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Use of digital payments in Uganda increase – BOU

By Our Reporter

The use of digital payments in Uganda significantly increased in the year to June 2019 following efforts from the government, commercial banks and Bank of Uganda (BOU) to promote digital payments as an alternative to cash; and customers demand for fast, convenient and efficient payments, according to the latest Financial Stability Report June 2019.

The total number of active debit cards issued by banks as at June 2019 grew by 19.3 percent to 2.4 million. The volume of payments made by debit cards stood at 2.8 million an equivalent in value of USh.650.4 billion.

“The number of credit cards continued to increase but their use remains relatively low in comparison to debit cards partly attributed to the limited number of merchants and outlets that accept credit cards,” the report released Tuesday says.

Risks to Uganda’s macro-financial environment were minimal during the year to June 2019. As such, GDP growth is projected at 6 percent in the year to June 2020, supported by accommodative monetary policy, expansionary fiscal policy and increased public infrastructure investment, the report says.

“The downside risks to this outlook include potential shocks from the external sector in the form of lower export demand weighing down on financial flows and possibly igniting volatility in the domestic foreign exchange market. In addition, trends in the global financial markets could result in higher interest rates and increase the costs for external financing,” it says.

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