How DPO’s mobile payments help tourism businesses post Covid-19 in Tanzania

THE Covid-19 pandemic hit the travel and tourism industry hard in 2020 forcing borders to be closed and tourists stayed at home and in the wake-developing countries, which rely heavily on tourism, were particularly affected. In Tanzania, for example, tourism accounted for 17 per cent of GDP in 2019, the second-largest component.

A recent report by the Central Bank found that the proceeds from the Tanzanian travel and tourism industry decreased by 74 per cent during the pandemic.

Digital acceleration But 2020 was also a pivotal moment for digital acceleration worldwide.

Mobile payments and digital technologies helped businesses of all types and sizes in Tanzania to grow. The behavioural changes Covid-19 caused shifted economic activity towards online platforms and accelerated the cash-digital transition.

Longterm behaviour changes caused by the pandemic have completely altered how the world operates and led to considerable advances in the digital economy. In 2021, there were more than 1.35 billion registered mobile money accounts worldwide, a tenfold increase from 134 million in 2012.

Businesses in the travel and tourism industry need to tap into the digital economy to prosper. Tanzania is currently one of the most advanced mobile money markets in sub-Saharan Africa. The country has experienced considerable digital investment over the last few years.

The government-backed National ICT Broadband Backbone now extends over 7,500km in regions and districts across the country, and the Fibre Consortium has constructed over 1,500km of backbone fibre linking the major cities.

The adoption of mobile broadband technologies is rising rapidly; 3G and 4G connections reached 40 per cent and four per cent of total connections, respectively, in 2018 . So, fortunately, the digital infrastructure in Tanzania can support and connect businesses and tourists travelling around the country so that they can reliably pay and book online, wherever they are.

Changes in the tourism and travel industry The tourism and travel industry has permanently changed: 83 per cent of passengers now travel with mobile devices and view digital services as a vital part of their bookings and journeys. It is therefore critical that travel and tourism businesses offer digital payments.

According to the World Economic Forum, by 2025, digitalisation will create up to US$305 billion in additional value for the tourism sector through increased profitability.

In Tanzania, there was a huge shift from regional to international tourism in the mid-1970s, with the USA accounting for 13.2 per cent of tourists and the UK for 9.5 per cent.

For businesses in the Tanzanian tourism and travel industry to recover and grow after the pandemic, they must be able to reach these international markets and make travel bookings, payments, and transactions as easy and safe as possible using digital payments and platforms.

How mobile payments and digital technologies can help One of our clients in Arusha, the New Safari Hotel, told us that payment links have made communication about payments between the customer and the hotel much easier.

According to the hotel, customers feel that their credit card information is secure using virtual credit cards. Sending payment links to customers has also provided the hotel with a convenient way to track bookings through their payments.

This essential service allows businesses to create invoices that are payable online quickly. The links can be sent to customers via email, SMS, or WhatsApp, reaching them wherever they are on their travels.

Payment service providers should be integrated with the most popular payment methods across Africa, enabling businesses to accept payments online from customers who can choose their preferred payment method, whether that is a credit or debit card or mobile money.

Quick-response (QR) codes aid seamless payment, all customers need is a mobile phone with a camera and a mobile payment app to make secure payments in seconds.

QR codes are quick and easy to use and save time as the customer does not need to enter their personal details or those of the businesses they are paying; scanning the QR code will identify them instantly.

They also allow businesses to give their local and international customers a choice of currency, from Tanzanian shillings to US dollars, Euros and British pounds. QR codes have advanced security features as payment details are stored on your mobile phone: significantly decreasing theft and fraudulent purchases using your payment details. Security for payment service providers has never been better.

As an example, we have the highest security – PCI DSS Level 1 – which is compliant with advanced risk management.

Furthermore, 3D Secure Enabled Cards help prevent fraudulent use of payment cards by authenticating cardholders in card-not-present online transactions. It is a second layer of security implemented by the card schemes to protect card holders by verifying that it is the legitimate card owner performing those transactions.

Seamless payment options by payment service providers are crucial to the future success of Tanzanian travel and tourism businesses as they look to overcome the challenges from the Covid-19 pandemic. DPO helps businesses to grow by reducing transaction costs and increasing access to international clients who view digitalisation as non-negotiable.

Our easy payment system, including payment links, QR codes and multi-currency options, mean companies that use our services can take their business to next level effortlessly.

The writer is DPO Group Tanzania Country Manager, Janeth Kwilasa.