01 — OverviewExecutive Summary
In the quarter ending June 2026, Tanzania's mobile money accounts grew 7.5% to 87.05 million — more active wallets than Tanzania has adults — and processed over 2.1 billion transactions, up 5.38% on the prior quarter. That scale, reached in barely a decade since mobile money's launch, now rivals or exceeds the customer reach of the entire formal banking sector by transaction count and active-user footprint, even though banks still hold more total assets and issue the bulk of formal credit.
This report asks a direct question: as mobile money keeps growing faster than bank account penetration, is it complementing Tanzania's banking sector — feeding it new customers and float — or substituting for it, pulling everyday cash flow away from deposit accounts banks rely on to fund lending? The answer, based on TCRA's own data, is: both, and the balance between the two is now one of the more consequential open questions in Tanzania's financial-sector policy.
- Mobile money's transaction growth is real but decelerating — from 21.6% quarter-on-quarter growth in late 2025 to 5.38% now, signalling a shift from an acquisition phase to a maturity phase.
- Three providers control 89% of accounts — M-Pesa, Mixx by Yas and Airtel Money — concentrating both commercial power and systemic risk in a handful of telecom-linked platforms.
- Fraud attempts fell 25.3% quarter-on-quarter even as volumes rose, a sign the payment rails underpinning this growth are becoming more trustworthy, not less.
- The rest of the telecom sector — cheap data, expanding 4G, near-universal mobile coverage — is the infrastructure that made this possible, and continues to expand it.
Before you go further — the bigger picture
Financial inclusion, domestic revenue mobilisation and the depth of Tanzania's formal financial system — all touched on below — sit at the centre of a bigger question TICGL has been tracking: the policy gaps standing between Tanzania's current growth path and its Dira 2050, US$1 trillion ambition.
Read: What's Next for Tanzania's Economy? The Policy Gaps Keeping $1 Trillion Out of Reach by 2050 →This piece complements TICGL's Is Tanzania's Economy Growing?, which examines the macro numbers behind Tanzania's growth story. Read the two together for the full picture of how digital finance connects to headline GDP growth.
02 — The DataMobile Money in Numbers: Accounts, Transactions, Providers
Tanzania's mobile money ecosystem processed 2,098,706,145 transactions in the quarter ending June 2026, through 87.05 million active accounts — up from 80.98 million just three months earlier. For a population of roughly 68–69 million, this means the average adult effectively holds more than one active mobile money wallet.
Mobile Money Accounts by Provider
Mobile Money Transactions by Provider
| Provider | April | May | June | Share (June) |
|---|---|---|---|---|
| M-Pesa (Vodacom) | 32,840,183 | 34,394,537 | 35,313,186 | 40.6% |
| Mixx by Yas | 25,928,787 | 26,882,220 | 27,853,189 | 32.0% |
| Airtel Money | 14,164,833 | 14,331,645 | 14,307,193 | 16.4% |
| HaloPesa | 7,932,463 | 8,473,702 | 8,796,709 | 10.1% |
| T-Pesa (TTCL) | 596,453 | 631,098 | 686,101 | 0.8% |
| Azam Pesa | 81,829 | 106,957 | 89,711 | 0.1% |
| Total | 81,544,548 | 84,820,159 | 87,046,089 | 100% |
Mobile Money Accounts — Quarterly Trend
Mobile Money Transaction Growth Rate
Mobile Money: Five-Year Account Growth
Mobile Money: Five-Year Transaction Volume
The five-year picture explains why this matters for banking. Active mobile money accounts grew from 35.29 million in 2021 to 76.47 million in 2025 — a compound annual growth rate of roughly 22.9% — while annual transaction volumes grew from 3.75 billion to 6.31 billion, a CAGR of about 13.8%. But look closely at the growth-rate chart: quarter-on-quarter transaction growth has decelerated sharply, from 21.60% (Sep 2025) to 9.40% (Dec 2025), 7.40% (Mar 2026) and now 5.38% (Jun 2026) — the classic signature of a market shifting from acquiring new users to deepening usage among existing ones. That shift is exactly where the mobile-money-vs-banking question becomes sharpest: what do 87 million wallet-holders do next — keep transacting only in mobile money, or graduate into savings, credit and insurance products that connect them to the formal financial system?
03 — The Core QuestionMobile Money vs Banks: Who's Really Winning Tanzania's Wallet?
Tanzania's central bank and commercial banking system do not publish transaction-level statistics inside TCRA's communications report, so a precise, apples-to-apples comparison isn't possible from this dataset alone. What TCRA's numbers do make clear is the order of magnitude gap in reach and transaction frequency between the two systems — and that gap is the real story.
