By Business Insider Reporter
In the small village of Kilele, nestled on the outskirts of Bukoba, life once moved at the speed of a snail and long bus rides. Farmers carried sacks of cassava for hours just to reach the nearest market.
Mothers stitched savings into the hems of their dresses, praying it would reach the town merchant safely. Digital payments? That felt like something for cities, not dusty roads and grass-roof huts.
Then came TIPS.
Developed in-house by Tanzanian minds under the leadership of the Bank of Tanzania (BoT), the Tanzania Instant Payment System (TIPS) wasn’t just another tech project. It was a declaration. A message that financial inclusion wasn’t a luxury, but a right.
By 2024, TIPS was processing 1.5 million transactions per day, with over 490 million transactions completed in just one year.
The value of those payments soared to TSh15.7 trillion – money that once moved slowly, if at all, now changed hands in real-time, 24 hours a day, 365 days a year.
For people like Cecilia, a cassava farmer and single mother of three, this changed everything.
“I used to pay TSh 2,000 just to send money to my supplier. And if I made a mistake, it was gone,” she recalls. “Now, I just use my phone. It goes instantly. If there’s an issue, I can reverse it. I didn’t even know that was possible.”
Cecilia’s experience is echoed by millions. Thanks to TIPS’s alias-based payments, she no longer needed to remember long account numbers – just a phone number or simple ID sufficed.
When her son in Dar es Salaam needed school fees, Cecilia could send money instantly using a service connected to TIPS, which links 45 digital financial service providers (DFSPs) – both banks and mobile money platforms – under one roof.
The platform was designed for people like her – people outside the formal financial system, with no bank account – but a phone in their pocket.
More than 63.2 million mobile money wallets were active by the end of 2024, a figure that includes tens of millions from rural and peri-urban areas.
Each wallet was a bridge – linking Tanzanians not just to money, but to opportunities, education and dignity.
Even small shopkeepers like Mutasingwa, who ran a duka in Bituntu in Kagera Region, began using TIPS to pay suppliers and accept payments.
“Before, I only took cash. Now, customers send money directly. It’s fast and I don’t worry about being robbed,” he says.
The key? Ultra-low transaction costs. Because TIPS is operated on a not-for-loss basis, fees are minimal – removing one of the biggest barriers to financial inclusion.
Behind the scenes, TIPS runs with same-day settlement, ensuring liquidity and minimizing risks for users and providers alike. With 3x processing capacity available, it’s ready for future growth – including regional payment linkages and cross-border remittances.
But numbers only tell half of the story. The real power of TIPS lies in how it re-imagined governance. From fintech startups to government agencies, TIPS was co-designed with Tanzanians at the table – inclusive, local and built with trust.
For BoT’s Mutashobya Mushumbusi, Head of Retail Payments, the success is not in the transactions, but in the lives changed.
“This system wasn’t imported. It wasn’t outsourced. We built it here, for us. It’s a symbol of digital sovereignty and national resilience.”
As the sun sets on Kilele, Cecilia checks her phone – another customer has paid for a bulk order of cassava. Her business is growing. Her children are in school. And thanks to TIPS, her future is just a tap away.
