Susan Wamuyu and Julius Omondi
1 July 2009
Kampala — A new service to transfer money through mobile phones promises to revolutionarise banking for the majority of Ugandans.
Currently, it is estimated that only 1 million Ugandans have bank accounts compared to the 8 million that carry mobile phones.
Zain Uganda on Monday became the second telecom company in Uganda after MTN to offer the mobile money transfer service dubbed ZAP.
The service enables Zain subscribers to use their handsets to transfer money pay bills, deposit and withdraw cash currently conducted mainly in banking halls or through ATM's.
"Many people in East Africa do not have bank accounts, therefore ZAP will bridge the financial services of the bank and the people," said Mr George Buza.
He also added that ZAP will lessen the burden of transferring money among the majority who do not own bank accounts. "Now with over 600 ZAP agents registered countrywide, Zains customers in Ugnada can start to enjoy the service," said Yesse Oenga, Zain Uganda,s managing director during the launch at Kampala Serena Hotel on Monday.
"Most Zain customers have already received the ZAP menu on their phones. After registering, they can now start enjoying the service. By enabling people to use their phones as wallets, we hope to deliver lasting benefits not just for our customers, but also for the Ugandan economy.
To register and use the service, one needs to fill in two copies of application forms at any Zain Zap agent outlet. One copy will be retained by the agent and another by the customer.
Once the Zain sim-card is validated, the account will be automatically initiated to transact business.
The service will be priced at Shs250 due to Zain, additional recommended costs, as published from time to time, will be due to Zain ZAP agents for the provision of cash in and cash out.
"ZAP service has been launched, not to out-compete banks but to serve those that do not have accounts," Mr Oenga said. He added that ZAP will cooperate with banks as it has already started with Standard Chartered and is soon partnering with Western Union.
There is no minimum amount for a transaction in ZAP therefore the service can be used for all everyday purchases.
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