Tanzania was the first country in the world to implement financial interoperability. What does this mean for digital finance in the country?
It has now been seven years since Tanzania enabled interoperability of digital finance. As such, consumers of one mobile money scheme have been able to transfer cash to a client of a rival mobile money scheme. This has meant that remittance customers now find it easier to send money to a bank or to a mobile money account without much hassle.
Additionally, this has enabled digital money transfer services to work with the CRDB Bank, People’s Bank of Zanzibar and Equity Bank Tanzania, where customers can cash in and out their money at any of the banks’ branches countrywide, within minutes with 288 WorldRemit cash pickup locations across the country.
Interoperability remains vital, as it allows users to keep the transaction digital from beginning to end, eliminating the need to convert to cash on a regular basis. This has made it easier for Tanzanian innovators to create relatively affordable solutions for receiving and sending money with ease via mobile devices or via a website.
As a result, access to financial services for the unbanked has expanded dramatically. Interoperability in Tanzania has also come with the benefits of convenience, as payments are now faster, more cost effective and secure for all parties involved. Remittance services have found a conducive operating environment in Tanzania, with interoperability acting as a foundational step in boosting financial access.
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