How do people in Uganda pay online?
Most Ugandans pay with mobile money. The Uganda Communications Commission’s report for the first quarter of 2026, as reported by Business Times Uganda, counted 58.7 million registered mobile money accounts, of which 36.7 million had been used in the previous 90 days.
MTN MoMo is the largest network. MTN Uganda’s 2025 annual report shows 14.7 million MoMo users at the end of 2025, up 6.5%, with 5.0 billion transactions worth UGX 195.5 trillion in the year, 241,100 active agents and more than 114,800 active merchants. Airtel Money is the second network. Airtel Africa reports Uganda within its East Africa region, which had 40.9 million mobile money customers across six countries in the year to March 2026.
With mobile money, the merchant sends a payment request and the customer approves it on their phone with their PIN, so the result arrives a little after the order is placed.
Cards are a smaller channel, and wallets are bridging the gap. In February 2025 MTN relaunched its MoMo virtual card with Mastercard, Diamond Trust Bank and Network International, so customers can pay online straight from their MoMo wallet. MTN says over 250,000 virtual cards have been activated and about 100,000 users transact with them. Visa and Mastercard cards from Ugandan and foreign banks cover the rest.
What rules shape online payments in Uganda?
Foreign sellers of electronic services charge VAT. VAT is 18% on most goods and services. PwC notes that taxable persons supplying remote or electronic services to non-taxable persons in Uganda must register for VAT and file quarterly returns, and may pay the tax in US dollars. For resident businesses the annual registration threshold is UGX 300 million from 1 July 2026. Imported goods pay customs duty of 0% to 60% under the East African Community common external tariff, and cash withdrawals from mobile money carry a 0.5% excise duty.
Online shoppers can cancel within seven days. Under section 25 of the Electronic Transactions Act 2011, a consumer may cancel an electronic transaction within seven days after receiving the goods or services, or after concluding the agreement. The consumer can be charged only the direct cost of returning the goods, and a consumer who has paid is entitled to a full refund within thirty days of cancelling. Under section 27, the supplier must fulfil an order within thirty days unless agreed otherwise, and must refund within thirty days if the goods are unavailable.
Data protection reaches foreign companies. The Personal Data Protection Office decided on 18 July 2025 that Google had to register under the Data Protection and Privacy Act, Cap. 97, because the registration duty covers any entity handling personal data of Ugandan citizens, including those established abroad. Registration is renewed every year. Personal data can be stored or processed outside Uganda only where the destination offers protection at least equivalent to Ugandan law, or with the data subject’s consent.
How would Omno route payments in Uganda?
A merchant would connect once and set routing rules per method, currency and customer group. In Uganda:
- MTN MoMo pay-ins would go to a provider that holds an MTN MoMo collection connection, with the order pending until the customer approves on their phone and the result arrives by webhook.
- Airtel Money pay-ins would go to a provider connected to Airtel Money, with the same pending state, so the hosted checkout can offer both networks side by side.
- Card pay-ins, including the MoMo virtual card, can be routed by BIN, with cascading to the next provider in the rule if one is unavailable or rejects the request.
Webhooks would report the final status of every payment, and the routing-decision log would show which provider handled each payment and why.
What should merchants plan for?
Plan for both mobile money networks. MTN MoMo is the largest, but Airtel Money customers need a way to pay too, and a checkout with only one network turns some shoppers away.
Plan for asynchronous results. A mobile money request can be ignored or declined on the phone, so orders need a pending state and webhook confirmation before shipping.
Plan for whole-shilling amounts. The Ugandan shilling has no minor unit under ISO 4217, so amounts are sent as whole numbers.
Plan for tax and data registration. Foreign sellers of electronic services register for 18% VAT, and any business handling Ugandan customers’ data registers with the Personal Data Protection Office.