📱 Mobile Money
- 87.05 million active accounts (used in the last 90 days)
- 2.1 billion+ transactions in one quarter (roughly 23 million transactions per day)
- Accessible via any basic phone — no minimum balance, no branch visit, no ID-heavy onboarding
- Near-universal reach: 167% telephone penetration, mobile money agents in almost every ward
- Growth rate: transactions still expanding, but decelerating (5.38% QoQ, down from 21.6%)
🏦 Formal Banking
- Bank account penetration remains a fraction of mobile money's reach, concentrated in urban centres
- Physical branch and agent-banking footprint far smaller than mobile money's agent network
- Requires documentation, and often a minimum balance, to open and maintain an account
- Holds the bulk of formal savings, term deposits and long-term credit — mobile money largely does not replace this function
- Increasingly linked to mobile money via bank-to-wallet transfers, but interoperability is still maturing
Mobile money and banks are not fighting over exactly the same product. Mobile money dominates payments and transfers — the high-frequency, low-value transactions that make up most people's day-to-day financial life. Banks still dominate savings mobilisation, term deposits and formal credit — the lower-frequency, higher-value functions that fund investment and business lending. The risk is not that mobile money "replaces" banking outright, but that it captures and holds liquidity that would otherwise flow into bank deposits, without that liquidity being efficiently recycled back into the formal credit system.
Illustrative: Transaction Frequency, Mobile Money vs a Typical Bank Account
This chart is illustrative: TCRA does not publish comparable bank-transaction-frequency data in this report, so the "typical bank account" bar reflects general retail-banking usage patterns rather than an official Bank of Tanzania figure. It is included to visualise the scale gap in transaction frequency, not transaction value — banks still process far higher-value transactions on average.
- Deposit disintermediation: wages, remittances and trading proceeds increasingly settle in e-wallets rather than bank current/savings accounts, shrinking the low-cost deposit base banks use to fund lending.
- Float sitting outside formal credit markets: unless mobile money trust-account float is efficiently swept into interest-bearing, lendable bank deposits, large sums of liquidity can sit idle relative to their productive potential.
- Concentration risk: 89% of accounts sit with three private telecom-linked providers — an operational failure at any one of them would have near-systemic effects on household liquidity.
- Weaker monetary-policy transmission: the more money that moves through e-wallets rather than the banking system, the harder it becomes for interest-rate policy to reach households and small businesses quickly.
- A ready-made customer funnel: 87 million verified, transacting mobile money users are a natural pipeline for banks and fintechs to convert into savings, micro-credit and insurance customers.
- A built-in credit-scoring dataset: transaction histories from mobile money are already used by several Tanzanian lenders to underwrite micro-loans for people with no formal credit history.
- Falling fraud, rising trust: a 25.3% drop in fraud attempts this quarter, even as volumes rose, is precisely the kind of trust-building that makes people comfortable moving larger balances and formal products onto digital rails.
- Bank-linked wallets already exist: several banks now offer direct mobile-money-to-bank transfers and savings products, meaning growth in mobile money usage can translate into growth in linked bank products if interoperability keeps improving.
04 — TICGL ViewImplications for Tanzania's Financial Sector
On balance, TICGL reads this quarter's data as a net positive for financial inclusion, but one that raises the urgency of specific policy and industry actions to make sure mobile money's growth strengthens, rather than substitutes for, formal financial deepening.
For regulators (BOT & TCRA)
Treat mobile money interoperability, trust-account transparency and outage resilience as macro-financial policy, not just telecom policy. With 89% of 87 million accounts concentrated in three providers, this is now systemically important payments infrastructure that deserves banking-grade prudential oversight alongside TCRA's technical regulation.
For commercial banks
The addressable market is not shrinking — it is moving. Banks that build genuinely seamless wallet-to-account products, mobile-money-based credit scoring, and low-friction savings sweeps stand to convert mobile money's 87 million users into deposit and credit customers rather than losing them to the informal float economy.
For investors & fintechs
With account-acquisition growth decelerating (5.38% QoQ, down from 21.6%), the next wave of value creation sits in merchant payments, embedded credit, savings products and cross-border remittances layered on top of the existing mobile money base — not in signing up more wallet-holders.
For a broader view of how financial-sector deepening fits into the wider debate on Tanzania's growth trajectory and the policy gaps standing between the country and its US$1 trillion, US$7,000-per-capita 2050 ambition, see TICGL's dedicated analysis linked above and in the related reading section below.
