Tanzania has taken a significant step towards promoting digital payments by eliminating charges on card transactions at point-of-sale machines. The Bank of Tanzania (BOT) issued a notice stating that payments made using debit, credit, or prepaid cards will no longer incur any fees. This move is part of BOT’s efforts to encourage digital payments and drive the country towards a cash-lite economy.
Merchants in Tanzania have been warned not to violate this directive, with unspecified penalties in place for non-compliance. Governor Emmanuel Tutuba announced that the bank aims to promote the use of point-of-sale (POS) machines to facilitate and encourage digital transactions. This initiative is expected to offer benefits such as enhanced security, transparency, and convenience for both consumers and businesses.
Tanzania’s economy is on track for growth, with key sectors such as manufacturing, electricity, construction, tourism, trade, and financial services driving this positive outlook. The increasing popularity of digital payments is also contributing to the country’s economic development, with convenience and speed being key drivers of this trend.
According to Statista, the Tanzanian digital payments market is projected to reach US$4,430.00 million by 2024, with mobile POS payments emerging as the largest segment. While the country ranks eighth in terms of digital adoption, FinScope reports a significant rise in financial inclusion, with 76% of the population now formally included. This growth is attributed to the increase in mobile phone ownership and improved access to commercial banking services through digital channels.
Overall, Tanzania’s journey towards digital payments is gaining momentum, with expanding bank account ownership and smartphone usage serving as key indicators of future growth in the digital payment sector. By eliminating charges on card transactions, the country is taking a bold step towards creating a more efficient and inclusive financial ecosystem.
