Over 84% of small and medium-sized enterprises (SMEs) in Tanzania have started using digital payment systems since the previous two years according to survey data.
This research investigation entitled “Value of Acceptance: Understanding the Digital Payment Landscape in Tanzania” detects an important evolution of business payment activities that eliminate cash-based operations.
The rising trend stems from three main reasons: to minimize operational risks and reduce fraud and to improve operational efficiency alongside better customer service experiences.
More than fifty percent of SMEs operating through e-commerce platforms actively support digital payment methods thus demonstrating the expanding digital payment environment across the country.
Organizations now use mobile money together with card payments and online banking services to execute deals while decreasing their cash-dependent business operations.
Visa East Africa Vice-President Chad Pollock highlighted the encouraging results of the research by saying “The research findings demonstrate Tanzania’s promising digital payments market expansion.” The strengths that accrue to businesses and consumers alongside the economy at large establish an attractive prospect for expansion.
Some hurdles persist despite the positive developments observed in this scenario. Businesses that operate on a cash-only basis face sales losses because their customers do not have sufficient cash on them according to the report findings.
The failure of companies to t digital payment systems creates a revenue risk because their customers are choosing other cashless alternatives. The impediments to complete adoption of digital payments include restricted public knowledge alongside fee costs and issues regarding infrastructure installations.
