Choosing Your Financial Tools in Tanzania: Mobile Money, Banks, and Gateways Explained (2024/2025 Data)

Tanzania's financial world is buzzing! Gone are the days when banking was just about visiting a physical branch. Today, your mobile phone is your wallet, your bank, and your payment terminal, all rolled into one. Mobile money is king, reaching an incredible number of people, while traditional banks are stepping up their digital game.And behind the scenes, payment gateways are making online shopping and paying at stores smoother than ever. 

But with so many options – M-Pesa, Mixx, Airtel Money, CRDB, NMB, Pesapal, Selcom, and more – how do you choose what's right for you? This post dives into the data from our recent analysis, comparing the top mobile money services, banks, and payment gateways in Tanzania to help you make informed decisions about managing your money in 2024 and looking ahead to 2025.

Mobile Money: The Everyday Champion

Let's face it, mobile money has changed the game in Tanzania. It's everywhere!

• Incredible Reach: By the end of 2024, there were a staggering 63.2 million active mobile money subscriptions, a big jump of over 17% from 2023.That means around 83% of Tanzanians had access by late 2023.This isn't just about numbers; it's about bringing financial services to people who might not have easy access to traditional banks, especially in rural areas. 
• Powering the Economy: Mobile money isn't just for sending cash to family. It's a major economic force. In 2024, Tanzanians made over 6.4 billion mobile money transactions, worth nearly TZS 199 trillion! That's a huge increase from the previous year and shows how vital it is for daily life and business. It's even estimated to have boosted Tanzania's GDP by about 8.2% in 2023. 

Who are the Big Players?

The market is lively, but a few names stand out (based on late 2024/early 2025 data):

1. M-Pesa (Vodacom): Still the leader, holding around 37-39% of the market. 
2. Mixx by Yas (formerly Tigo Pesa): A strong second, with about 30-32%. Remember, Tigo Pesa rebranded to Mixx after an acquisition. 
3. Airtel Money (Airtel): A major player, holding roughly 20-30%. 
4. HaloPesa (Halotel): Holds around 7-9%. 
5. T-Pesa (TTCL): Has a smaller share, about 2-3%. 
6. AzamPesa: A newer, independent player gaining traction, but still under 1% market share as of mid-2024. 

Together, M-Pesa, Mixx, and Airtel Money control nearly 89% of the market, showing it's concentrated but still competitive. 

What Can You Do With Mobile Money?

Pretty much all your daily financial tasks:

• Send/Receive Money (even between different networks like M-Pesa to Airtel, though maybe at a slightly higher cost). 
• Pay Bills (LUKU electricity, water, TV, taxes, government services). 
• Buy Airtime & Data. 
• Pay Merchants (Lipa Kwa Simu/QR codes at shops, restaurants, online). 
• Cash-In/Cash-Out (Deposit/withdraw cash via agents or even some ATMs). 
• Save Money (Services like M-Koba or Tigo Pesa Kibubu). 
• Get Small Loans/Overdrafts (Like M-Pawa, Songesha, Nivushe). 
• International Money Transfer (Send/receive across borders). 
• Link to Bank Accounts. 

Comparing the Options: What Matters to You?

• Fees - The Big Question: This is often the deciding factor.
  • What costs money? Usually sending money (especially to other networks), withdrawing cash, and sending to banks. Fees often depend on the amount you send. 
  • Government Levies: Remember the government levy? It was removed for transfers in the 2023/24 budget but still applies to cash withdrawals (though reduced).Fee charts often show the provider fee and levy separately. 
  • What's often free? Depositing cash, checking your balance, receiving money, and sometimes specific bill payments. AzamPesa offers free transfers within its network, and Selcom Pesa has free Selcom-to-Selcom transfers and a unique daily deal. 
  • Paying Shops (Lipa Kwa Simu): Generally, you shouldn't be charged extra by the provider for paying a merchant. The government also banned merchants from adding extra fees for digital payments. However, sending to business numbers (Lipa Namba) might sometimes have different fees than sending to personal numbers, which isn't always clear on standard tariff sheets. 
  • Cost Comparison (Example: Sending TZS 5,000):
    • M-Pesa: TZS 130 (same network), TZS 180 (other network), TZS 1,004 (cash out), TZS 800 (to bank). 
    • Mixx by Yas: TZS 130 (same network), TZS 180 (other network), TZS 1,004 (cash out), TZS 800 (to bank).
    • Airtel Money: Likely similar to M-Pesa/Mixx due to interoperability pricing, around TZS 130 (same), TZS 180 (other), TZS 1,004 (cash out), TZS 800 (to bank) (based on older tariff).  
    • HaloPesa: TZS 0 (same network), FREE LUKU payment.Other fees vary.  
    • AzamPesa: TZS 54 (same network), TZS 788 (other network), TZS 68.85 (cash out), TZS 340 (to bank). Noticeably cheaper for P2P and cash-out in this example.
    • Selcom Pesa: TZS 0 (same network), TZS 500 (first daily transfer to bank/wallet/till, next 4 free), TZS 500 (to bank - if first transfer).Very cheap for Selcom-to-Selcom and potentially for multiple daily external transfers. (Note: Fees are indicative based on available 2023/2024 data and include levy where applicable. Always check current official tariffs.)  
• Accessibility - Agents Everywhere: The vast network of mobile money agents (over 1.47 million in 2024!) is crucial for depositing and withdrawing cash, especially outside big cities. While specific numbers per provider weren't readily available in recent reports, M-Pesa, Mixx, and Airtel likely have the largest networks.  
• Ease of Use - USSD vs. App:
  • USSD (dialing *150*...#): Works on any phone, no data needed. Great for basic phones and universal access. Can be a bit slower.  
  • Smartphone Apps (M-Pesa App, Mixx App, MyAirtel, HaloPesa App, AzamPesa App, Selcom Pesa App): More visual, faster, often with extra features like QR code scanning, better transaction history, contact integration. Needs a smartphone and data. App quality can vary. HaloPesa's app adds OTPs for extra security. 
• Security: Your money is protected by your secret 4-digit PIN. Providers follow 'Know Your Customer' (KYC) rules, often needing your NIDA ID. There are transaction limits for safety. If you send money to the wrong number, reversals are usually possible (but fees might not be refunded).Customer support is available via call centers, digital channels, and agents. 

