MTN Mobile Money Uganda Limited (MTN MoMo) has officially introduced the Virtual Card by MoMo, a digital payment solution that allows customers to make secure online payments directly from their mobile money wallets without needing a physical card or traditional bank account. This innovation, launched in collaboration with Mastercard, Diamond Trust Bank (DTB), and Network International, is expected to significantly boost e-commerce adoption in Uganda. This follows the December Mastercard partnership with MoMo Rwanda for a similar virtual card.
Why the Virtual Card Matters
Uganda’s Growing Digital Economy
Uganda’s digital financial services sector has experienced rapid growth in recent years. According to data from the Bank of Uganda, mobile money transactions in the country totaled UGX 191 trillion in the 12 months leading to June 2023, marking a 23% increase from UGX 156 trillion the previous year.
This sharp rise highlights increasing reliance on mobile money platforms for everyday financial transactions. However, access to secure online payments – especially for services requiring card payments – has remained a barrier for many Ugandans, particularly those without traditional bank accounts. The Virtual Card by MoMo aims to fill this gap.
Key Features of the Virtual Card by MoMo
1. Digital-Only Card Linked to MoMo Wallet
- Directly linked to a customer’s MTN MoMo wallet.
- No need for a physical card or a bank account.
- Works wherever Mastercard is accepted online.
2. Secure and Flexible Payments
- Each virtual card can be topped up only with the amount needed for a specific transaction, helping users control spending.
- Transactions are secured using Mastercard’s global security standards, reducing the risk of fraud or unauthorized use.
3. Wide Range of Use Cases
The Virtual Card by MoMo can be used for:
- Paying School Fees: Enroll in local and international online courses.
- Boosting Business Ads: Pay for advertising on Facebook, Instagram, and X (formerly Twitter).
- Streaming Subscriptions: Pay for Spotify, Netflix, Apple Music, and other entertainment services.
- E-commerce Shopping: Shop on global platforms like Amazon, Alibaba, and eBay.
- Travel Bookings: Pay for flights, hotels, and car rentals on platforms such as Expedia and Booking.com.
- Local Online Shopping: Purchase goods and services from platforms like Jumia and Market by MoMo.
4. Easy Application Process
- Customers can apply for the Virtual Card by dialing *165*70#.
- Once issued, the card is automatically linked to the customer’s MoMo wallet.
- This allows anyone with a mobile phone to participate in the global digital economy.
5. Enhanced Security
- With no physical card to lose or be stolen, and each transaction requiring specific approval, the Virtual Card reduces the risk of unauthorized access.
- Mastercard’s established security infrastructure provides additional layers of protection.
Addressing Financial Inclusion
MTN MoMo says the Virtual Card by MoMo aligns with MTN Group’s Ambition 2025 strategy, which focuses on financial inclusion and economic empowerment across Africa. By offering a straightforward way to pay for online goods and services, even for unbanked customers, MTN MoMo is helping bridge the digital divide.
This product launch also supports Uganda’s broader goals of expanding access to digital financial services, especially for rural and underserved populations.
Insights from Key Partners
MTN MoMo Uganda
Jemima Kariuki Njuguna, Chief Product Officer at MTN MoMo, said the Virtual Card represents a “major milestone” for the company’s efforts to deepen financial inclusion. By providing a convenient and secure online payment tool, MTN MoMo aims to enable customers to participate more actively in the digital economy.
Mastercard
Muhammad Nana, Senior Vice President for Digital Partnerships at Mastercard, noted that this collaboration demonstrates Mastercard’s commitment to expanding financial inclusion across Africa by using technology to create accessible and secure financial tools. He emphasized that enabling digital payments for millions of Ugandans contributes directly to economic development.
How to Get the Virtual Card by MoMo
MTN MoMo subscribers can easily apply for the Virtual Card by:
- Dialing *165*70# on their MTN mobile phone.
- Following the prompts to activate the virtual card.
- Using the card details for online payments on any platform that accepts Mastercard.
Key Benefits
- No physical paperwork or bank visits required.
- Instant issuance and linkage to existing MoMo wallets.
- Flexible top-ups, with customers only adding funds as needed.
- Enhanced control over spending, with visibility via the MoMo app.
- Eligibility for potential discounts and rewards through partnerships.
Supporting Uganda’s E-commerce and Digital Services Growth
The Virtual Card by MoMo adds critical infrastructure to Uganda’s expanding e-commerce ecosystem. With increasing demand for online shopping, streaming services, remote learning, and travel bookings, a seamless and secure payment solution linked to mobile wallets can unlock new opportunities for millions of Ugandans.
This follows similar initiatives across Africa, where telecom operators are increasingly integrating virtual card solutions into mobile money platforms to support cross-border shopping, freelance payments, and online subscriptions.
Conclusion
MTN MoMo’s Virtual Card offers a practical solution to a long-standing challenge for Ugandans seeking to access online goods and services without a bank account or physical card. By leveraging MTN’s extensive MoMo network, Mastercard’s payment technology, and the infrastructure support from Diamond Trust Bank and Network International, the product enhances Uganda’s financial ecosystem while promoting greater digital and financial inclusion.
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