Fintech companies, MTN Mobile Money Uganda Ltd and Airtel Money Commerce Uganda Ltd, have together announced a significant profit after tax of Shs 452.7 billion for the year ending December 31, 2023, indicating a strong embrace of mobile financial services.

MTN MoMo saw a notable 25.2% increase in profit after tax, reaching Shs 202.9 billion, driven by a surge in mobile money usage. The platform now has 12.1 million active users, showing a 10.1% rise from the previous year. Furthermore, MTN MoMo reported a 19.4% growth in total revenues to Shs 784.4 billion, with assets expanding by 30% to Shs 1.8 trillion.

The platform handled an impressive 3.4 billion transactions throughout the year, with the total transaction value jumping to Shs 133.2 trillion, up from Shs 93.2 trillion in 2022.

Richard Yego, Managing Director at MTN MoMo Uganda Ltd, attributed the growth in mobile money customers to the adoption of the cashless payment solution, MTN MoMo Pay, which saw merchant numbers grow by 68.7% to over 292,000. He noted that the number of mobile money agents remained stable at just over 166,200.

“Our aim is to cultivate a marketplace that supports cashless and digital economies through affordable, inclusive, understandable, and comprehensive financial services,” said Yego.

The company experienced a significant increase in payouts for both interest and microloans to customers, with amounts reaching Shs 44.2 billion and Shs 569 billion, respectively.

Meanwhile, Airtel Money Commerce Uganda Ltd saw a rise in profit after tax, reaching Shs 249.8 billion in 2023 compared to Shs 216.5 billion in the previous year.

The firm’s total income also increased to Shs 737 billion, driven by a rise in assets from Shs 674.2 billion to Shs 883.5 billion during the same period. However, Airtel Money Commerce did not provide specific details about its customer base or transaction values.

In terms of mobile money fraud, the “Beera Steady, Be Better” campaign, launched in collaboration with Next Media, the Ministry of ICT and National Guidance, Uganda Communications Commission, and Bank of Uganda, has resulted in an 86% reduction in fraud incidents.

MTN MoMo continues to utilize its internal business processes and artificial intelligence capabilities to develop customized solutions that anticipate and meet customer needs, utilizing unique social network analysis studies and customer value management systems.