Bank of Tanzania plans instant payment system
The Bank of Tanzania (BoT) in East Africa plans to launch its new payment system in February following a successful pilot program with banks and mobile operators that began in June of the year. last, according to The Citizen on Friday, Jan.7.
The Tanzania Instant Payment System (Tips) is an interoperable system that enables real-time money transfers between banks and other digital financial service providers. Although the new system was originally scheduled to be rolled out last month, it has been postponed due to necessary system upgrades.
âWe started with a pilot project in June that integrated three banks and two mobile phone companies – Airtel and Tigo,â Bernard Dadi, director of BoT’s national payment system, told Citizen. He added that Vodacom should also participate.
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Grandma added that Tips will enable cost-effective and secure interoperability of digital financial services between payment service providers.
Tips will coordinate with mobile money operators such as Airtel Money, Tigo, M-Pesa, HaloPesa, Ezy Pesa and T-Pesa. Users will be registered on a platform, and anyone looking to send funds can search for the name of any recipient registered through the USSD code or through an app.
The way the system works now, if someone wants to send money to someone else who is in a different network, there are a lot of steps to go through. In addition, the steps vary depending on the network operator. With Tips, everything is on one platform and the steps are the same for everyone.
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Currently, when sending money to someone on a different network, there are a number of steps that you have to go through and there are different fees depending on the requirements of each network operator, but with the tips, everything will be done under a single platform.
Grandma told the outlet that this first phase will be followed by two more before a fourth final phase kicks off, which will include taxes and bulk payments.
In addition to reducing dependence on cash, Tips is expected to boost financial inclusion by opening up access to financial services in Tanzania.