The outlook for e-commerce in Tanzania appears promising, driven by several key factors. The steady increase in internet penetration, with over 23 million users as of 2020, establishes a substantial potential customer base for online businesses. The widespread adoption of mobile money services, notably M-Pesa, facilitates online transactions and builds trust in digital payments. The expanding middle class in Tanzania, characterized by rising disposable income and increased consumer spending, creates a growing market for e-commerce ventures. Government support, as evidenced by initiatives like the National E-Commerce Strategy, further encourages the sector’s development. The surge in smartphone usage and the popularity of online marketplaces like Jumia and Kilimall contribute to the industry’s momentum. Additionally, Tanzania’s strategic location in East Africa presents cross-border e-commerce opportunities, allowing businesses to extend their reach beyond domestic borders. Despite challenges, such as improving infrastructure and fostering online payment confidence, the overall potential for significant e-commerce growth in Tanzania is evident, with expectations of rapid expansion in the coming years.
Popular offline payment methods in Tanzania
Cash
Mobile Money
Bank Transfers
Cheques
POS (Point of Sale) Terminals
Direct Debit
QR Code Payments
Prepaid Cards
e-Wallets
Pay-by-SMS
List of payment methods in Tanzania
Visa is widely accepted as a payment method in Tanzania. It can be used at most hotels, restaurants, and shops that cater to tourists. Additionally, many ATMs in Tanzania accept Visa cards for cash withdrawals.
Mastercard is extensively accepted as a payment method throughout Tanzania, encompassing major retailers, hotels, restaurants, and online transactions. To utilize Mastercard in the country, travelers need to ensure their cards are enabled for international transactions, a process that involves notifying their issuing bank of travel plans to Tanzania. Despite its widespread acceptance, it is prudent to carry local currency, particularly in smaller establishments or rural areas where cash may be the preferred payment mode. Vigilance in monitoring transactions and regular checks of account statements are recommended, along with informing the bank about travel plans to mitigate potential issues. In summary, Mastercard serves as a convenient and widely embraced means of payment in Tanzania, enhancing the ease of transactions for travelers across various establishments.
American Express is not widely accepted as a payment method in Tanzania. While some hotels, restaurants, and larger retailers may accept American Express, it is not as commonly accepted as Visa or Mastercard. It is recommended to carry an alternative form of payment, such as cash or a Visa/Mastercard credit or debit card, when traveling to Tanzania.
Diners Club, the renowned payment method, has now expanded its reach to Tanzania. This means that customers in Tanzania can now enjoy the convenience and security of using their Diners Club card to make purchases at various merchants across the country. With its global recognition and acceptance, Diners Club offers a reliable and efficient payment solution for both locals and tourists alike. Whether you’re shopping for groceries, dining out at a restaurant, or booking a hotel room, Diners Club provides a hassle-free payment experience that is both safe and convenient. So if you’re in Tanzania and looking for a trusted payment method, look no further than Diners Club.
UnionPay is a widely recognized payment method that has recently been introduced in Tanzania. This payment system has gained popularity among Tanzanians due to its convenience and reliability. Union Pay is accepted by a large number of merchants, making it easy for consumers to make purchases without worrying about carrying cash. This payment method is also secure, as it uses advanced technology to protect users’ personal and financial information. With Union Pay, Tanzanians can now enjoy hassle-free transactions and a seamless shopping experience. As the popularity of Union Pay continues to grow in Tanzania, it is expected to become one of the most widely used payment methods in the country.
JCB, or Japan Credit Bureau, is a prevalent payment method in Tanzania, accepted by a diverse range of merchants, including hotels, restaurants, and retail stores. To utilize JCB for transactions, customers must possess a JCB card issued by their respective banks, enabling usage at any point of sale terminal that supports JCB payments. This method extends to online purchases from Tanzanian merchants, offering a secure and convenient cashless alternative. JCB cardholders enjoy various benefits, such as reward points and discounts at participating establishments, while the company provides robust customer support services to address inquiries or concerns. Overall, JCB stands out as a dependable and widely embraced payment solution in Tanzania, affording customers a seamless and secure experience for both in-store and online transactions.
RuPay, a domestic card scheme in India comparable to Visa and Mastercard, has gained widespread acceptance in Tanzania. Tanzanians can use RuPay cards at a range of merchant outlets, including hotels, restaurants, supermarkets, and online platforms, following partnerships between many Tanzanian banks and RuPay. To utilize RuPay in Tanzania, individuals must possess a RuPay card issued by an Indian bank, swiping or inserting it into payment terminals for secure transactions. This payment method offers a secure and convenient alternative to carrying large sums of cash for both Indian travelers to Tanzania and Tanzanians with RuPay cards, making it a popular choice for various transactions in the country.
