Tanzania’s mobile pay transactions hit $11.1bn

Bank of Tanzania and a graphic of the value of mobile payment transactions.  NATION MEDIA GROUP

By David Mugwe

In Summary

• The value of mobile payment transactions rose by 212.9 per cent to Tsh17.4 trillion ($11.1 billion) for year ended December 2012 from Tsh5.56 trillion ($3.5 billion) for the year ended December 2011
• As at the end of June this year, the value of mobile payment transactions stood at Tsh12.38 trillion ($7.73 billion) which is 71 per cent of what was transacted in the twelve months of last year, an indication that full year values transacted could hit a new high
• Vodacom, Airtel, MIC, Zantel registered 26.8 per cent more mobile money customers during 2012 to 26.9 million from 21.2million and as at the end of June this year, the number of mobile money registered customers had risen by a further 8.39 per cent to 29.1 million

The value of mobile payment transactions jumped more than three times in the twelve month period ended December last year as the four main providers registered more customers and partnered with financial institutions which are offering value added services.

Fresh data from Bank of Tanzania (BoT) shows that the value of mobile payment transactions rose by 212.9 per cent to Tsh17.4 trillion ($11.1 billion) for year ended December 2012 from Tsh5.56 trillion ($3.5 billion) for the year ended December 2011.

As at the end of June this year, the value of mobile payment transactions stood at Tsh12.38 trillion ($7.73 billion) which is 71 per cent of what was transacted in the twelve months of last year, an indication that full year values transacted could hit a new high.

“The increase was due to increased use of mobile payment services in payment of various services including utility bills. Further, several banking institutions have formed partnership with mobile network operators which facilitates customers transactions,” said the regulator in its latest Banking Supervision report.

Vodacom operates the M-Pesa platform, Airtel operates a platform dubbed Airtel Money, MIC operates the Tigo Pesa platform and Zantel operates Ezypesa.

The four service providers registered 26.8 per cent more mobile money customers during the year to 26.9 million from 21.2million and as at the end of June this year, the number of mobile money registered customers had risen by a further 8.39 per cent to 29.1 million (See graphic).

However, only 29.3 per cent or 7.87 million and 31.77 per cent or 9.25 million of the registered customers as at the end of last year and as the end of June this year were active on the mobile money platforms (See graphic).

The use of mobile money platforms has increased exponentially over the past five years in each of the East African Community countries particularly where banking services are not readily available.

Mobile money platforms offer instant money transfer using phones which helps cut the cost and saves time as opposed to physically transporting money.

Amana Bank, Azania Bank, Barclays, Citibank, CRDB Plc, NBC Limited, Standard Chartered, Stanbic Bank, Bank M, UBA and FBME were providing internet banking services whose volume increased by 47.4 per cent to Tsh17.75 billion ($11.08 million) as at the end of December 2012 from Tsh12.04 billion ($7.6 million) as at the end of December 2011.

“The growth was contributed by increased number of banking institutions offering internet banking from six in 2011 to eleven in 2012,” said BoT in the banking supervision report.

BoT said that as at the end of last year, nine banks; NMB, CRDB Bank, Tanzania Postal Bank, DCB Commercial Bank, Barclays, Standard Chartered, Akiba Commercial Bank, Exim Bank and Amana Bank were offering mobile banking services through short message service (SMS).

The value of these mobile banking transactions increased by 34.84 per cent to Tsh302.14 million ($192,247) during the year ended December last year from Tsh224.07 million ($143,024) during the year ended December 2011.