– Advertisement –
Bank of Uganda (BoU) announced on Thursday, February 29, 2024, that it had suspended the operations of M/s Pivot Payments Limited, a company specializing in money remittances from banks to digital wallets. In a statement issued by BoU’s deputy governor, Micheal Atingi-Ego, it was revealed that the suspension came under the authority granted by section 13 of the National Payment Systems Act, 2020.
According to the statement, BoU’s oversight revealed that M/s Pivot Payments Limited was conducting its operations in a manner detrimental to the public interest and posed risks to the stability of the financial system. As a result, the central bank deemed it necessary to suspend the company’s license as a payment service provider and a payment systems operator.
Atingi-Ego directed all existing M/s Pivot Payments Limited wallet holders to report to the company’s premises located at Plot 17, Golf Course Road, Kololo, Kampala, Uganda, to verify their wallet balances and update their Know Your Customer (KYC) information. He emphasized the urgency of this directive, effective immediately from February 29, 2024.
Furthermore, Atingi-Ego urged individuals with any queries or concerns to reach out to the Office of the Director, National Payment Systems Department at BoU for assistance. He reassured the public of BoU’s commitment to providing oversight and protection of payment systems in Uganda.
– Advertisement –
Despite attempts to obtain a comment from Shamirah Kimbugwe, Managing Director of Pivot Payments Limited, no response was received by the time of publication. Consequently, the exact number of individuals affected by the suspension remains unclear.
Pivot Payments Limited, established to address remittance challenges encountered by Ugandan migrant workers, had garnered significant user numbers since its inception. In an interview with New Vision in October 2022, Kimbugwe highlighted the company’s mission to alleviate the financial burdens faced by migrant workers, with close to 170,000 users and transactions exceeding $14 million (approximately 50 billion Ugandan shillings) processed through the platform.
The company aimed to reduce the high costs associated with money transfers and combat cases of fraud and misappropriation often experienced by migrant workers. Through its online banking system, Pivot Payments offered users the convenience of managing their finances directly, without intermediaries, facilitating savings, bill payments, and fund transfers.
On its website, Pivot Payments Limited asserts its status as a Pan African Payments Services Provider / Operator, offering payment solutions to individuals and businesses across the continent. However, the suspension by Bank of Uganda underscores the challenges encountered by the company, signaling a need for regulatory scrutiny and consumer protection in the financial services sector.
Related
– Advertisement –
