Tanzania-based National Bank of Commerce (NBC) has launched a new Visa debit card to allow its customers to perform online payments in USD without any charges. According to company representatives cited by ippmedia.

com, the newly introduced USD Visa debit card mitigates cash-related risks by making transactions more convenient. They also stated that more than 2,000 Visa ATMs in Tanzania are compatible with this card, and more than 24,000 Visa-enabled merchants in Tanzania currently accept it. As far as security is concerned, the cards benefit from up-to-date 3D, Chip, and PIN technologies.

Officials from NBC Bank have also revealed that, while the card is denominated in USD, it can be used to settle purchases in other currencies. These can refer to payments for various retailers, as well as online fees for recurring services and online subscriptions. Debit card integration in Tanzania As seen in a payment systems overview published by the Bank of Tanzania, the most popular instrument of payment in the country is cash.

As for non-cash payment instruments, these include Electronic Fund Transfers, paper-based instruments such as cheques, card payments, and internet banking. According to a payment method report published by Adyen, more than 40% of Tanzania’s adult population relies on mobile money or peer-to-peer payment systems. These systems are particularly useful for unbanked citizens and for those living in rural areas.

As for debit cards, the same report states that card penetration in Tanzania follows an upward trend. For example, in 2020, entities such as NMB Bank and Mastercard planned to reduce the cash reliance of up to 300,000 Tanzanians. In other African states, such as Nigeria, debit cards occupy a much larger market share, as they account for more than 29% of total ecommerce sales.

Following a series of trials, the Bank of Tanzania has launched the Tanzania Instant Payment System (Tips) in February 2022. The system operates in card-based payments, internet banking, mobile banking, and e-economy schemes. .