THE Central Bank BoT is updating its Tanzania Instant Payment System (TIPS) to eliminate payment aggregators and enable mobile money transactions be made free.
That was said here yesterday by Bank of Tanzania Governor Professor Florens Luoga, adding that bank was working on a new system that would remove the current multiple aggregators, who are forcing high charges to facilitate mobile payments.
“I can confirm that there is more than one aggregator in sending and receiving money. The aggregator is a middle-man working in the transfer of the monies and these will be eliminated by adopting a national switch system,” he added.
He further said that the system is being built within the TIPS and targets to remove all charges imposed in sending or receiving mobile money.
On her part, Tanzania Organisation for Media Information and Digital Literacy (TOMIDL) Senior Programme Manager Ms Grace Semageni said that many countries globally have made mobile transaction free to boost e-commerce and improve financial inclusion.
“The only challenge in Tanzania is that now you cannot wire money to a trader through your easy mobile banking unless you add withdrawal charges …. This is in additional to charges that you will have to make in wiring the money,” she said.
She said she received the news with utmost relief in addition to her organisation having been championing for digital inclusion to support the country’s industrial drive, adding: “This is a revolution,” The Bank of Tanzania launched the single platform that links different payment systems as it seeks to ensure payments are easy to make, fast and cost-effective.The system is scheduled to take effect in June 2020.
