Pegasus Technologies Limited, a locally founded Ugandan company, is now the fifth company to receive a license from the Bank of Uganda (BOU) to operate as a Payment Service Operator (PSO), having fulfilled the rigorous requirements of the National Payments Act, 2020 (NPS Act 2020) and the National Payments Regulations, 2021.
Pegasus is however the very first local fintech to get the prized license. The only other companies with this license are Airtel Mobile Commerce Uganda Limited, MTN Mobile Money Uganda Limited, and InterSwitch (of Nigerian origin).
This license allows the company to directly transfer funds, as well as integrate with platform owners such as banks, telecoms, utility companies, pay-tv, etc to deliver aggregation services.
Ronald Azairwe, the Managing Director, Pegasus Technologies, in an interview, said the license was an important milestone in the 14-year history of the business as well as proof of the company’s consistent commitment to creating fast, secure and simple payment solutions.
“We are proud that our technological, financial and governance credentials have met the stringent Central Bank licensing and certification requirements. We also pledge to consistently uphold the principles of quality improvement in digital payments and aggregation services,” he said.
Following the October 3rd, 2020 hack on Pegasus Technologies that saw banks and telecoms lose about $3.2 million, Pegasus MD is positive that it will not happen again.
“We are excited to now be operating in a regulated environment, by Bank of Uganda, under whose keen eye, innovation in the financial services industry in Uganda has thrived. Being a regulated entity guarantees our stakeholders that extra assurance and confidence that their digital transactions are safe (no money will be lost), reliable (swift and available all the time), and convenient. All these combined, translate into lowered consolidated costs of financial services as well as enhanced financial inclusion for all,” said Mr. Azairwe.
Along with the PSO license, Pegasus Technologies also holds Level 1 and Level 2 certifications from the National Information Technology Authority-Uganda (NITA-U) as well as the Payments Card Industry Data Security Standard (PCI-DSS) certificate.
“The PCI-DSS certificate means that we meet all the requirements and security standards, within our network, applications, and governance procedures, to operate (VISA/Mastercard) card transactions. This certification allows Pegasus Technologies to design and operate applications that handle e-commerce and other VISA/Mastercard payments,” Azairwe told CEO East Africa Magazine.
“The NITA-U Level 1 and 2 certificate means that we have met the requirements of the Data Protection and Privacy Act 2019 and the Electronic Transactions Act 2011. These certifications allow Pegasus Technologies Limited to publish software, do mobile money aggregation services, build web portals, data processing, and other general programming activities, all in conformity with the NITA-U regulations,” he said.
Mr. Azairwe said that all these milestones, as well as peer and regulator affirmations, are timely both, for the company as well as the fintech industry, especially as digital payments take root in Uganda and the African continent. This is being driven by advancement in technology, the proliferation of smart/feature phones, as well as cheaper and easier internet, improved literacy levels, and the rise of local technopreneurs such as Pegasus. He also said that the Covid-19 pandemic has necessitated and accelerated the need for digital payments, hence presenting a positive future for fintech especially in the developing world.
“All these present a very big opportunity to finally substitute cash transactions (which have many attendant problems) with digital transactions – the latter being superior, not just in eliminating the risk and cumbersomeness of cash transactions but also in offering convenience in the way payments are made. The convenience of paying utilities digitally (be it an electricity token or government tax) and sending money to one’s beneficiaries, at any time of the day or night, without needing to go to an office or meet people in person, cannot be overstated,” said the technopreneur.
“Pursuing and attaining these specialty certifications positions us but also reflects our commitment to providing the highest levels of quality services to our partners and the same high level of quality in our business practices. It also demonstrates our expertise in managing digital payments facilitation,” Mr. Azairwe said.