Cross-border mobile money inflows rise 33 percent to Sh698 billion

BoT Governor, Emmanuel Tutuba, attributed the growth to the continued expansion of the country's digital payments ecosystem, driven by new market entrants, product innovation and a supportive regulatory environment.

“The payment ecosystem continued to expand with the entry of new participants and innovative products, supported by a conducive regulatory and operating environment,” he said.

Mr Tutuba noted that the central bank had strengthened oversight through enhanced surveillance systems, improved risk management frameworks and closer engagement with industry players to safeguard financial system stability.

He added that Tanzania was working closely with EAC and SADC member states to harmonise regulatory frameworks and deepen regional integration of payment systems.

While inbound transactions recorded strong growth, outgoing payments presented a mixed picture. The volume of outward transactions rose by 13.77 percent to 2.52 million, but their value fell by 19.17 percent to Sh275.19 billion from Sh340.45 billion in 2024, suggesting a decline in average transaction sizes.

The widening gap between inflows and outflows points to changing usage patterns, with mobile money increasingly being used for high-frequency, low-value cross-border payments, informal trade settlements and remittances.

“The trend reflects the increasing importance of mobile payments in facilitating cross-border payments within the EAC and SADC regions,” the central bank said in its National Payment Systems Annual Report 2025.

The growth comes as Tanzania intensifies efforts to modernise its payments infrastructure and align with the G20 roadmap aimed at making cross-border payments faster, cheaper, more transparent and more accessible.

The roadmap seeks to address longstanding challenges that have made international money transfers costly and slow, particularly for individuals and small businesses.

Under the framework, countries are targeting a reduction in the average cost of cross-border remittances to between one and three percent by 2027, while ensuring that at least 75 percent of transactions are credited within one hour and that fee structures and foreign exchange rates are more transparent.

Although Tanzania has made progress in expanding digital payment infrastructure, the report notes that improvements for end users remain uneven, highlighting the need for further reforms to meet the 2027 targets.

The Bank for International Settlements (BIS) has identified harmonised data standards, stronger interoperability and broader access models as key enablers of more efficient cross-border payment systems.

To accelerate progress, Tanzania has stepped up collaboration with regional partners through the EAC Cross-Border Payment System Masterplan 2025, which aims to lower transaction costs, promote settlements in local currencies and improve real-time interoperability among member states.

The BoT has also continued to strengthen cross-border payment capabilities through the Tanzania Instant Payment System (TIPS), which enables seamless transfers between banks, mobile money operators and other financial service providers.

TIPS complements regional payment platforms such as the East African Payment System (EAPS) and the SADC Real-Time Gross Settlement (SADC-RTGS) system, both of which facilitate cross-border transactions among participating countries.

In addition, Tanzania is progressively adopting the Pan-African Payment and Settlement System (PAPSS), a continental platform designed to support intra-African trade by enabling transactions in local currencies.

The system is expected to reduce reliance on offshore correspondent banking arrangements, which often increase transaction costs and settlement times.

The expansion of cross-border mobile money services is a key driver of regional trade, labour mobility, particularly in EAC.