How Money Transfers from a Bank Account to a Mobile Wallet in Tanzania

The “Bank to Mobile” transfer process is a seamless flow of ledger updates, API interactions, and regulated settlements.

Simplified Overview

1️⃣ Start Transfer: You initiate the transfer via your bank’s app, USSD, or ATM.

2️⃣ Debit Account: The bank’s system verifies your credentials, checks your balance, applies any limits, and debits your account.

3️⃣ Send Request: The transfer request goes through TIPS, which credits the mobile operator’s settlement account and sends transaction details (including the recipient’s mobile number) to the operator’s API to ensure the correct wallet is credited.

4️⃣ Credit Wallet: The mobile operator verifies the wallet, applies limits, credits the wallet’s ledger, and sends a confirmation SMS.

5️⃣ Settle Funds: Funds are settled instantly in Bank of Tanzania (BoT) accounts via TIPS or later through TIPS reconciliation.

Insights for Industry Experts

Atomic Transactions: Ledger updates are all-or-nothing—both debit and credit succeed, or the debit is reversed.

TIPS Role: Facilitates real-time interoperability and settlement between banks and mobile operators in BoT accounts.

Direct APIs: Some integrations use direct APIs, but settlement may occur in batches.

Compliance: Both bank and operator perform AML/CFT and KYC checks before finalizing the credit.

In essence, it’s coordinated ledger updates, not physical cash movement.