Pivot Payments, a prominent Ugandan fintech company, is set to resume operations on December 20, 2024. This development follows the lifting of the suspension imposed by the Bank of Uganda on February 29, 2024.

The suspension was a result of identified operational gaps, including incomplete corporate governance and insufficient capital reserves.

However, through collaborative efforts with the Bank of Uganda, Pivot Payments has addressed these issues and is now in position to continue its mission of providing innovative financial solutions.

A Learning Experience and a Path Forward

Founder Princess Shamirah Kimbugwe acknowledged the regulatory concerns and expressed gratitude for the Bank of Uganda’s supportive approach. She viewed the suspension as a valuable learning experience for the company and the broader fintech sector.

Prioritising Customer Trust and Data Security

Kimbugwe reassured customers that their data and systems remained secure throughout the suspension period. The company is now focused on rebuilding trust and re-engaging with its customer base.

Prior to the suspension, Pivot Payments had gained a significant user base of over 100,000 customers and processed over 1.4 million transactions, totaling approximately 70 billion Ugandan shillings.

With the lifting of the suspension, the company is well-positioned to resume its growth trajectory and continue providing innovative financial services to the Ugandan market.

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A Learning Curve for All

The regulatory engagement with Pivot Payments has served as a valuable learning experience for both the company and the regulator. The Bank of Uganda’s strict approach, while aimed at protecting consumers, has also highlighted the need for fintech companies to operate within a robust regulatory framework.

Ensuring Customer Safety

Despite the regulatory challenges, Pivot Payments has remained committed to safeguarding its customers’ interests. The company has assured its users that their data and savings have remained secure throughout this period.

As the company moves forward, it plans to prioritise customer engagement and trust-building to attract a wider user base.

A Road to Recovery

To strengthen its financial position and comply with regulatory requirements, Pivot Payments is seeking an additional $10 million in recapitalization. The company is currently awaiting the Bank of Uganda’s approval of its board to proceed with this fundraising effort.

Pivot Payments Expands Across East Africa: Operations in Kenya and Uganda

Pivot Payments has been making significant strides in East Africa, with notable operations in both Kenya and Uganda. In Kenya, Pivot Payments has established itself as a key player in the financial technology sector, providing innovative payment solutions to businesses and individuals alike.

The company’s success has been mirrored in Uganda, where Pivot Payments Uganda has been enhancing the local payment landscape with reliable and secure services.

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For those seeking to reach their offices in Kenya, the Pivot Payments Kenya address serves as a central hub for all operations, ensuring seamless communication and service delivery across the region.

The Broader Fintech Landscape

While Pivot Payments’ case is unique, it reflects a broader trend in the fintech industry. The rapid growth of fintech companies has led to increased regulatory scrutiny, as regulators strive to balance innovation with consumer protection.

The closure of Mercantile Credit Bank Limited, another financial institution, highlights the importance of adhering to regulatory standards. As the fintech industry continues to evolve, it is essential for companies to navigate the complex regulatory landscape and maintain a strong focus on compliance.