A report by Bank of Uganda found that the annual amount of money transferred through mobile money totalled Shs 43.83tn in 2016, up from Shs 32.7tn in 2015. This accounts for a 34 per cent jump in value.
BOU said the volume of transactions also increased by 40.5 per cent to 974.7 million in 2016 from 693.3 million a year before.
The growth is attributed to the convenience of the platform that allows users to send money at their own time of convenience. As at December 31, 2016 there were seven mobile money service providers: MTN, Airtel, Uganda Telecom, Africell, M-Cash, EzeeMoney and Micro Pay.
Uganda Communications Commission 2015/16 annual market and industry report said the number of registered mobile money telephone lines increased to 21.5 million as at the end of 2016 from 21.1 million as at end of December 2015.
Meanwhile, the National Social Security Fund (NSSF) last week announced their partnership with MTN Uganda to allow savers to transfer their savings to the fund through mobile money.
According to NSSF, a survey they conducted last year on voluntary contributions found that 67 per cent of the respondents said it would be much easier to remit their monthly contribution through a mobile money platform.
MTN Uganda chief executive officer Wim Vanhelleputte said: "This will enable a significant part of our customers pay their pension and ensure they don't retire into poverty."