Tanzania ditches recharge vouchers, dances to mobile wallet beat
In the early days of mobile telephones in Tanzania, recharge vouchers and starter parks were priced in US dollars like the one above
Hashem Moshi is a retail shop owner in Mwenge, Dar es Salaam, who in the early 2000s sold several items including recharge vouchers but it has been several months since he last made that trip to the super dealer to replenish his stock.
What he has will probably take him several months, because he too doesn’t use recharge vouchers any longer.
The same is the case for Rosemary Mahenga a third year student at the University of Dar es Salaam (UDSM)
This is the story of many mobile phone users who have, over time, subconsciously ditched the traditional culture of purchasing physical cards to recharge their phones for calls, messaging and data top-up needs.
As the country grooves to the rhythm of digital transformation, paper recharge vouchers are slowly fading into the background, replaced by the vibrant stage of mobile wallets. In this digital orchestra, convenience and accessibility reign supreme.
Tanzania boasts a whopping 51.4 million mobile money accounts, according to the National Bureau of Statistics (NBS).
By September 2023, these accounts had danced to the tune of 422 million mobile transactions – a significant leap from the 243 million transactions recorded in the first quarter of 2019, when mobile money accounts numbered just 22.7 million.
This digital crescendo has fueled easier access, faster services, and greater convenience, pushing telecoms to adapt their steps to the evolving digital landscape.
The head of consumer propositions at Tigo Tanzania, Ndevonaeli Eliakimu, agrees that customer behavior is undergoing a ‘significant shift’ towards embracing electronic methods.
"People are ditching cash withdrawals and vouchers when services are streamlined within the mobile wallet, allowing them to waltz through transactions with ease," he says.
However, the digital tango isn't reaching all corners of the country. Remote areas, far from the urban beat, face challenges in joining the electronic rhythm.
Connectivity gaps and infrastructural hurdles keep paper vouchers relevant in these pockets of the country, forcing them to either "buy via mobile" or embrace the "thrown voucher" technique.
Vodacom Tanzania PLC echoes this sentiment, acknowledging the waning interest in scratch cards. "Usages have diminished," notes Ms. Zuweina Farah, the company's external affairs director, as the chorus of electronic payments gains volume.
Ms. Farah attributes this decline to the security, real-time accessibility, and convenience offered by electronic methods.
Using these methods allows customers to top up their airtime from anywhere, without the fear of losing vouchers or falling victim to theft.
"A vital part of our work at Vodacom is to encourage and promote the digital economy," Ms. Farah explains. "This includes reducing cash dependence and increasing the use of digital methods for various purchases and payments."
Though she does not mention the exact figures regarding how much the numbers have fallen Ms Farah says it goes beyond convenience, with environmental consciousness also playing a part in the decline of paper vouchers.
Their production, transportation, and disposal contribute to pollution and resource usage.
"This has led communities and companies to appreciate the importance of environmental conservation, further driving the reduction of environmentally harmful products," Ms. Farah adds.
As Tanzania continues its digital journey, paper vouchers are likely to become relics of the past. The mobile wallet, with its convenience and accessibility, is the platform where future transactions will dance to the beat of a cashless future.