05 — Supporting DataFull Communications Sector Dashboard
Mobile money doesn't grow in isolation — it rides on the back of Tanzania's broader telecom expansion. The table below sets the mobile money numbers in the context of the full sector, quarter ending June 2026 vs March 2026.
| Indicator | Mar 2026 | Jun 2026 | Change |
|---|---|---|---|
| Mobile + fixed telephone lines | 111.9M | 117.0M | +4.51% |
| Telephone penetration | 159.8% | 167.0% | +7.2pp |
| Internet subscriptions | 58.97M | 62.79M | +6.48% |
| Data consumed (quarter) | 932 PB | 1,041 PB | +11.65% |
| National voice minutes | 45.44B | 48.82B | +7.44% |
| Domestic SMS | 55.10B | 55.05B | -0.05% |
| Mobile money active accounts | 80.98M | 87.05M | +7.5% |
| Mobile money transactions (quarter) | 1,991,494,385 | 2,098,706,145 | +5.38% |
| Paid decoders (DTH+DTT) | 2.09M | 2.26M | +8.18% |
| Fraud attempts reported | 9,816 | 7,334 | -25.3% |
| Active telecom licences | — | 1,881 | n/a |
06 — Supporting DataThe Connectivity Behind the Mobile Money Boom
Mobile money's growth is only possible because of cheap, widely available mobile data and near-universal phone ownership. In June 2026, the average in-bundle data tariff across all five mobile operators was TZS 2.05 per MB (roughly US$0.81 per GB) — cheap enough to place Tanzania among Africa's more affordable data markets and under the global "1-for-2" affordability benchmark (data costing 2% or less of average monthly income). Out-of-bundle pricing, at TZS 9.35 per MB (roughly US$3.68/GB), remains far more expensive and disproportionately affects casual, lower-income users — often the same users most dependent on mobile money precisely because they lack a bank account.
Mobile & Internet Subscriptions: Trend
Smartphone vs Basic Phone Penetration
Notably, only 44.7% of the population owns a smartphone, while mobile penetration overall (including basic/feature phones) is 83.4% — a reminder that most mobile money transactions in Tanzania still happen over USSD on basic handsets, not banking apps. This is precisely why mobile money has outpaced formal banking in reach: it was built to work on the cheapest, most widely owned device in the country.
Tanzania's international internet gateway capacity stands at 17,690 Gbps, of which only 15.4% is in use — leaving 84.6% spare capacity. Average mobile download speed across 22 measured locations is 14.26 Mbps, with average latency of 76.79ms. 5G population coverage reached 34.18%, but geographic coverage is only 11.34% of Tanzania's land area — meaning both connectivity and mobile-money agent networks remain concentrated where people already live, not evenly across the country.
07 — Supporting DataTrust in the System: Fraud & Network Reliability
Trust is the currency mobile money runs on — and this quarter's data is encouraging. Reported fraud attempts fell 25.3% quarter-on-quarter to 7,334 cases, even as transaction volumes rose. Network quality-of-service compliance averaged 96.6% across operators, with TTCL (98.1%) leading and Halotel (94.5%) trailing.
Fraud Attempts: Quarterly Trend
Fraud Attempts by Region
Rukwa (2,495) and Morogoro (2,129) recorded by far the highest fraud-attempt counts nationally — together over 63% of all reported cases — concentrated in specific districts (Sumbawanga, Rukwa; and Kilombero, Morogoro), useful intelligence for both operators' fraud teams and financial-sector regulators monitoring emerging risk hotspots.
08 — Supporting DataBroadcasting & Postal: Brief Context
Broadcasting
Paid decoder subscriptions rose 8.18% to 2.26 million, with satellite (DTH) now 75.8% of decoders versus 24.2% terrestrial (DTT). Cable TV connections fell 8.18% to 16,347 as households migrate to satellite and streaming. All monitored TV and radio broadcasters met the 60% local-content quota, though only 38% of TV channels fully adhered to their submitted programme schedules.
Postal & Courier
Domestic mail volumes softened (-9.9% sent, -1.6% received) as digital channels substitute for physical mail, while cross-border parcel volumes surged (+40.8% sent, +52.2% received) — a clear signature of rising cross-border e-commerce, itself increasingly paid for via mobile money.
