Uganda’s Bankers Association and Visa Join Forces to Accelerate Contactless Digital Payments

The Uganda Bankers Association (UBA) has joined hands with global digital payments leader Visa to launch a collaborative program aimed at accelerating contactless digital payments in the country.

The initiative aims to equip the banking sector with knowledge and drive the widespread adoption of contactless technology, fostering a future of seamless and efficient transactions for individuals and businesses across Uganda.

Speaking at a training event held at Gold Tulip in Kampala, Wilbroad Owor, the Executive Director of UBA, emphasized the significance of the partnership with Visa.

“The market is challenging, and new players have introduced solutions. A partner that brings innovative resolutions is invaluable. Visa has significantly enhanced security measures, bolstering customer confidence,” Owor stated.

“Contactless digital payments have become essential for various reasons. The Covid pandemic provided us with valuable lessons on avoiding physical contact, and contactless payments cater to this need. From the perspectives of financial inclusion and security, there are times when you prefer not to expose your PIN in public and want a quick and secure payment experience, which is precisely what contactless digital payments offer.”

Contactless payments leverage Near Field Communication (NFC) technology, enabling users to conduct transactions simply by tapping or waving their contactless-enabled cards, smartphones, or other devices near the payment terminal.

This eliminates the necessity for physical contact with payment devices, resulting in faster and more hygienic transactions.

However, the Executive Director of the Uganda Bankers Association highlighted the importance of further promoting contactless payments throughout the country.

“The adoption of digital services in the banking sector is steadily increasing, with numerous digital channels, including mobile banking apps, traditional internet banking, and cards, which are the most widely used. There are approximately 3 million cardholders in the industry, primarily for ATMs, but increasingly used for point-of-sale transactions at restaurants, supermarkets, and fuel stations.”

“Embracing contactless payments means you can simply tap and complete your payment, saving time compared to the past when you had to swipe and enter your PIN.”

He also noted that the banking industry’s current focus is on enhancing security to instill confidence among customers when making digital payments.

Salma Ingabire, the Country Director at Visa for Uganda, Rwanda, Burundi, and Tanzania, pointed out that while there are over 3 million cards in Uganda, only 6% are used for Point-On-Sale (POS) transactions.

“This percentage has remained unchanged for a long time, even as the number of cards continues to rise. Most people use their cards when traveling abroad. We need to raise awareness about digital payments. Contactless payments provide convenience, enabling users to make swift transactions without the need to carry physical cash or wait for manual processing.”