Tanzania’s digital payment ecosystem witnessed explosive growth in 2024, with real-time transactions processed through the country’s national payment switch more than doubling in value compared to the previous year. Data from the Bank of Tanzania’s latest financial stability report reveals that transactions reached TSh29.9 trillion ($11.6 billion) by December 2024, up sharply from TSh12.5 trillion ($4.9 billion) in 2023.
The surge reflects increased adoption of mobile money, online banking, and digital commerce across the country, driven by wider smartphone penetration, improved fintech infrastructure, and growing trust in digital financial services. Analysts suggest that government-led initiatives to enhance payment interoperability and integrate mobile wallets with traditional banking platforms have been pivotal in accelerating growth.
However, the boom also presents challenges. The rapid expansion of digital payments requires robust cybersecurity frameworks to protect consumers and institutions from rising fraud risks. Additionally, gaps in rural internet coverage could slow the pace of financial inclusion unless addressed through targeted infrastructure investments.
For Tanzania, the trend underscores a larger shift toward a cashless economy. If momentum continues, the country could emerge as one of East Africa’s leading digital finance hubs, attracting further investment into its fintech sector and enabling greater participation of small businesses in the formal economy.