By KT Reporter
Boda boda riders have expressed mixed feelings about the growing push for digital payments, saying while mobile money is convenient, transaction costs—especially withdrawal charges—remain a major concern. They also point out that cash payments, though still widely preferred, come with their own operational challenges. Riders say passengers often pay with large notes, forcing them to spend time looking for change, which delays trips and sometimes leads to lost customers.
Because of these challenges, riders say merchant codes offer a more practical alternative. They argue that using merchant payments allows customers to pay directly without extra charges, while also helping riders avoid the inconvenience of handling cash and change. The shift towards merchant codes is part of a broader effort by MTN Mobile Money to deepen financial inclusion and promote a cashless economy among informal transport workers.
A new partnership between MTN Mobile Money and Stabex International Uganda has been launched to encourage boda boda riders to adopt cashless payments through merchant codes. Under the initiative, riders will be registered as MoMoPay merchants, enabling passengers to pay directly using merchant numbers instead of sending money to personal wallets.
To encourage uptake, the programme offers cashback incentives to riders who accumulate at least UGX 20,000 in daily cashless transactions. Riders will also enjoy free transactions when spending from their merchant wallets. The campaign, dubbed “Boda Boda Win Kafuta,” also comes at a time when fuel prices and supply pressures are affecting transport operators across the country.
Some boda boda leaders have welcomed the initiative, saying it could improve earnings and reduce financial friction in daily operations. Mbidde Ashraf, former Kampala District Chairperson of the New Generation United Boda Boda Foundation Uganda, and Patrick Mutebi said the cashback incentives make the system attractive compared to traditional mobile money use. They also noted that passengers often exploit riders who lack change, forcing unnecessary delays that affect business.
Stabex International Uganda says the initiative is part of efforts to help riders manage fuel costs and improve financial discipline amid global market fluctuations. Biniface Kipchirchir said the programme is designed to help boda boda operators better manage cash flow and reduce losses associated with handling physical cash.He added that the transport sector remains critical to mobility and economic activity, and must be supported through innovative solutions during periods of economic pressure.
According to Viola Namuyaba, the initiative is aimed at onboarding boda boda riders as formal merchants within the digital payment system. She said the system is designed to be simple, allowing riders to register themselves and operate without additional costs to either riders or passengers.“BodaBoda Win Kafuta makes it easy and free for riders to register, receive payments, and access their money, encouraging consistent use of digital payments,” Namuyaba said.
She added that riders will be able to access earnings easily while benefiting from increased digital transactions. MTN Mobile Money says the initiative reflects a shift in focus from serving only individual users to recognising business customers as a key part of the ecosystem.
“Boda bodas in Uganda are not just transport—they are a powerful everyday business that cannot be ignored,” said Jemima Kariuki. She added that the tailored product aims to make work easier for riders, improve earnings, and support more efficient financial management.“This is about making their work easier, their earnings smarter, and their journeys more rewarding,” she said.
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