In line with Tanzania’s ambition of operating a cashless economy, the National Microfinance Bank (NMB) has partnered with Mastercard to provide digital payment solutions for commercial motorcycle (Boda-boda) riders. Mastercard’s cashless mobile technology, ‘Masterpass QR’ will enable riders to receive payments from customers directly into their NMB bank accounts. The service will be first launched in Dar es Salaam and subsequently in Mwanza, Arusha, Ruvuma, Mbeya and Dodoma in the coming weeks.
“The partnership provides a secure payment gateway for the Boda-boda riders, while positively impacting the economy of the country,” says Jenista Mhagama, the Minister of State (for Policy, Parliamentary Affairs, Labour, Youth, and Employment) in a statement.
Also in a bid to foster a cashless economy in Tanzania, Mastercard signed a partnership with Selcom in 2018 to introduce a range of payment solutions in the country. Its Masterpass QR will now be used to facilitate payments for Boda-boda riders and also ensure that they are financially included in the country’s financial ecosystem.
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Speaking about the development, Ruth Zaipuna; the acting Managing Director of NMB Bank said that the digitization of Boda-boda payment is a key component of NMB’s drive to enhance financial inclusion within the country. “We also understand the obvious security risk of handling cash,” she added.
Customers will be able to conveniently pay for trips through the QR scan or by using the USSD option on their mobile phones. To pay with the Masterpass QR, a customer will have to scan a QR code using NMB’s Mkononi app while the USSD can be accessed by simply dialing *150*66#.
This will encourage the use of technology, as more people will prefer a seamless payment experience rather than spending cash. So far, 1000 Boda-boda riders have been trained on the use of the instant QR payment option. NMB plans to reach over 75000 commercial riders by the next year.
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