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Vodacom, Millicom’s Tigo and Airtel join forces on mobile money to boost financial inclusion.
Tanzania’s major mobile operators on Thursday announced that their money transfer services are now fully interoperable.
The country claims to be the first market in Africa to be able to offer interoperability on peer-to-peer money transfer.
Tigo, Airtel and Zantel – the latter having been acquired by Tigo owner Millicom in October – announced an interoperability agreement in 2014. Market leader Vodacom has now joined the partnership.
The companies have now securely integrated their Tigo Pesa, Airtel Money and M-Pesa platforms, meaning customers of any of the three can send and receive money to and from the mobile wallets of others, with standardised tariffs.
The telcos highlighted the fact they have aligned customer service, settlement and compliance processes, thereby ensuring users’ funds are safe.
"We believe interoperability is crucial to the success of mobile money and the wider goal of increasing financial inclusion," said Ruan Swanepoel, head of mobile financial services at Tigo Tanzania and Millicom.
"It is also a fundamental building block towards constructing a digital economy, enabling merchants and other start-ups to participate in the financial services ecosystem," he said. "Our aim going forward is to reach similar agreements with networks in other markets."
Tanzania has more than 16 million mobile money users, with transactions reaching the equivalent of half of the country’s GDP per month, the operators said.
"This is a great evolution of the mobile money service in Tanzania and a first of its kind in the world," said Ian Ferrao, managing director at Vodacom Tanzania.
"Such innovation truly speaks to financial inclusion as it helps draw more cash into the formal financial system and helps improve our customers’ lives by simplifying transactions and adding speed and convenience to their daily routine," he said.
"The partnership forged between Airtel, Tigo and Vodacom today is a continuation of our commitment to provide Tanzania with the financial inclusion sought by many across the country," added Airtel managing director, Sunil Colaso.
