The Bank of Tanzania has announced that charges on debit, credit, and prepaid card payments at points-of-sale (POS) will be eliminated. Merchants who violate this directive will face penalties. This move is part of the government’s efforts to promote a cash-lite economy and encourage digital transactions.
Nearly half of Tanzania’s population, 48.4%, already use digital platforms for transactions. This is driven by increased smartphone ownership and financial inclusion. The government believes that eliminating card payment charges will enhance security, transparency, and convenience in transactions, aligning with the country’s economic growth objectives.
Tanzania’s economy is poised for growth, with the World Bank predicting a positive medium-term outlook and GDP growth of around 6%. Key sectors driving this growth include manufacturing, electricity, construction, tourism, trade, and financial services.
Eliminating card payment barriers
Digital payments are also increasingly popular due to their convenience and speed. Financial inclusion in Tanzania has risen significantly, with 76% of the population now formally included, up from 65% in 2017. This growth aligns with the increase in mobile phone ownership, which rose from 63% to 75% during the same period.
Access to commercial banking services has also improved, increasing from 17% to 22% since 2017, largely due to the enhanced accessibility of these services through mobile phones. The Bank of Tanzania urges the public to report any unauthorized charges encountered during POS transactions to their respective banks or through the Bank’s Consumer Complaints Desk. “The Bank hereby reminds the public that merchants are strictly prohibited from imposing any additional fees or surcharges on card transactions,” the release stated.
As Tanzania continues its push toward financial inclusion and digital transformation, the Bank’s efforts to eliminate barriers to digital payment adoption are poised to contribute to a more secure and efficient economy. This initiative highlights the central bank’s dedication to fostering trust in digital payment platforms and ensuring compliance with its regulations.
