MTN hikes mobile money wallet to bank account transfer charges
MTN Uganda has increased the cost of transferring money from your MTN mobile money account to the bank account, casting a pessimistic future of mobile banking at a time when everyone is hoping for increased financial inclusion.
To transfer funds anywhere between Shs5,000 and Shs125,000, a user of MTN Mobile Money will be charged Shs1,500. Previously, it was Shs1,000.
This is higher than what one would need to send money to a fellow mobile money user within some figures in that range.
To transfer mobile money in the range of Shs5,000-60,000 using MTN to a colleague with an MTN SIM card, you’ll be charged Shs1,000.
To withdraw MTN mobile money, you’ll be charged Shs700-880 for an amount above Shs5,000 to Shs30,000. For a figure above Shs30,000 to Shs45,000, Shs1210 will be deducted from your mobile wallet and Shs1,500 for a figure between 45001 to Shs60000.
This is before the 0.5% mobile money tax is deducted.
The rates are slightly less when you withdraw the money from your mobile money account using an ATM card.
In all ranges of transactions, transferring money from your MTN mobile money account to the bank account is more expensive than transferring from MTN mobile money wallet to another MTN mobile money wallet.
For instance, you’ll be charged Shs2,000 to send money anywhere between Shs500,000 to Shs7,000,000 to any MTN mobile money user.
In the latest development, transferring money from your MTN mobile money account to the bank account will cost you Shs9,000 for a transfer between Shs500,001 to Shs1,000,000; Shs13,500 for 1,000,001 to Shs2,000,001; and Shs16500 for Shs2,000,001-5,000,000.
When you study the table below, you’ll realize that MTN tripled the charges in some of the ranges.
The reasons for MTN’s increase of rates was not included in the official statement announcing the new rates, but some observers have speculated that the telecom giant could be trying to discourage people from transferring money from mobile money accounts to bank accounts.
The rate of telecom mobile money wallets to bank account transfers is continuously growing, especially people making withdraws from bank accounts to their mobile wallets.