The Bank of Tanzania has launched the Tanzania Instant Payment System (TIPS) project, a single platform to connect different payment systems providers to facilitate easiest, fastest, cost-effective and secure instant payments.
Operated by the Bank, TIPS will promote interoperability of digital financial services amongst payment service providers by implementing efficient clearing and settlement.
BoT Deputy Governor Dr. Bernard Kibesse, who officially launched the TIPS project, commented: “the aim is not only at improving operational efficiency and security in our financial system but also placing Tanzania as a leading country in pursuing solutions for cost-effective payment systems.”
He also explained that the TIPS will promote financial inclusion by promoting the use of electronic payments and money circulation.
The implementation of the TIPS will take 18 months and is expected to be operational in June 2020.
Mobile Money in Tanzania
In its Monetary Policy Statement for Feb 2019 English Version, BoT indicates that during the first half of 2018/19, 83.4 million transactions worth TZS 2,897.76 billion (USD 1.2 billion) were processed.
This represents an 85.7% and 52.1% increase in volume and value compared to transactions recorded during the corresponding period of the preceding financial year.
Meanwhile, the number of active registered accounts for mobile money stood at 23.3 million in December 2018, compared with 19.4 million at the end of December 2017.