Bank of Uganda has exercised its authority under Section 13 of The National Payment Systems Act, 2020, to suspend the licenses of M/S Pivot Payments Limited. Effective immediately, this suspension comes as a response to concerns raised by the central bank regarding the company’s operations.
Pivot Payments Limited, a significant Pan African Payments Services Provider/Operator, has been a key player in the financial landscape, offering innovative payment solutions to individuals and businesses alike.
However, recent investigations by the Bank of Uganda have revealed actions that are deemed detrimental to the public interest and could potentially jeopardize the stability of the financial system.
The Central bank, in its statement released today, outlined the reasons for this drastic action. According to Section 13 of The National Payment Systems Act, 2020, licences can be suspended if the licensee:
- Fails to comply with any provisions of the Act or its regulations.
- Does not adhere to directives or guidelines issued by the central bank.
- Fails to commence operations of a payment system within six months of license issuance.
- Ceases to operate the payment system for more than thirty days.
- Obtains the license through false or misleading means.
- Operates a payment system that endangers financial stability.
- Conducts business in a manner detrimental to the public interest.
- Enters into insolvency proceedings.
The notice from the Bank of Uganda has instructed all existing Pivot Payments Limited wallet holders to report to the company’s premises. Here, they are requested to verify their wallet balances and update their Know Your Customer (KYC) information starting immediately.
Pivot Payments Limited has been known for its diverse offerings, including B2B solutions such as Bulk Payments and Bulk Collections from Mobile Money, Cards, and Bank Accounts. Their retail solution, the Pivotpay wallet, has garnered over 250,000 verified users across multiple African markets, providing a platform for safe, secure, and convenient transactions.
In response to these developments, we reached out to the Pivot Payments team for comment. While they declined to offer an immediate statement, they have indicated that a formal response will be released in due course.
