Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.


Pesapal gets green light to operate in Uganda

Article Image
The Bank of Uganda (BOU) has granted Kenyan digital payments startup, Pesapal, a Payment System Operator license, giving the company permission to provide mobile cashless transactions in the East African country.

Pesapal Uganda country director Martin Barungi said in a statement that the authorization gives Pesapal a license to drive cashless transactions increasing financial inclusion and convenience.

"Now, with the Bank of Uganda's regulatory green light, we will be able to hunker down in our continued effort to change the face of digital financial services in Uganda as a key stakeholder of its financial ecosystem," he added.

"We are delighted to have received the license from Bank of Uganda as this development sets us on course to revolutionize the digital payment ecosystem with innovative, convenient and secure digital financial services," continued the fintech's Uganda country manager Emmy Rono.

In 2019, the company launched its flagship offering, Pesapal Mobile, which customers can use to pay multiple bills in a single transaction and pay for goods and services by linking a credit or debit card with the app.

The payment gateway seeks to be Africa's safest and most convenient payment channel and has a presence in five other markets besides Kenya and Uganda including Malawi, Tanzania, Rwanda, Zambia and Zimbabwe.

Surging services

The mobile money market is booming in Uganda, with Pesapal not only working with but also fighting for a stake in the market with the likes of Safaricom's M-Pesa which recently launched a Visa virtual card that will allow secure cashless payments at merchant locations in over 200 countries through Visas global network.

Ugandan fintech app Eversend is also aiming to be a one-stop-shop for cross-border money transfers for Africans in the diaspora.

Pesapal's license is a step in the right direction. According to DataReportal there were 13.92 million Internet users in Uganda in January 2022 and the country's Internet penetration rate stood at just 29.1% of the total population.

However almost 58% of the population had a mobile subscription and almost 51% had a mobile money account, while only 32.8% of people had an account with a financial institution and only 2.3% of Ugandans owned a credit card as of February 2022.

Related posts:

*Top image is of Pesapal Sabi Smart POS. (Source: Pesapal).

— Matshepo Sehloho, Associate Editor, Connecting Africa

Innovation hub


Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuz program and the Orange Digital Center network.


Hot startup of the month: Rwanda's Ampersand

Connecting Africa's hot startup this month is Rwanda's Ampersand, which designs, builds, and manufactures electric motorcycles and battery packs for motorcycle taxis.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives


Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.


The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives


Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.


Leveraging agritech to build resilience against climate change

By Francis Hook

ICT analyst Francis Hook discusses agritech in Africa and how the agricultural sector is using technology to build resilience against the negative effects of climate change and to ensure food security.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up

Sign Up
Tag id test-002