Wendi wallet targets retail savers with new 12.5 percent tax-free return

KAMPALA, Uganda — Digital financial platform Wendi has launched a 12.5 percent tax-free annual savings rate, targeting ordinary retail savers across Uganda as the cost of living and shifting economic pressures reshape household finances in East Africa.

The mobile wallet, developed by Pearl Bank, raised its previous maximum interest rate from 10 percent to offer a cushion for low-income and younger consumers seeking to preserve their purchasing power.

The move highlights how digital financial platforms are directly challenging traditional banking systems across the Global South. By removing structural barriers like minimum balance requirements and the need to travel long distances to physical bank branches, fintech applications are becoming critical tools for financial survival and wealth accumulation among previously unbanked populations.

Brenda Mpoora, head of fintech business at Pearl Bank, said interest on the new savings product is calculated and paid out on a daily basis. According to company officials, this provides immediate transparency for users who can monitor their earnings in real time, a departure from conventional banking models where interest updates are often delayed.

The initiative arrives as financial technology plays an expanding role in the region’s broader social fabric. Beyond private transactions, mobile wallets are increasingly used to manage public welfare infrastructure. In Uganda, the Wendi platform—which has onboarded over 1 million subscribers since its launch in late 2023—serves as a primary distribution channel for state relief funds, including the Parish Development Model and emergency aid for climate-displaced landslide victims in eastern Uganda.

With a network of 12,000 agents nationwide, the platform’s new aggressive rate marks a significant escalation in the race among financial institutions to capture retail capital by positioning digital tools as drivers of grassroots economic resilience.