COVID-19 is encouraging Cashless transactions in shops

MTN Uganda has eliminated some charges on its mobile money platform to help spur greater use of digital transactions and discourage the use of cash as a way to slow the spread of the Corona virus outbreak. The company, which has 8 million mobile money users out of a total 13 million mobile phone subscribers, said it will not levy any fees on money sent between customers on its platform. The offer “is designed to reduce the risk of transmission by avoiding the physical exchange of currency notes,” MTN said in a statement issued late on Tuesday. The move follows a similar approach in Kenya where last week the central bank announced measures to encourage the use of mobile money instead of cash to reduce the risk of transmission of the COVID-19 in the country.

emand for online and contactless payments is surging in SA, with many people opting out of making cash payments or using touch point-of-sale machines, amid fears of the spread of the coronavirus.

World Health Organisation advised the public to immediately wash their hands after handling cash, and concerns are mounting in other countries over whether cash might play a role in spreading the virus. In SA, for example, a growing number of retailers are scrambling to get online payment systems in place to meet a spike in demand from customers wishing to use contactless payment options via their mobile phones.