Everyday individuals, businesses and government trade/exchange goods and services for money. Money is therefore used as main medium of exchange. A payment system can be considered to be a mechanism to move money between a payer and payee.
In Tanzania cash is the most popular medium/instrument of payment. However, other non-cash payment instruments have been introduced including Paper-based instruments (cheques, payment orders, bills of exchange, promissory notes and), Electronic Funds Transfers (EFTs), card payments (credit cards, debit cards, prepaid cards), internet banking, mobile banking, mobile money.
The Bank of Tanzania is empowered by the National Payment Systems (NPS) Act 2015 and the Bank of Tanzania Act 2006 to regulate to regulate and supervise the payment systems services and products offered by both banks and non-bank institutions in Tanzania.
Bank of Tanzania collaborates with various stakeholders in strengthening the safety and smooth run of the payment systems in the country. These stakeholders include: Financial Institutions, infrastructural services providers like telecommunication companies, Consumers of payment systems like individuals, companies and governments, Regulatory authorities in the financial sector like the Dar es Salaam Stock Exchange, Providers of payment services like SWIFT, and operators of payment cards, the Capital Markets and Securities Authority, Regional and International Financial authorities like the East African Community, International Monetary Fund and the World Bank.