Mastercard and Selcom have signed a seven-year partnership agreement to introduce an array of payment solutions in the country, thereby promoting Tanzania’s goal of becoming a cashless economy. Tanzanians will be able to transact conveniently, quickly and securely at more payment acceptance locations. Consumers, retailers and local businesses are benefiting greatly from the introduction of Masterpass QR currently being used across various retailers and business owners. Consumers will also gain access to payment solutions that will be accessible on mobile money platforms or through their bank.
“Tanzanians have proven to have an appetite for digital payments, particularly mobile. The country had over 40 million mobile phone subscribers in 2017, showing the potential to create and scale innovative solutions on this platform” says Sameer Hirji, Executive Director of Selcom.
“With the wider variety of payment options at consumers’ fingertips, it is equally important to ensure that they are able to use these solutions wherever they may be paying for goods or services,” said Raghav Prasad, Division President, Sub-Saharan Africa, Mastercard.
“In order for us to narrow the gap and ensure Tanzanians have access to relevant financial tools, our approach with Selcom is to build a stronger payment ecosystem. Our partnership will strengthen key areas of the economy, thus better-equipping businesses and consumers to replace cash with secure and convenient payment options, whether they be on mobile or card solutions – it is not a one size fits all approach,” said Prasad.
Selcom will also introduce a Mastercard card linked to a mobile wallet, which helps the user withdraw cash or pay in-store or online. In a bid to support online payments, merchants will gain access to the Mastercard Payments Gateway Services platform, which helps online retailers accept payments for web purchase both from local and international users, further increasing the options for consumers on how they choose to make purchases.
“We are committed to supporting local business growth by delivering meaningful connections, relevant technology and by driving economic efficiencies. It is for this reason, that our partnership with Mastercard is so vital to the growth of Tanzania. Our collaboration is helping us achieve our goals of connecting and digitizing the payments ecosystem in Tanzania,” said Hirji.
“Cash is inefficient and presents risks to both business owners and consumers, additionally it puts a costly burden on the local economy as cash is expensive to transport and handle. Digital payment solutions not only make consumers’ and merchants’ lives easier, but they also support the local economy’s growth,” concludes Prasad.