Which Mobile Money Service is Best for You?

• M-Pesa: Go-to for the widest reach, reliability, and full features if standard fees are okay.
• Mixx by Yas / Airtel Money: Solid alternatives with large networks and similar services. Look out for potential bundles or partnerships.
• HaloPesa: Best if you often send money to other Halotel users (free!) or want free LUKU payments.
• AzamPesa: The budget champion for P2P transfers (especially AzamPesa-to-AzamPesa) and potentially bank transfers. Great if cost is your main concern and network access works for you.
• Selcom Pesa: Very attractive for low transfer costs (free within Selcom, TZS 500 for first daily external transfer then 4 free) and the bonus of a linked Mastercard for wider ATM/shop use.

Banks: The Foundation for Bigger Financial Needs

While mobile money handles the daily hustle, banks are the bedrock for larger financial activities in Tanzania, holding the bulk of the nation's financial assets (TZS 63.5 trillion in 2024). 

• Banks vs. Mobile Money: Think of mobile money for everyday spending and banks for:
  • Receiving salaries or large payments. 
  • Formal savings, like fixed deposits earning interest. 
  • Getting bigger loans (personal, home, business). 
  • Using cheques. 
  • More complex financial planning.
• The Lines are Blurring: Banks aren't just brick-and-mortar anymore. They have invested heavily in digital:
  • Mobile Apps & USSD: Top banks offer apps and USSD banking (*150*...#) similar to mobile money operators. 
  • Seamless Integration: Crucially, you can easily link your bank account to your mobile wallet (M-Pesa, Mixx, Airtel, etc.) and transfer money back and forth. This is key – use your bank for savings/salary, then move funds to your mobile wallet for daily use.  
  • New Initiatives: Systems like TIPS (Tanzania Instant Payment System) aim to make transfers between banks and wallets even smoother and cheaper. Banks like NMB are even creating low-cost accounts (NMB Pesa) specifically to attract mobile money users. 

Who are the Top Banks for Personal Use?

The banking scene has many players, but three large banks dominate the retail space:  

1. CRDB Bank Plc: The largest by assets (TZS 16.59 trillion end of 2024). 
2. NMB Bank Plc: Second largest (TZS 13.73 trillion end of 2024), known for profitability and digital focus. (CRDB and NMB together hold nearly half the market's assets).  
3. National Bank of Commerce (NBC): Third largest (TZS 3.6 trillion end of 2023), part of the Absa Group. 

Comparing the Top Banks:

• Digital Access:
  • CRDB: SimBanking (App & *150*03#) offers transfers (including to all major mobile wallets), bill pay, loans (Salary Advance), Tembo Points loyalty. Also has Internet Banking.  
  • NMB: NMB Mkononi (App & *150*66#) provides transfers (including to MNOs), bill pay, cardless ATM withdrawal (PesaFasta), quick loans (Mshiko Fasta up to TZS 500k). Also has Internet Banking and innovative QR Pay by Link with Mastercard. 
  • NBC: Offers NBC Mobile Banking (mainly USSD *150*55#, app likely exists but fewer details found), Internet Banking, standard ATM services, and some deposit-taking ATMs. Mobile money integration exists. 
• Fees - What You Might Pay:
  • Monthly Fees: Can vary. NMB's Pesa Account is free. CRDB's Normal Savings is TZS 2,000/month, NMB's Personal Account is TZS 1,800/month, CRDB's Personal Current is TZS 15,340/month. Several CRDB/NMB savings accounts (student, women, etc.) are free. NBC fee details were less available in the study. 
  • ATM Withdrawals (Example: TZS 50,000):
    • CRDB (Own ATM): TZS 1,500. 
    • NMB (Own ATM): TZS 1,400. 
    • CRDB (Other Local Bank ATM): TZS 4,720. 
    • NMB (Other Local Bank ATM): TZS 3,540. 
    • NBC: Fees not found in reviewed snippets. 
  • Mobile Money Transfers (App/USSD, Example: TZS 50,000):
    • CRDB: TZS 5,300. 
    • NMB: TZS 5,500. 
    • NBC: Service exists, but specific fees not found.(Note: Fees based on 2024 tariff guides. Always check current bank fees.)  
• Accessibility - Branches, ATMs, Agents:
  • CRDB: Extensive network - ~250-260 branches, ~550-680+ ATMs, ~20,000-36,000+ Wakala agents. 
  • NMB: Claims largest ATM/agent network - ~230-241 branches, ~700-750+ ATMs, ~44,000+ Wakala agents, present in almost all districts. 
  • NBC: Smaller network reported - ~51 branches, ~230+ ATMs.Agent numbers not specified.  

