Banks lead in electronic cards application

SUNDAY NEWS Reporter

WHILE evidence shows that credit card penetration in the continent is a paltry 5 per cent, local banking industry is spearheading the use of electronic cards, even to the lowest cadres of the economic ladder.

These dismal statistics are confirmed by a survey conducted by Moody’s Analytics in March 2016 that revealed that Africa recorded the lowest economic impact of electronic payment globally.

The report, nevertheless, advises that if there was only 1 per cent increase in usage of electronic payments, it could produce about $104 billion in consumption.

A look at the Exim Bank Tanzania, for instance, quickly depicts a financial institution whose transformative algorithm in the payment system is revolutionising the overall payment ecosystem in the country.

Besides being the first bankto introduce credit cards (Master Cards, Visa Cards), ATMS and mobile applications for Smartphones in the country, Exim Bank celebrated 19 years of existence in Tanzania with an additional innovational product, the TANAPA electronic payment card.

Commenting on the groundbreaking innovation, Exim Bank’s Cards and Alternative Delivery Channels Senior Manager, Manfredy Kayala says the system would assure local, regional and international tourists of safety of their money since walking with cash could expose them to risks of theft and loss.

Mr Kayala said that the Exim TANAPA Card joins Exim Bank’s array of electronic cards that offer Prepaid, Debit, Topup (Recharge) and other services to local and international consumers who are both account and nonaccount holders.

According to Bank of Tanzania (BoT) in its report released between January and June 2013, the volume of transactions made through electronic cards rose from 63,083bn/- in 2006 to 795,849bn/- in 2013, an 8 per cent increase within the period.

The report, entitled: “Payment System Statistics- Electronic Cards-Based Systems” further has it that the number of electronic payment transaction machines rose from 770 in 2005 to 2,548 in June 2013, while the electronic payments transaction value reported a surge from a relatively measly 54.45bn/- to 144.94bn/- in June 2013.

Historically, the entry fee to the TANAPA gates was through cash or cheque payment and TANAPA had major difficulties in transporting cash from remote gates within the national park to their head office.

The entire process was handled manually which was time consuming and prone to fraud and error.

Exim Bank introduced Tanapa Debit and prepaid cards to allow electronic entry fee payments at TANAPA gates in 2007 using Point of Sales (POS) machines. Payment are made using the card electronically and there is no manual intervention and this simplifies the collection and reconciliation process and improves revenue collections.

The card is also issued in two currencies USD and Tanzanian Shillings allowing different stakeholders to pay in their currency of preference.

Mr Nicholas Ayieko, a Hotel Manager who also offers tour guide services at Mikumi National Park in Morogoro Region said that besides using it himself, the card has really simplified his customers’ payment transactions at the park.

‘Previously,’ says Ayieko, “We were using hard cash to pay for a visit to the national park, a system that was both tedious and time-wasting.

However, with the introduction of TANAPA cards, my customers who are local and international tourists are happy because the cards are safe, convenient, valuable and time-saving.”