Fintech & digital payments rules in Tanzania (2026)

The Bank of Tanzania regulates payment systems under the National Payment Systems Act No. 4 of 2015. Section 6(1) makes it an offence to operate a payment system or provide payment services without a valid BoT licence or approval.

Non-bank/non-financial-institution payment service providers receive a licence; banks and financial institutions receive an approval. Licences/approvals are valid for five years unless suspended or revoked.

E-money issuers must obtain an electronic money issuance licence under the Electronic Money Regulations, 2015, satisfy capital adequacy (min. TZS 500 million for non-bank entities), hold a TCRA network/application services licence, and ring-fence funds in a trust account. Since 15 December 2020, new e-money issuance licences are restricted to licensed mobile network operators (banks and pre-existing non-MNO issuers are grandfathered).

The Bank of Tanzania officially launched the Tanzania Instant Payment System (TIPS) in 2024 as a national, interoperable retail switch connecting banks and mobile money operators. In 2024 it processed 454 million transactions worth ~TZS 29.9 trillion (~US$11.6bn) across 46 participating institutions.

Digital lenders must be licensed as Tier 2 (non-deposit-taking) microfinance service providers under the Microfinance Act, 2018 (Section 16 makes unlicensed lending an offence). BoT issued a Guidance Note on Digital Lenders Under Tier 2 in September 2024 and has cracked down on unlicensed platforms, publishing lists of unapproved lenders.

Cross-border digital payments are additionally subject to the Foreign Exchange Regulations, 2022. There is no dedicated statutory open-banking regime; interoperability is achieved through the BoT-operated TIPS switch rather than a mandated open-API/open-banking framework, and BNPL has no standalone rule (it falls under general lending/microfinance and payments rules).