Pivot Payments Back in Business After Bank of Uganda Lifts License Suspension

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Pivot Payments, a Ugandan financial technology company, is set to resume operations on December 20, 2024, following the reinstatement of its Payment Service Provider (PSP) and Electronic Money Issuer (EMI) licenses by the Bank of Uganda (BoU).

The licenses were suspended on February 29, 2024, under Section 13 of the National Payment Systems Act, 2020, after the BoU identified operational deficiencies, including incomplete corporate governance structures and capital reserves falling below the required threshold.

Princess Shamirah Kimbugwe, the founder and director of Pivot Payments, acknowledged the regulatory concerns and commended the Bank of Uganda for its cooperative approach in resolving the issues. She described the process as a valuable learning experience for Uganda’s evolving financial technology sector.

“Having worked alongside the BOU team on corrective measures, I am happy to inform our partners, customers and the general public, that the BOU found it satisfactory to reinstate the licenses,” Kimbugwe said.

“The engagements have been a learning curve for both institutions and I believe the industry at large. The regulator’s unwavering risk-averse approach to the industry is aimed at consumer protection at the same time ensuring that institutions build sustainable and profitable businesses. It’s evident from their engagements that benchmarking on sister institutions within the region is fundamental to their objective of building a vibrant Payments industry to attract investment.” she added.

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Prior to the suspension, Pivot Payments had achieved notable success, registering over 100,000 customers and processing more than 1.4 million transactions worth approximately 70 billion Ugandan shillings. During the suspension period, the company ensured the security of customer data and systems.

As operations resume, Pivot Payments is seeking $10 million in additional capital for its expansion and strengthening efforts, pending board and regulatory approvals. The company has emphasized its commitment to rebuilding customer trust through enhanced engagement and operational improvements.

The Bank of Uganda highlighted that the suspension was a necessary measure to address risks that could jeopardize public interest and the stability of the financial sector.