Uganda’s digital payments surged 28 percent in 2025, reaching 366 trillion shillings, as the Bank of Uganda and financial institutions continue to drive secure, inclusive, and interoperable digital commerce across the country.

The growth, highlighted by Deputy Governor Prof. Augustus Nuwagaba at the Bank CEOs’ Dinner hosted by Visa East Africa in Kampala, reflects Uganda’s sustained shift from cash and cheques to electronic payments.

“These trends show the impact of collective efforts to promote digital financial services as part of the national financial inclusion agenda,” Prof. Nuwagaba said.

Strong Uptake in Digital Transactions

Electronic money transaction values rose from 285.9 trillion shillings in 2024 to 366 trillion shillings in 2025, while transaction volumes increased by 17.3 percent from 7.8 billion to 9.1 billion.

On the wholesale side, activity on the Uganda National Interbank Settlement System climbed 15.1 percent to 1,025.7 trillion shillings. Cheque payments continued to decline, falling 4.3 percent to 4.5 trillion shillings, as part of policy measures encouraging wider digital adoption.

Uganda’s Financial Inclusion Index reached 72 percent, while the E-Payments Index rose to 38 percent by December 2025, signaling broader adoption of formal digital financial services.

According to the 2025 World Bank Findex Report, access to formal financial services in Uganda increased from 66 percent in 2021 to 73 percent in 2024, largely driven by mobile money uptake.

Central Bank Digital Currency and Fintech Initiatives

Prof. Nuwagaba outlined ongoing initiatives to strengthen Uganda’s digital ecosystem:

- Feasibility study for a Central Bank Digital Currency (CBDC)

- Analysis of blockchain and virtual asset risks

- Development of a regulatory framework for virtual assets

- End-of-term evaluation of the National E-Payments Strategy 2021–2026 and planning for the Second National E-Payments Strategy (2026–2031)

The new strategy will focus on digital infrastructure, broader stakeholder engagement, robust monitoring, and adequate resourcing to support electronic payment growth.

Strengthening Interoperability and Cybersecurity

The central bank is also addressing structural challenges to payments interoperability:

- Reviewing the National Payments Systems Act and regulatory sandbox

- Implementing anti-fraud measures via the Financial Sector Anti-Fraud Consortium

- Engaging stakeholders on the National Payments Switch to connect banks, fintechs, and mobile money operators

Prof. Nuwagaba emphasized investment in national digital infrastructure, such as the national switch, digital ID systems, and cyber resilience platforms, alongside public-private partnerships to enhance digital literacy and consumer protection.

Collaboration with Visa and Industry Partners

Visa has partnered with financial institutions in Uganda to promote:

- Contactless payments and virtual cards

- Loyalty programs rewarding card usage

- AI-driven fraud detection and real-time analytics

- Training and capacity building through Visa programs

Future collaborations may leverage the regulatory sandbox, support anti-fraud initiatives, address merchant surcharges, and expand financial literacy efforts, particularly for women and youth.

Implications for Uganda and East Africa

Uganda’s strong digital payment growth positions the country as a leader in East Africa’s fintech ecosystem. Analysts note that continued adoption of secure and interoperable digital systems can:

- Expand financial inclusion

- Enhance consumer trust

- Drive economic activity

- Support regional integration of payments

With coordinated public-private initiatives, Uganda is set to accelerate its transition to a modern digital economy while maintaining cybersecurity and regulatory oversight.