Mobile money customers are unable to benefit from interest generated by funds held in trust accounts, as regulators maintain restrictions on such payouts.
The issue was raised by Senator Tony Sibandze during the Senate Portfolio Committee’s engagement with the ministry of finance over the ministry’s 2026/27 first quarter performance report. He was questioning why MoMo and e-Mali customers could not benefit from interest accrued on funds held within the mobile money system.
Sibandze asked why the institutions could not ‘use the accumulated interest to credit or reward their customers’, particularly when the underlying funds remain in the system and continue generating interest.
He also questioned the legal and regulatory basis for the Central Bank of Eswatini (CBE)’s control over the interest earned and asked who ultimately benefits from it.
The issue comes as the country’s payment landscape continues to move towards digital transactions. The CBE’s Financial Stability Review for June 2025 reported that consumer preferences were shifting towards cashless payments, with digital channels such as internet and mobile banking becoming increasingly important. The report said the use of electronic payment systems continued to increase during the year ended June 2025, driven partly by economic recovery, competition from new electronic money players and demand for convenience and speed.
Mobile money transaction volumes increased by 17.4% to 12.9 million during the period, while the value of transactions rose by 9.1% to E2.8 billion. Registered customers increased by 14.2% to 742 379, while funds held in safeguarded trust accounts, known as escrow balances, grew by 29.9% to E354.9 million, according to the CBE report.
Responding to Sibandze, the ministry said the CBE restricts mobile money service providers (MMSPs) from using trust account interest to reward customers because e-wallets are legally classified as non-interest-bearing payment instruments rather than formal bank savings.
“Distributing this interest would blur regulatory boundaries, transforming telecommunication-led platforms into unlicensed commercial banks,” explained the ministry.
Furthermore, it clarified that the interest is not held at the CBE, but sits in MMSP accounts maintained with respective commercial banks.
Under the 2019 Practice Note for mobile money service providers, MMSPs are required to maintain trust accounts for all mobile money funds. Interest earned on balances in these accounts is not to benefit or be paid to the MMSP and must be recorded separately. Any proposed use of the interest must be submitted to and approved by the CBE.
The ministry said the CBE is currently developing a framework and guidelines for the use of interest accrued on mobile money trust accounts, including reviewing how other countries regulate such funds.
It further said accumulated interest can help offset administrative, custody and banking costs incurred in maintaining the national payment infrastructure, while noting that in some jurisdictions, such funds are directed towards financial literacy, consumer education or national development projects.
Currently, according to FinMark Trust, the regional trend is that SADC regulators are increasingly moving towards a model where trust account interest is not treated as unrestricted provider income. Instead, interest must be separately accounted for and its use approved by regulators, with growing emphasis on customer benefit, lower transaction costs, financial education or strengthening digital payment systems.
Country Current approach to interest earned on mobile-money trust accounts
| Country | Current approach to interest earned on mobile-money trust accounts |
|---|---|
| Eswatini | Interest is not paid directly to customers. Mobile money providers cannot use accrued interest to reward customers unless approved by the Central Bank of Eswatini. The interest must be recorded separately, with any proposed use subject to regulatory approval. |
| South Africa | Mobile money is regulated within the broader payments framework. There is no general practice of paying interest directly to mobile money users, as wallets are treated as payment instruments rather than savings accounts. Customer funds must be safeguarded through regulated arrangements. |
| Namibia | Mobile money providers may earn interest on pooled trust funds, but the interest can only be withdrawn or used for fees and administration if customer e-money liabilities remain fully covered. The approach allows controlled use while protecting customers. |
| Malawi | Interest earned on trust account balances cannot benefit the mobile money provider. The regulatory approach prevents providers from treating the interest as income, while allowing the possibility of customer-focused use. |
| Mauritius | Interest earned on trust account balances is intended to benefit customers and should be paid back to them in a form determined by the service provider. The interest cannot be retained by the mobile money provider. |
