Kampala — MTN has started a money transfer service code named mobile money transfer.

Erik van Veen, the chief commercial officer, said the new product was still at the pilot stage involving 200 customers.

"The product has been undergoing testing since October. We will introduce it officially after further tests to guarantee security, reliability and accessibility to the majority of the people," he said. Kenya's Safaricom has a similar service.

To use this service, one's sim card has to be upgraded; one can open an account of up to sh1m from MTN agents and send it to recipients, who will also receive from an agent all over the country within minutes." Van Veen explained.

He said the telecom firm was cleared by the central bank to before it started tests.