MTN Mobile Money users hit 14.5 million as lending, digital payments surge in 2025

MTN Mobile Money Uganda Ltd says its customer base and transaction volumes grew strongly in 2025, driven by rapid expansion in digital lending, merchant payments and partnerships aimed at deepening financial inclusion.

Speaking to business reporters , the company’s managing director, Richard Yego, said MTN Mobile Money ended the year with more than 14.5 million individual users, up from 13.8 million in 2024, putting the firm on track to meet its target of adding at least one million new users in the year.

On the telecommunications side, MTN Uganda now has over 23.5 million subscribers, although not all transact regularly on mobile money. Yego said the average active customer carries out about six transactions per month, reflecting steady usage growth.

“2025 has been a year of both challenges and opportunities. We’ve continued to deepen access to our services and extend financial inclusion to the underserved,” Yego said.

Agent, merchant networks expand

MTN Mobile Money’s agent network expanded to nearly 250,000 active agents in 2025, while the merchant base grew to more than 100,000 active merchants nationwide.

Yego said targeted incentives, including one free cash-out per day of up to Shs500,000, have helped reactivate dormant agents and encouraged informal merchants — such as market vendors and boda boda water suppliers — to accept electronic payments.

“These interventions have helped drive daily transactions and strengthened our last-mile distribution,” he said.

Digital lending drives growth

Digital lending emerged as one of the fastest-growing segments of MTN Mobile Money’s business in 2025.

The number of unique borrowers more than doubled to over 8 million, from 3.5 million in 2024, while the total number of loans disbursed increased fivefold. The value of loans is projected to reach Shs2.5 trillion by year-end, up from Shs1.4 trillion the previous year.

Products such as Mobile Advance, launched in September 2024, have been central to this growth by enabling customers and agents to continue transacting even when they face short-term cash constraints.

Partnerships widen impact

Yego said partnerships remain a critical pillar of MTN Mobile Money’s expansion strategy.

Through a school fees loan programme run in partnership with Furaha and Standard Chartered Ventures, the company disbursed more than Shs5.5 billion in 2025, supporting over 10,000 students to remain in school.

In insurance, MTN Mobile Money partnered with Sanlam Insurance to offer micro-insurance products, allowing customers to contribute as little as Shs500, broadening access to risk protection for low-income earners.

Digital payments and new products

MTN Mobile Money rolled out several new digital payment solutions in 2025. A virtual card launched in March now has more than 250,000 activated cards, with about 100,000 users transacting consistently, enabling Ugandans to make online payments beyond the country’s borders.

The company also launched its NextGen mobile app three months ago, which has been downloaded by over 500,000 users. While USSD still accounts for about 95 percent of transaction traffic, Yego said MTN aims to grow app-based transactions to 20 percent in the medium term.

Focus on merchants and SMEs

MTN Mobile Money is also deepening its merchant services offering. Informal merchants are benefiting from merchant-to-merchant payment solutions that ease stock purchases and cash flow.

For formal businesses, the company is developing a comprehensive platform that will allow merchants to manage tax payments, supplier settlements and salaries. The platform is expected to be rolled out in the first quarter of 2026, targeting small and medium-sized enterprises and corporate clients.

Savings, investment products gain traction

In April, MTN Mobile Money introduced a unit trust investment product, mobilising Shs40 billion in deposits. About Shs32 billion has since been withdrawn, leaving assets under management at approximately Shs8 billion.

Yego said the company plans to fully integrate the investment product into the mobile app to make savings and investment tracking more seamless for users.

Competition, collaboration and outlook

Uganda currently has 53 licensed payment service providers, creating a competitive but collaborative environment, according to Yego.

He said MTN Mobile Money is working with industry players to promote interoperability, reduce transaction costs and improve customer experience, including plans to cut wallet-to-bank and bank-to-wallet transfer fees by up to 60 percent. The upcoming national payments switch is also expected to simplify transactions across banks, fintechs and mobile money platforms.

Looking ahead to 2026, Yego said MTN Mobile Money’s ambition is to make mobile money an everyday currency, reduce reliance on cash and accelerate digital adoption.

“Our focus is on enhancing lending, expanding merchant services, strengthening partnerships and deepening financial inclusion,” he said. “We want to empower Ugandans to transact, save and invest effortlessly through secure and convenient digital solutions.”