Understanding TIPS: How the Bank of Tanzania is Revolutionizing Digital Payments

The Tanzania Instant Payment System (TIPS) is an innovative platform introduced by the Bank of Tanzania (BOT) to enable real-time, low-cost, and secure payments across different financial service providers. TIPS aims to break the silos between banks, mobile money operators, and other payment service providers, allowing seamless interoperability.

Simply put, with TIPS, a person using one bank or mobile network can instantly send money to someone using another bank or mobile wallet — at an affordable cost and in real-time.

Before TIPS, sending money between different banks or mobile networks often involved delays, extra fees, and complicated processes. BOT introduced TIPS to:

✅ Enhance financial inclusion – making digital payments accessible and affordable to everyone.

✅ Reduce transaction costs – lower fees compared to traditional transfers.

✅ Promote interoperability – connecting all payment providers under one national system.

✅ Support a cashless economy – making payments faster and more convenient.

• Step 1: A user initiates a payment through their bank app, mobile wallet, or USSD.
• Step 2: The request goes to the TIPS platform, which verifies and processes it.
• Step 3: Funds move instantly from the sender’s account to the receiver’s account, regardless of their bank or mobile network.
• Step 4: Both parties receive confirmation within seconds.

• Instant Transactions – No waiting for hours or days; money reflects immediately.
• Low Fees – More affordable than traditional inter bank transfers.
• Secure – Managed and regulated by BOT with high security standards.
• 24/7 Availability – Works any time, including weekends and holidays.
• Wide Reach – Works across banks, mobile money, and other financial service providers.

• Individuals – for sending money to family or friends using different banks or networks.
• Businesses – for receiving payments instantly from customers using different platforms.
• Government Agencies – for efficient collection of taxes and fees.

TIPS is not just a payment system — it’s part of BOT’s larger strategy to digitize the economy, support financial innovation, and boost trust in digital transactions. As more providers integrate with TIPS, we can expect faster, cheaper, and more inclusive financial services for all Tanzanians.