Fincra, a Nigerian payment platform offering solutions for online and offline payments, multicurrency accounts, and global transfers, has secured a payment system provider license from the Bank of Tanzania.
The license under the 2015 Payment Systems Licencing and Approval Regulations, authorizes Fincra to deliver secure, scalable, and compliant payment solutions to businesses and consumers in Tanzania.
Following this milestone, Fincra will roll out its comprehensive payment services, including local collections, business payouts, and API-driven real-time payment infrastructure. These offerings are tailored to support sectors like fintech, logistics, retail, travel, and remittances, helping businesses streamline operations and expand across borders.
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“We’re excited to secure this license from the Bank of Tanzania,” said Wole Ayodele, Fincra’s CEO.
Fincra’s recent securement of a payment provider license in Tanzania is coming after it secured a TPPP provider license in South Africa, in collaboration with Nedbank last month. A significant step toward realizing its mission to build the rails for an integrated Africa.
The payments market in Tanzania is vibrant and rapidly evolving, driven by the widespread adoption of mobile money, increasing internet penetration, and a growing push for financial inclusion. The country achieved full mobile money interoperability by 2016, allowing users of different providers (e.g., M-Pesa, Tigo Pesa, Airtel Money) to transact directly with each other, a global first.
Currently, it is one of the world’s leading mobile money markets, with over 35 million mobile money subscribers, representing more than half of the country’s population of approximately 60 million. In 2021, the mobile money market was valued at US$54.5 billion, with projections to reach US$120.4 billion by 2027.
While Tanzania’s payments market, is advanced in mobile money (with US$82.3 billion in transactions in 2024), it is also faced with several challenges.
1. Regulatory and Compliance Barriers:
Tanzania’s fintech startups face stringent and costly regulatory requirements, often before achieving product-market fit. The regulatory environment can stifle innovation, particularly for new entrants navigating complex compliance frameworks.
Fincra’s Solution: Fincra secured a PSP license from the Bank of Tanzania, ensuring compliance with local regulations. It operates under the highest compliance standards across its operational countries, mitigating risks through robust systems and dedicated account managers to guide merchants. The company also benefits from Tanzania’s Fintech Regulatory Sandbox (launched in 2024), which allows testing of innovative solutions in a controlled environment, reducing regulatory hurdles.
2. Limited Interoperability for Merchant Payments:
While person-to-person (P2P) mobile money transactions in Tanzania are fully interoperable, merchant payments often lack seamless interoperability across different financial service providers, leading to mismatches in payment acceptance.
Fincra’s Solution: Fincra’s payment gateway integrates multiple payment methods (e.g., mobile money, cards, bank transfers), enabling merchants to accept payments from customers using various platforms like M-Pesa, Tigo Pesa, and Airtel Money. Its APIs facilitate interoperability by connecting businesses to Tanzania’s Instant Payment System (TIPS), which processed TZS 29.9 trillion in 2024, ensuring seamless transactions.
3. High Transaction Costs:
High operational and commission costs discourage digital payment adoption, particularly for small businesses and SMEs.
Fincra’s Solution: Fincra emphasizes low-cost transactions with transparent pricing and no hidden fees. Its virtual accounts and payout solutions reduce the cost of cross-border and local transactions, making digital payments more accessible for Tanzanian businesses, including SMEs, which account for significant economic activity.
Looking ahead
Fincra’s launch in Tanzania capitalizes on the country’s mobile money dominance and growing digital payments market. By addressing challenges like regulatory barriers, interoperability, high costs, talent scarcity, cash dependency, security risks, and funding constraints.
It positions itself as a key player in advancing financial inclusion and cross-border payments. Its low-cost, secure, and accessible solutions, backed by regulatory compliance and strategic partnerships, make it well-suited to thrive in Tanzania’s dynamic payments landscape.