The Uganda Bankers Association(UBA) has partnered with global digital payments leader, VISA to spearhead a program to accelerate contactless digital payments in the country.
The move seeks to empower the banking sector with knowledge and drive the adoption of contactless technology to foster a future of seamless and efficient transactions for individuals and businesses across the country.
Speaking during a training at Gold Tulip in Kampala, Wilbroad Owor the Executive Director of UBA underscored the importance of this partnership with VISA.
"The market is tough and some new players have come with solutions. A partner that brings new resolutions is an important one. VISA has strengthened security more than ever and any solution by a partner like VISA strengthens confidence," Owor said.
"Contactless digital payments have become necessary for many reasons. First of all, Covid gave us a very good learning experience of avoiding touching and contactless speaks to this. In terms of financial inclusion and security features, sometimes you want not to expose your PIN and people around you and move quickly after getting a service and this is what contactless digital payments provide."
Contactless payments utilize Near Field Communication (NFC) technology, allowing users to make transactions by simply tapping or waving their contactless-enabled cards, smartphones, or other devices near the payment terminal.
This eliminates the need for physical contact with payment devices, making transactions quicker and more hygienic.
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The Uganda Bankers Association Executive Director however noted that there is need to further popularize contactless payments in the country.
"The adoption of digital services in the banking sector is increasing by the day and there are numerous digital channels include mobile banking apps, traditional internet banking and cards which are the highest. There are about 3 million card holders across the industry mainly as ATMs but now increasingly used as merchant points at restaurants, supermarkets and fuel stations."
"Going contactless now means you can actually tap and get your payment done and you move on unlike the past where you had to swipe it and put in your PIN."
He said the area of concern for the banking industry now is security to be able instill confidence among customers while making digital payments.
Salma Ingabire the country director at VISA Uganda, Rwanda, Burundi and Tanzania, said whereas there are more than 3 million cards in the country, only 6% are on Point-On-Sale (POS).
"This percentage has not changed in a long time and the number of cards keeps increasing but the use is still low. Most people use the cards when they travel abroad. We need to create awareness about digital payments. Contactless payments provide convenience, allowing users to make swift transactions without the need to carry physical cash or wait for manual processing."
