Phone Financing in Uganda on MTN MoMo and Airtel Money

In Kampala’s phone arcades, shops compete on price, but more and more they compete on payment plans. A customer who cannot pay UGX 650,000 at once may happily pay a deposit and then weekly installments by MTN Mobile Money or Airtel Money. The shop’s challenge is knowing, every evening, which customers are up to date.

Two networks, one record

Many customers have SIM cards on both networks and pay from whichever has a balance. Keep one installment record per customer in RecTym and note the transaction ID for each confirmed payment, whichever network it came from.

• check_circleGive each customer an account number to quote when paying.
• check_circleUse a merchant code rather than a personal number where possible.
• check_circleReconcile both statements every evening before checking overdue accounts.
• check_circleKeep a short exceptions list for payments without a reference.

Explain the plan in the customer’s language

Explain the installment terms and device management in Luganda, Swahili, Runyankore or English, whichever the customer understands best, before they sign. Customers who understand the plan pay more consistently and dispute less.

Fair use of the EMI lock

• check_circleSend a reminder before the due date.
• check_circleCheck both mobile money statements before any restriction.
• check_circleUse only the authorized process agreed with the customer.
• check_circleRelease the phone as soon as the final payment is confirmed.

Data protection

Uganda’s Data Protection and Privacy Act, 2019 applies to National ID details and phone numbers you collect. Keep the signed agreement with the account and take legal advice on your financing model. RecTym is software; it does not lend money.