Mobile transactions hit Sh18tr amid surge in digital payments

According to the Bank of Tanzania’s Monetary Policy Report for July 2025, the continued growth underscores the country’s accelerating digital transformation and rising public confidence in electronic payment platforms.

“This performance is being driven by efficiency, convenience and reduced transaction costs. Our payment systems have created a user-friendly environment,” BoT governor Emmanuel Tutuba said.

The growth of mobile transactions reflects wider trends within the digital payment ecosystem. The report indicates that transaction volumes rose across all major platforms.

Notably, shilling-denominated transactions cleared through the Tanzania Interbank Settlement System (TISS) climbed to Sh23.8 trillion, up from Sh19.8 trillion in April 2024, an increase of 20.2 percent.

Similarly, transactions through the Tanzania Instant Payment System (TIPS) nearly doubled, rising by 94.7 percent from Sh1.9 trillion to Sh3.7 trillion.

Speaking to The Citizen, Mr Tutuba said the rise in digital transactions is being supported by increased investment in infrastructure, higher smartphone penetration, and innovations such as QR code payments, wallet integrations, and more intuitive mobile banking apps.

He noted that the central bank’s efforts to enhance financial inclusion are also evident in recent regulatory reforms.

One such initiative is a directive to commercial banks to cap transfer fees at Sh5,000 for bank-to-wallet and interbank transfers.

“This reform improves accessibility and reduces cost-related barriers, especially for low-income users,” Mr Tutuba said.

The digital shift has also attracted international players. Global payments provider Visa has opened a local office and begun lowering transaction fees, moves expected to intensify competition with mobile money providers and conventional banks, ultimately benefiting consumers.

Mr Tutuba credited Tanzania’s political and economic stability as a key driver of digital financial growth.

“A stable economy and peaceful environment are essential foundations. They build trust and attract investment into payment systems and other financial innovations.”

The central bank attributes the overall increase in digital transactions to targeted efforts aimed at removing obstacles to digital financial service adoption.

These include the revision of fees on interoperable services via TIPS, which allows seamless payments across different platforms.

The surge in mobile financial activity reflects more than just economic data—it marks a shift in how Tanzanians manage money.

From settling utility bills and receiving agricultural payments to running businesses, digital platforms are becoming a critical tool, especially in underserved areas with limited access to traditional banking.

With robust policy backing, a competitive digital finance landscape, and expanding infrastructure, Tanzania is positioning itself as a regional leader in digital payments and financial inclusion in East Africa.