TIPS registers 500m/- transactions in 12 months

DAR ES SALAAM: DIGITAL transactions conducted through the Tanzania Instant Payments System (TIPS) have surpassed 500m/- by the fiscal year end of this June, underscoring the central bank’s ongoing efforts to reduce reliance on cash and promote a digital economy.

TIPS designed to facilitate real-time, low-cost and interoperable payments across all major financial service providers including banks and mobile money operators, is quickly gained momentum among individuals, businesses and institutions.

Bank of Tanzania (BoT) Governor Mr Emmanuel Tutuba said the one-year performance reflects growing public confidence in digital platforms and marks a significant step toward achieving country’s broader transitioning toward a cashless, technology-driven economy.

“This figure is clear evidence that this system integrated with all telecom companies in the country and offered at a low cost, has significantly simplified transactions for people who previously relied heavily on cash,” he said yesterday during the inauguration of Visa Tanzania’s new office in Dar es Salaam.

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He added that the central remains committed to ensure the mitigation of cash us as it aims to promote digital economy in the country.

Visa Tanzania officially opened its new office in the country, marking a significant milestone in its commitment to advancing financial inclusion and digital transformation across East Africa. The new office will serve as a regional hub, supporting operations in Tanzania, Uganda, Burundi and Rwanda.

The BoT boss added that their arrival in the country presents an opportunity to further expand digital financial services nationwide.

Visa’s Head of Southern and Eastern Africa Mr Michael Berne said the purpose to extend their wings in the country is due to Tanzania’s dynamic and promising digital payments markets across the African continent.

“With increasing mobile and internet penetration, a vibrant SME sector and a strong push for financial inclusion, we see tremendous opportunity to partner with local stakeholders to shape a more inclusive and innovative payments ecosystem. “ All the key ingredients are just here. So that is why opening an office is just the next logical step in our growth, execution of our growth strategy for this country,” he said.

The country is seen as a strategic hub for bringing innovations to Eastern bloc, leveraging its economic momentum and government policies.

Moreover, Visa Tanzania’s Country Manager Mr Victor Makere said the company’s entry into the Tanzanian market will help simplify payment methods particularly for international transaction, benefiting especially smallscale entrepreneurs.