Absa Bank Uganda has introduced digital payment solution that allows businesses to accept card-based payments from customers using smartphones.

Named Absa Mobi Tap, the payment solution available to Absa customers on Android mobile phones allows them to simply tap their debit or credit cards on their phones or tablets to make a payment.

"Technology is taking us a notch higher. Imagine your phone being able to collect money from your shop! The whole business of bullion vans is changing since you can have all your transactions on your phone or small gadget and it is the cashless economy we are introducing," Michael Segwaya, the Executive Director and Chief Finance Officer at Absa Bank Uganda said during the launch at National Theatre.

"One of the hindrances to the growth of MSMEs is the fact that a majority are informal and unbanked, which hinders their ability to access credit or attract investors. With this development, we are presenting an option for small businesses to have a clear, digital record of their transactions - which will go a long way towards helping them better manage their finances and demonstrate their viability to potential funders."

According to Musa Jallow, Absa Bank Uganda's Retail Banking Director the development is part of driving the digital economy in the country.

"Smart phones have completely changed the way we view the mobile phone. It is more than a device that we use to make calls. The mobile phone has become a powerful tool transforming lives for millions of people not only in Uganda but the entire world. The Absa Mobi Tap is going to tone a regular smart phone or tablet into a secure digital payment terminal that requires no additional hardware,"Jallow said.

"This automatically translates into lower operating costs for the business owner while ensuring a seamless experience for the customer. Through this we are empowering small and medium enterprises deeper into the financial system and aiding their formalization by helping them manage their finances."