Maestro, a debit card brand owned by Mastercard, is a popular and widely accepted payment method in Tanzania. To utilize Maestro in the country, individuals need a Maestro debit card issued by a supporting bank, and they can inquire with their bank about the availability of Maestro cards. With a Maestro card, users can withdraw cash from ATMs or make purchases at various points of sale that accept Maestro. The process involves inserting the card, entering a PIN, and following on-screen prompts. While Maestro is convenient and broadly accepted, it’s advisable to carry cash as a backup, especially at smaller merchants that may not accept card payments. Overall, Maestro facilitates seamless transactions for both residents and travelers in Tanzania.
Verve is a highly popular payment method in Tanzania, widely embraced by merchants both online and offline. It offers a secure and convenient way for users to make transactions, with acceptance at various establishments such as supermarkets, restaurants, hotels, and online retailers. To utilize Verve in Tanzania, individuals must possess a Verve card issued by a supporting bank. Payment typically involves card insertion or swiping, accompanied by entering a PIN, and some vendors may also facilitate contactless payments with Verve cards. Although widely accepted at major retailers and businesses with card facilities, it is advisable to confirm a merchant’s acceptance beforehand. Overall, Verve provides residents and visitors in Tanzania with a trusted, flexible, and secure payment solution for their diverse transactional needs, blending convenience with peace of mind.
UPI (Unified Payments Interface) is used in Tanzania. UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that allows users to link multiple bank accounts to a single mobile application. It enables users to make instant money transfers, pay bills, and make online purchases. UPI has gained popularity in Tanzania and is widely used for digital payments.
Paytm is a popular mobile payment platform that is widely used in India, but it has also expanded its services to other countries, including Tanzania. In Tanzania, Paytm can be used for various purposes such as mobile recharges, bill payments, money transfers, and online shopping.
M-Pesa, initially introduced in Kenya in 2007 and subsequently extended to various nations, including Tanzania, is a mobile money transfer service currently managed by Vodacom Tanzania, a subsidiary of Vodafone, in the Tanzanian market. Renowned for its convenience and accessibility, M-Pesa in Tanzania enables users to effortlessly conduct financial transactions through their mobile phones, encompassing activities such as money transfers, bill payments, and purchases. Additionally, the service facilitates cash withdrawals from authorized agents or ATMs, contributing to its widespread adoption as a popular and versatile payment method in the region.
Tigo Pesa is a prominent mobile money service in Tanzania, operated by the telecommunications company Tigo. It enables users to send, receive, and store money through their mobile phones, serving as a versatile payment method for goods and services, including retail transactions, bill payments, airtime purchases, and online shopping. To utilize Tigo Pesa, users need an account with sufficient funds in their mobile wallet, and payments can be swiftly initiated by entering the recipient’s phone number and the desired amount. The service guarantees instant processing, with both sender and recipient receiving confirmation messages. Tigo Pesa not only eliminates the need for cash but also offers a secure and convenient digital wallet accessible anytime, anywhere. Widely accepted across the country, it facilitates payments at various merchants and enables users to withdraw cash from authorized agents or ATMs. Overall, Tigo Pesa is a popular and widely embraced digital payment solution in Tanzania, offering accessibility, security, and convenience for both individuals and businesses.
Airtel Money, offered by Airtel Tanzania, is a prominent mobile money service in the country, allowing users to conduct diverse financial transactions through their mobile phones. To utilize Airtel Money for payments, customers must first register for an account at an Airtel Money agent or Airtel shop. Deposits into the account can be made through agents, bank transfers, or mobile banking. The service enables payments at participating merchants, as well as money transfers between Airtel Money users. Initiating a payment involves dialing a USSD code, entering the recipient’s details, amount, and a personal PIN for authentication. Airtel Money serves as a versatile payment option for utilities, groceries, transportation, online purchases, and more, promoting a secure and convenient alternative to cash or physical cards. Beyond payments, the service offers features like money transfers to bank accounts, cash withdrawals, airtime top-ups, and savings accounts, with transaction history and balances accessible through the Airtel Money app or USSD code. Overall, Airtel Money is a widely embraced and user-friendly mobile payment solution in Tanzania.
