.4
|
11.9
|
8.7
|
6.3
|
5.4
|
26
|
The National Switch
In June 2005, the Bankom Switch became operational. The switch was expected to encourage use of payment cards so as to make possible use of Electronic Funds Transfer at Point of Sale (EFTPOS). Furthermore, it was supposed to facilitate prepayments for consumption of utilities and loading of airtime on mobile phones.
Phone Banking
Banks have introduced a facility where customers can make enquiries regarding their balances by using the fixed phone facility. Registered customers are given a Personal Identification Number (PIN) which enables them use their mobile phones to access banking services except cash withdrawals.
Personal Computer Banking
PC Banking is a form of online banking that enables customers to handle a number of banking transactions from a PC via software installed by a bank into a modem. For instance, one may use the PC to view his/her account balance, request transfers between accounts like salary payment or pay bills electronically.
Internet Banking
Internet banking as a delivery channel which involves using computer network connected onto a website to transact banking activities. Several banks have installed the Internet facility with their customers who are using the channel.
Point Of Sale (POS)
Some banks have installed point of sale terminals at the supermarkets and petrol stations. These POS terminals enable customers with debit cards like the ATM to purchase goods and services using cards.
Mobile Payment System
In Uganda, the Mobile payment system was first introduced by two telecommunications service providers; MTN and Zain, as Mobile Money and Zap respectively. Other companies are making plans to provide similar services.
Usage of Mobile payment facilities has become a popular means of transmitting money across different regions in Uganda because of its low transfer charges, quick and easy process and availability among the unbanked and rural communities of the population.
Around 400,000 customers are currently using mobile payment facilities processing around 1.3billion UGX per day.
