Tanzania’s Digital Payments Surge: A $11.6 Billion Milestone
Tanzania’s digital payments sector witnessed a remarkable expansion in 2024, with real-time transactions more than doubling in value. The Bank of Tanzania (BoT) reported that the country’s national switch processed transactions worth an impressive TSh29.9 trillion, equivalent to $11.6 billion, by December. This signifies a significant leap from the TSh12.5 trillion ($4.9 billion) recorded in the previous year, highlighting the rapid adoption of digital financial solutions in the East African nation.
TIPS: Powering Tanzania’s Digital Finance Revolution
Central to this growth is the Tanzania Instant Payment System (TIPS), launched in 2020. TIPS serves as a crucial platform, enabling instantaneous money transfers across various financial institutions, including banks, mobile money wallets, and licensed entities. This system is instrumental in unifying Tanzania’s payment landscape. In 2024, TIPS facilitated a substantial 454 million transactions, nearly doubling the 236 million transactions recorded in 2023. This surge coincides with an increase in participating institutions, which reached 46 in the same year. The BoT emphasizes the importance of TIPS as a central element of Tanzania’s digital financial infrastructure, facilitating instant payments and fostering financial inclusion, especially within marginalized communities. This approach contrasts with Kenya’s market-driven model, where platforms such as M-Pesa have a dominant role.
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