Tanzania has cancelled all charges on card payments to boost digital transactions.
Tanzaniaâs apex bank, Bank of Tanzania (BOT), announced the development, stating that payments made using debit, credit, or prepaid cards at point-of-sale (PoS) machines will no longer attract charges.
The bank warned merchants not to violate the order, with unspecified penalties for violators.
According to a report by East Africa, the move is part of the BOTâs efforts to boost digital payments.
The BOTâs governor, Emmanuel Tutuba, said the bank plans to promote using PoS machines to facilitate and encourage digital payments.
The new strategy aims to boost the countryâs digital payment and drive it towards a cash-lite economy, offering advantages like improved transparency and convenience.
The East African countryâs economy is projected to grow, with the World Bank forecasting a positive medium-term outlook and six per cent GDP growth.
Manufacturing, electricity, construction, tourism, trade, and financial services drive the country’s growth.
Digital payments are becoming increasingly popular in Tanzania due to convenience and speed of adoption.
Data shows that transactions in the countryâs digital payments market will reach $4,430 million in 2024.
The report stated that the market will reach $2.375 million in 2024, with PoS payments being the largest segment.
Only a few African countries have adopted over 50% of digital payment.
According to BusinessInsider, Kenya and South Africa are the leading digital payment companies across the continent.
Other countries surpassing 50% digital payment adoption include Kenya at 75.8%, South Africa at 70.5%, Ghana at 63.7%, Gabon at 62.3%, Namibia at 58.5%, and Lesotho at 54.9%.
Reports say Tanzania is ranked eighth on the continent, with 48% of digital payments adoption and has risen as 76% of the population is now formally included, from 65% in 2017.
The growth aligns with the increase in access to mobile phone ownership, which increased from 63% to 75% during the same period.
Access to formal and commercial banking services has also risen from 17% to 22% since 20017 due to the enhanced accessibility of mobile devices.
TimesNow.com.ng earlier reported that PoS operators have hiked their charges as Nigeria began the N50 EMTL on fintech platforms.
The Federal Inland Revenue Service ordered the payment on behalf of the Nigerian government.
