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Tanzania: Central bank removes card transaction fees

Tanzania's central bank has removed card payment fees and is warning merchants against adding additional fees to these transactions. The regulator said debit and credit card transactions at various point-of-sale (POS) terminals are indeed becoming free.

“One of the key measures being taken is to ensure that payments made using debit, credit or prepaid cards at merchants' point-of-sale (POS) terminals are completely free for consumers,” said Emmanuel Tutuba, Governor of the Bank of Tanzania (BoT) in a statement dated Monday, December 23.

The governor highlighted the central bank's commitment to promoting the adoption and use of digital payments. “Their adoption helps build a cashless economy while providing the benefits of enhanced security, transparency and ease of use.” “, he added.

Card payments are not widely used in the country compared to MobileMoney.

According to official data from the communications regulator, the Tanzania Communications Regulatory Authority (TCRA), most Tanzanians use Mobile Money, with the latest statistics showing some 55.8 million mobile money accounts, double the number from 25.8 million in 2019. This means that eight out of ten Tanzanians have access to mobile money, in a country of around 68 million people.

The BoT then urges Tanzanians to adopt digital payments for the expansion of the financial sector and the economy. She adds that digital payments provide a secure, convenient and cost-effective method of transacting.

“The Bank reminds the public that merchants are strictly prohibited from imposing additional fees or surcharges on card transactions,” Mr. Tutuba added.

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