Abstract

Mobile Money Services were perceived as high-value, high-volume payment systems intended to link the bottomof-
the-pyramid clientele to the national payment system. Due to the success of mobile money services in Kenya,
mobile network operators set up these services in Uganda. A study to analyze a logical framework for enhancing
the integration of Mobile Money Service Providers in Uganda was undertaken. About 2.2 million clients use mobile
money with services such as airtime purchases, Person to Person, and Person to Business money transfers. Mobile
network operators are the dominant stakeholders in mobile money services and utilize the operator-centric business
model that locks out competitors and limits interoperability. Commercial banks partnering with mobile operators
in the model are mandated by law to maintain an account for the “cash float” ensuring that a regulated financial
institution holds the physical cash backing the issued e-money. Integration of Mobile Money Service Providers
would necessitate an open business model that encompasses all stakeholders, promotes interoperability, and
increases the potential customer base. To achieve this, there is a need to cultivate institutional relationships that
encourage cooperation. It should also establish a legal framework that does not stifle innovation but ensures safety
for customers’ e-money