09 — TICGL ViewOutlook: A Fork in the Road for Tanzania's Financial System
Tanzania's mobile money sector has already answered the "access" question — nearly every adult with a phone can now transact digitally. The question this data leaves open is a "depth" question: will the 87 million active wallets, and the transaction data they generate, become the foundation for deeper formal savings, credit and insurance markets — or will they remain a parallel, largely self-contained payments economy that banks struggle to fully connect to? The direction of travel over the next few quarters — interoperability rules, bank-fintech partnerships, and how effectively e-money float is channelled into the formal credit system — will determine which path Tanzania takes, with direct consequences for the depth and resilience of its financial sector, and by extension its Dira 2050 growth ambitions.
10 — Quick AnswersFrequently Asked Questions
Is mobile money bigger than banking in Tanzania?
By transaction count and active-user reach, yes — 87.05 million active accounts processed over 2.1 billion transactions in the quarter ending June 2026, a footprint far exceeding Tanzania's commercial bank account base. By total assets held and formal credit issued, banks remain larger.
How many mobile money accounts does Tanzania have in 2026?
87.05 million active accounts as of June 2026, up 7.5% from 80.98 million in March 2026. M-Pesa, Mixx by Yas and Airtel Money together hold about 89% of the market.
Does mobile money growth hurt bank deposits in Tanzania?
It creates a structural risk of deposit disintermediation if e-money float isn't efficiently channelled back into the formal banking system through trust-account arrangements. As more routine cash flow settles in mobile wallets, banks can see slower deposit growth unless interoperability with banks is strong.
Is mobile money transaction growth slowing down in Tanzania?
Yes — quarter-on-quarter transaction growth decelerated from 21.6% in September 2025 to 5.38% in June 2026, signalling the market is moving from rapid account acquisition to a more mature, usage-intensity phase.
11 — MethodologySources & Notes
- Primary data: Tanzania Communications Regulatory Authority (TCRA), Ripoti ya Hali ya Sekta ya Mawasiliano — Robo Mwaka Inayoishia Juni 2026 ("State of the Communications Sector Report, Quarter Ending June 2026").
- The "mobile money vs bank" transaction-frequency comparison chart is TICGL's own illustrative estimate, clearly labelled, since TCRA's report does not include comparable bank-transaction statistics.
- USD conversions use an indicative exchange rate of approximately TZS 2,600 = US$1 (August 2026).
- This page is an independent analytical summary prepared by TICGL/TERI and does not constitute financial, investment or legal advice.
Muhtasari kwa Kiswahili
Je, Pesa Mtandao Inazidi Mabenki Tanzania? Katika robo mwaka iliyoisha Juni 2026, akaunti za pesa mtandao ziliongezeka kwa asilimia 7.5 kufikia milioni 87.05 — idadi kubwa kuliko watu wazima wote nchini — na kufanya miamala zaidi ya bilioni 2.1 ndani ya robo moja tu. Kasi hii ni kubwa kuliko ukuaji wa akaunti za benki za kawaida, jambo linaloibua swali muhimu: je, pesa mtandao inasaidia kukuza mfumo rasmi wa kifedha, au inauondolea mabenki fedha ambazo zingeweza kuwa amana za benki?
Uchambuzi wa TICGL unaonesha kuwa jambo hili lina pande mbili. Kwa upande mmoja, pesa mtandao imefanikisha ujumuishaji mkubwa wa kifedha (financial inclusion) kwa kasi ambayo mabenki ya kawaida hayajawahi kufikia — watu wengi wanaweza kutuma, kupokea na kuhifadhi fedha bila kuhitaji akaunti ya benki. Kwa upande mwingine, fedha nyingi zinazopita kwenye mitandao ya simu badala ya mabenki zinaweza kupunguza amana (deposits) ambazo mabenki hutegemea kutoa mikopo, hasa ikiwa hakuna muunganiko mzuri (interoperability) kati ya mifumo ya pesa mtandao na mabenki. Watoa huduma watatu — M-Pesa, Mixx by Yas na Airtel Money — wanamiliki asilimia 89 ya soko, hali inayoongeza umuhimu wa usimamizi imara wa Benki Kuu (BOT) na TCRA katika eneo hili.
- Akaunti za pesa mtandao: milioni 87.05 (ongezeko la asilimia 7.5)
- Miamala ya robo mwaka: zaidi ya bilioni 2.1 (ongezeko la asilimia 5.38)
- Watoa huduma watatu wanamiliki asilimia 89 ya soko
- Majaribio ya ulaghai yalipungua kwa asilimia 25.3 — ishara ya kuimarika kwa uaminifu wa mfumo
Chanzo: TCRA, Ripoti ya Hali ya Sekta ya Mawasiliano, Robo Mwaka Inayoishia Juni 2026. Uchambuzi umeandaliwa na Idara ya Utafiti ya TICGL / Tanzania Economic Research Institute (TERI).