THE interoperability of mobile financial services has contributed to the growth in volume and value of mobile money transactions registered in 2018/19 financial year.
Mobile money transactions in the period under review grew by 75 percent 43 percent in volume and value, respectively, the Bank of Tanzania (BoT) said in its 2018/19 annual report.
The volume of transactions moved was 1,757,975 down from 1,925,569 in the previous year, whereas the value increased to 183.3tri/-from 177.1tri/-.
The number of active accounts in mobile money reached 22.3 million at the end of June 2019 from 20.5 million at the end of June 2018, with more than 532,474 agents.
To enhance and broaden interoperability, the Bank was working with stakeholders to facilitate interoperability at the level of agents of mobile financial services.
The use of mobile money services contributed to increase of the country’s financial inclusion, which the central bank internal study shows it crossed 70 per cent from 65 per cent in the last two years.
The Development of the Tanzania Instant Payment System (TIPS) commenced in January last year to address limitations of current service offerings with regard to interoperability by enabling individuals, businesses and government to be able to transact with each other, regardless of service provider or sector, bank or non-bank payment service providers.
This modern technology which will facilitate instant payments, easy connections by multiple participating institutions and ultra-low-cost payments.
It will also provide a single national switch that will facilitate BoT oversight supervision of payment systems, improve financial inclusion through usage of electronic payments platforms and promote cash-lite economy.
TIPS is expected to be operational in 2019/20. The electronic payment system has enhanced regulatory capabilities by providing transparency and enabling the bank to better perform its oversight responsibilities while ensuring the system safety.
During the period, four new payment system licenses were issued to commercial banks, making 43 licenses.
The number of non-bank institutions licensed to provide payment system reached 15 at the end of June 2019 from 13 at the end of June 2018.
In terms of payments instruments and products, the use of Quick Response (QR) code technology for merchant payments boosted usage of mobile money in the market.
According to BoT, two participants were registered and added to TISS namely China Dasheng Bank and Yetu Microfinance Bank, making the number of participants to 52.