Tanzania’s real-time digital payment transactions soared in 2024, with the Tanzania Instant Payment System (TIPS) processing TSh29.9 trillion ($11.6 billion), more than doubling the TSh12.5 trillion ($4.9 billion) recorded in 2023, according to the Bank of Tanzania’s (BoT) latest financial stability report.
The system, launched in 2020, handled 454 million transactions in 2024, up from 236 million the previous year, as the number of participating institutions grew to 46.
TIPS, a centralized clearing system backed by the BoT, enables instant money transfers between banks, mobile money wallets, and other financial institutions, addressing fragmentation in Tanzania’s payment landscape.
The system has become a cornerstone of the country’s digital financial infrastructure, boosting financial inclusion, particularly for underserved communities.
Unlike Kenya’s market-driven model, dominated by Safaricom’s M-Pesa, Tanzania’s centralized approach emphasizes interoperability.
While Kenya’s mobile money transactions reached KES 8.7 trillion ($67.3 billion) in 2024, accounting for over half its GDP, Tanzania’s TIPS growth highlights its unique strategy for digital payments.
The BoT also upgraded its Financial Services Registry (FSR) in 2024, integrating geospatial mapping to monitor and expand financial access points, which totaled 52,000, including mobile money agents, bank branches, and ATMs.
However, access remains uneven, with rural areas falling below the national average of 4.8 access points per 10,000 adults, compared to over 15 in urban centers like Dar es Salaam. The GIS-enabled registry aims to target these gaps for investment.
