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Interoperability pushes up mobile money transactions and value

THE utilisation of interoperability in mobile money services continued to grow, reaching 177.0 million transactions worth 5.20tri/-, compared to 146.5 million transactions valued at 4.88tri/-.

According to the Bank of Tanzania (BoT) Monetary Policy Statement for June, it shows that this represents 20.8 per cent increase in volume and 6.6 percent in value compared to the corresponding period of 2018/19.

The interoperability of mobile financial services has contributed to overall growth of total mobile money transactions by 4.8 per cent in volume and 11.5 per cent in value, compared to the corresponding period of 2018/19.

As at the end of April this year, the number of active registered accounts for mobile money was 26.0 million, compared with 22.3 million at the end of June 2019.

In order to encourage and enhance use of digital channels in accessing financial services and promote cashless economy in the wake of Covid-19, the Bank in collaboration with mobile money operators increased daily mobile wallets transaction limit to customers from 3.0m/-to 5.0m/-, and daily balance from 5.0m/-to 10.0m/-.

The Bank will continue to spearhead the use of digital payment systems for transactions, including online banking and point of sales.

The payments, clearing and settlement systems continued to operate efficiently with growing utilisation of digital channels in financial services delivery.

The enhanced use of digital platforms by both public and private sector has reduced transaction cost and eventually supporting economic activities.

The East Africa Payment System (EAPS), operated smoothly, and transactions increased, suggesting increased trade activities between Tanzania and other EAC countries.

During the period of July 2019 to April 2020, transactions between Tanzania and Kenya were 2,358 valued at KES 3.7 billion, an increase of 1.6 percent in volume and 4.7 percent in value.

Transactions between Tanzania and Uganda were 362, valued at UGX 12.0 billion, a growth of 29.3 percent in volume and decrease in value by 47.0 per cent.

Transactions with Rwanda were valued at RWF 2.9 million, a decrease in volume and value by 66.7 per cent and 99.2 per cent, respectively, when compared with corresponding period of 2018/19.

Transactions settled through SADC-Real-Time Gross Settlement (RTGS) were 296,581 with a value of ZAR 1,047.9 billion, of which value of received and paid transactions through SADC-RTGS by Tanzania were ZAR 472.9 million and ZAR 471.2 million, respectively.

The Electronic Fund Transfers (EFT), through Tanzania Automated Clearing House (TACH), continued to run smoothly, with growing number of transactions, following increased use of the system by the government in making payments of salaries to civil servants.

During the period under review, the volume of EFT transactions grew by 4.7 per cent, while the value increased by 10.4 percent when compared to the corresponding period of 2018/19.

The increased use of EFT by the government has improved efficiency, while minimising costs associated with the use of cheques.

The effect was also reflected in the decline in usage of Tanzanian shilling denominated cheques in the Tanzania Automated Clearing House (TACH), both in terms of volume and value by 23.0 percent and 17.5 per cent, respectively.

Author: DAILY NEWS Reporter

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