Visa, Maxcom Team Up for Fresh Mobile Payments Run in Africa

August 20, 2024         By: Steven Anderson

It’s easy to say that we don’t think much about Tanzania in the mobile payments market. Overlooked markets, however, often become opportunities, and this time is no different. Now, Visa and Maxcom are getting together on a new strategic partnership announced by Visa to open up new mobile payments opportunities in the Tanzanian market.

With the new partnership, over 30,000 retailers and 20,000 local agents in Tanzania will be able to connect to mobile payments, whether as a means to accept it, or use it as a means to take cash deposits and make withdrawals. Consumers will be able to make payments directly to merchants, and sending money to friends or family will be a comparatively simple matter. The technology is said to link directly to a bank account, which basically takes what’s already there and makes it more accessible.

Maxcom was eager to provide users with a simpler and more reliable way to make payments in Tanzania, and also accept those payments, so turning to Visa was essentially second nature. Maxcom was already spotted working with banks and merchants to drive mobile payments, but the work with Visa should only ramp things up still further.

Sunny Walia, Visa general manager for East Africa, noted “…Our partnership with Maxcom Africa will ensure that Tanzanians can pay using Visa on their mobiles at over 30,000 new retailers. This partnership reinforces Visa’s commitment to expand mobile payments acceptance worldwide. We are rolling out this strategic partnership as we lay the foundation in the Tanzanian market for an upcoming launch of Visa on mobile.”

While it’s always a treat to see mobile payments expand, there’s a distinct downside here. This is mobile payments that appears to connect directly to a bank account, and that can be somewhat dangerous. For many people, the bank account is literally that person’s life savings. Making it directly interfaced can be convenient, but also very risky. It would take some impressive security to make this sufficiently palatable to users, though there’s also the possibility of setting up a second separate account specifically for mobile payments.

This should ultimately work well; the Tanzanian market likely wants mobile payments and this does provide. It’s going to take a little work to make it really worthwhile, though.