Tanzania: Salary Payments Through Handsets Made Possible in Tz

Employers in Tanzania will soon start paying salaries through mobile accounts as Tigo develops an application which will facilitate the process.

The mobile operator also said yesterday that the interface will allow online purchase and pay through their Tigo Pesa accounts.

The company said it had developed three functions to facilitate such transactions. The Tigo head of mobile financial services for Africa, Mr Ruan Swanepoel, told journalists here that the company would also launch another application to enable corporate clients to make payments to a number of employees at a go.

He noted that the innovation to introduce the applications was driven by the fact that many Tanzanians do not have credit cards through which they can purchase goods online.

"We hope this will be a game changer. We have tested these APIs [application programme interface] and we have assured ourselves that they are safe, reliable and flexible," he said, hoping that other mobile phone companies would follow suit. He said the three applications would enable people to avoid cash out of their money.

"People will now be able to get their money electronically and spend it electronically without the need to cash out, something which increases transaction costs and is also risk," he said. API is software which enables interface between two different entities which use different systems to connect and be compatible to one another.

MFS business analyst Godfrey Nkayamba said any online seller would be able to use the Tigo pesa application to enable his client pay for their purchases online.