Banking sector is poor in most of the African countries and amid such condition the telecom companies are playing key role with their mobile money services, particularly in the East Africa region.
Tanzania is among those countries where about fifty percent of mobile subscribers used mobile money account in 2016 and a report reveals the success was mainly because of high unbanked population in the country.
A report from World Bank reveals in 2014 only 40 percent of people over the age of fifteen had a bank account in Tanzania and the gap is filled by mobile banking services of the major telcos like the Vodafone’s M-Pesa and Tigo Pesa mobile money.
The mobile wallets are widely used for shopping in the country and Vodafone also facilitates international money transfers between its Kenyan and Tanzanian users.
If believed to a report by GlobalData, about one quarter of all the mobile revenues in the country in 2016 was from mobile money services.
Industry experts point out the mobile money market will further grow in the country.
Last year, the mobile subscriber penetration in Tanzania was about 71 percent and so it is said there is still some more market share left for the telecom giants to grab with their mobile money services.
If the growth is rapidly it may also be said the outdated banking sector may soon become obsolete in Tanzania.