ONLINE trading, an important aspect of business has continued to suffer as banks remain reluctant to issue credit cards.

Of the 14 bank operating in the country only Barclays Bank offers credit cards and the service is limited to its prestige-banking customers who are those with a monthly income of more than one million.

Banks say lack of a Credit Reference Bureau makes issuing credit cards a risky venture since perpetual debtors may not be tracked easily.

This has affected local companies engaged in online trading because their clientele is limited to Ugandans in the Diaspora of whom, majority may not even know about their services.

Such businesses have failed to grow and Ugandans are the losers in the long run. Businesses that trade online thrive on less operation costs and thus sell goods more cheaply.

Online businesses also offer consumers a wide range of products that may not be available locally.

Although the Bank of Uganda has been towing with the idea of setting up a Credit Reference Bureau, it has dragged on for sometime.

While some banks have been touting debit cards as a tool for online payment, it remains clear that most online shops prefer credit cards to debit. And as such, Ugandans have remained passive in e-commerce.

It is important therefore that the Central Bank speeds up the process to enable Ugandans get access to credit cards and take advantage of the vast online opportunities.