The impending catastrophe in the world of mobile money agents has taken some fresh fuel after telecom companies have cut agent commission for both airtime and mobile money services. The Uganda communications commission previously announced June 30th as the deadline for total ban of Airtime scratch cards on the Ugandan market, which were being sold by vendors and some mobile money agents who wanted to diversify their source of income.
Airtel Uganda has sent a message to all its agents informing them that it had revised agent commission for both deposits and withdrawals. The revisions will directly affect both Mobile money and airtime vendors who will be selling airtime electronically after June 30th, 2018.
Going by the message from Airtel Uganda, an agent will earn UGX 10,000 for a UGX 4 million or UGX 7 million deposit which is UGX 2,000 less than the current amount. Also, a vendor will earn UGX 15,000 for a withdrawal of an amount between UGX 4 million and UGX 7 million down from UGX 16,500. The revisions will affect all transactions starting from UGX 2,510 to UGX 7 million.
Mobile money has greatly changed the way people transact in Uganda and Airtel has also increased transaction amounts from UGX 5 million to UGX 7 million as they seek to match current economic fundamentals and catch up with MTN Uganda which recently revised it’s Mobile money payments rates.
Electronic airtime sales
Airtel Uganda has stipulated in the new commission structure that electronic airtime vendors will now get 5% commission down from 7%. This is in a quest to promote the sale of Airtime through mobile money as the June 30th total ban for scratch cards fast approaches.
“Following the UCC directive of zero scratch cards after June 30, we are promoting Airtel Money which serves both airtime top up and Airtel money transactions. The new commission structure has therefore been re-aligned to match commissions earned by Airtel money agents selling the same product (electronic airtime),” reads part of the email.
Other Telecoms?
MTN Uganda, which has over half of the total mobile money market in Uganda is expected to conduct a press briefing to communicate its new mobile money regime.
What it means to the agents.
The revisions come at a time when government has proposed a number of taxes in regard to mobile money services, a key transaction platform for a number of Ugandans. The agents that were seeing huge returns on mobile money dealings will see a huge decline in the commission they receive. This is a bad time to be a mobile money agent after MTN teased fully capable Mobile money ATM machines that will soon do the agent’s work, rendering them jobless.
