Mobile money is widely used in Tanzania, East Africa.
Last year close to 50 percent of mobile subscribers had a mobile money account, mainly because of a high unbanked population and a strong drive by telcos to get people using their services.
Just 40 percent of Tanzanians over the age of 15 had a bank account in 2014, according to the World Bank. To fill this gap, all the major telecom operators in the country have launched mobile banking services.
Poeple can shop with Tigo Pesa mobile money and Vodafone’s M-Pesa allows international money transfers between Vodafone users in Kenya and Tanzania.
The rapid rise in use means that — according to GlobalData estimates — almost a quarter of all mobile revenue in Tanzania was from mobile money services last year.
And it’s going to continue to grow.
Mobile subscriber penetration was at 71 percent in 2016, so as the remaining population get phone subs they’re likely begin using mobile money services too.
Would it be too far-fetched to predict that mobile money services will make traditional banking obsolete in the country?
But it’s going to become even more important in Tanzania.