Which Bank is Best for You?

• CRDB & NMB: Both are excellent choices offering wide physical and digital reach, full services, and strong mobile money links. NMB might appeal more if you value the absolute largest ATM/agent network, specific digital features like Mshiko Fasta loans or QR Pay by Link, or the very low-cost NMB Pesa account. CRDB has its Tembo Points loyalty program.
• NBC: A solid option if its network suits you, or if Absa Group links are important. Check their current fees directly as details were limited in our analysis.

Payment Gateways: The Unseen Connectors for Shopping

Ever wonder how your mobile money or card payment goes through when you shop online or tap at a store? That's where payment gateways come in. They are the secure tech bridges connecting you, the merchant, and the financial networks. 

• Why They Matter: They allow businesses, big and small, to accept various digital payments (mobile money, cards) securely, which is vital for e-commerce and moving away from cash. 
• Key Players in Tanzania: You might encounter gateways like Pesapal, DPO Group (now part of Network International), Selcom, AzamPay, Flutterwave, ClickPesa, or Cellulant when paying merchants. 
• What Matters to You (the User):
  • Supported Methods: Does the merchant's gateway accept your preferred payment? Good gateways in Tanzania support all major mobile wallets (M-Pesa, Mixx, Airtel, HaloPesa, AzamPesa) and cards (Visa, Mastercard).DPO/Network offers a particularly wide range including international options like Amex and PayPal. Selcom is strong on local wallets and QR codes. 
  • Cost: You shouldn't be charged extra fees by the gateway or the merchant for paying digitally. Pesapal even offers zero fees for users on its own Pesapal Mobile app. However, the fees merchants pay to the gateway can indirectly affect prices. 
  • Security: Reputable gateways (Pesapal, DPO/Network, Selcom, AzamPay) meet high security standards like PCI DSS to protect your data. 

Essentially, you don't choose the gateway directly, but the merchant does. A good merchant choice means a smooth, secure payment experience for you, accepting the methods you prefer.

Making the Right Choice: Your Financial Toolkit

So, how do you pull this all together?

• Mobile Money: Essential for daily life – quick transfers, bills, airtime. Its accessibility is unmatched. Choose based on who you transact with most often and which provider offers the best fees for your common transactions (check the TZS 5,000 comparison above!). Consider AzamPesa or Selcom Pesa if low transfer cost is key.
• Bank Account: Highly recommended for managing larger sums, salaries, formal savings, and loans. Choose based on network convenience (branches/ATMs/agents), digital features, mobile money integration, and account fees (compare CRDB, NMB, NBC based on the data). NMB Pesa is a great low-cost starting point for formal banking.
• Using Both: The best strategy for many is to use both! Keep your main funds/savings in a bank, link it to your preferred mobile wallet, and transfer money to the wallet for daily spending. This gives you the best of both worlds – security and convenience.
• Online/Shop Payments: Look for merchants who accept your preferred mobile wallet or card via trusted gateways. Remember, you shouldn't pay extra surcharges.

Key Things to Consider When Choosing ANY Service:

1. Cost: Compare fees for your typical usage. Use the data here as a guide, but always check official, current tariffs.
2. Convenience: How easy is the app or USSD menu? Does it have features you need (QR, history)? How easy is bank-wallet transfer?
3. Accessibility: Is the agent/branch/ATM network good where you live and work?
4. Services: Does it offer everything you need (billers, loans, international options)?
5. Security: Use strong PINs, be aware of KYC, understand dispute processes.
6. Support: Are help channels reliable?

Tanzania's financial landscape is dynamic and empowering. By understanding the strengths and costs of different mobile money providers and banks, and how payment gateways fit in, you can build a financial toolkit that works best for your needs and budget in 2025 and beyond.

Disclaimer: This blog post is based on data compiled in a comparative analysis report referencing sources up to early 2025. Fees, market shares, and service features can change. Always verify current information directly with the service providers. (Data accurate as of time of analysis: Tuesday, April 15, 2025)