MTN Uganda enters the e-commerce landscape with its new platform, Market by MoMo.
MTN is expanding its suite of services with the introduction of an e-commerce platform dubbed “Market by MoMo,” starting with Uganda. Starting in November, users of the open platform will be allowed to shop for groceries, electronics, and beauty products, paying for them using MTN’s mobile money. MTN hopes to ease online shopping and delivery, thereby competing with the already existing players such as Jumia. The company, however, awaits a courier license from the relevant authorities to operate deliveries. The platform shall hold the money in deposits until customers confirm receipt of goods to their satisfaction.
We are trying to build a one-stop center. From voice, SMS, data, mobile money, and now shopping,” said Brian Mutungi, MTN Market by MoMo country manager.
It will, therefore, be operating under Group FinCommerce, a subsidiary of MTN Group Fintech, after the Bank of Uganda guided that MTN’s mobile money license does not permit marketplace operations.
Telecom giant MTN Uganda is about to break into the country’s e-commerce sector with an online shopping platform called Market by MoMo.
What you need to know:
MTN’s foray into the e-commerce space follows its exit at group level about fours years ago from Jumia with more 18 per cent shares.
It will go live next month and enable customers to purchase groceries, appliances, health and beauty products, among others, and pay for them using MTN’s mobile money network.
MTN’s venture into the e-commerce space comes four years after it exited Jumia, Africa’s largest e-commerce business, where it had an 18.9% stake.
The move by MTN is likely to rattle the dominance of Jumia in Uganda’s e-commerce market, where existing platforms have largely been concentrated within urban centers.
However, Uganda Communications Commission warned MTN to get the required courier licenses before rolling out their door-to-door delivery services.
Market by MoMo will offer prepaid orders, holding payment until products are delivered and verified by customers.
