A practical guide to integration with Tanzania’s mobile money providers

What to expect, Key Features

Tanzania is the largest mobile money market in Africa.

By December 2022, the total value of mobile money transactions had reached $60.2 billion. With a growth rate of 14.3%, the Tanzania mobile money market is estimated to be worth $138.2 Billion by 2028.

It’s evident that businesses engaging in Tanzania should embrace mobile money services. Mobile money enables businesses to reach a wider customer demographic, especially those without access to traditional banking.

At present, mobile money services are mainly used to transfer value from one person to another, settling payments for products and services, paying utility bills, distributing employee salaries, taxi fares, facilitating micro-credit, managing savings and providing micro-insurance.

The process of integrating with Mobile Network Operators (MNOs) should be approached with caution and strategy. There is a risk of wasting the business’s financial and time resources. If no plan is in place, integration to a single operator could extend over several months. Understanding the following considerations should steer you away from the most common mobile money integration issues;

Registrations
To integrate with an MNO, all businesses must first register with that MNO. Registration requirements vary from one operator to the next; follow up with each MNO to learn more about their registration procedure and requirements. The following are most common requirements for registration;

• Copy of Valid Certified business License
• Certified Copy of Valid TIN
• Certified Copy of Valid Certificate of registration
• Certified Copy of Valid Certificate of incorporation
• Certified Copy of Nida Ids, for Decision maker, Personal responsible for payment and Contact person.
• Annual return / Current Audited Financial report

Communications
Effective MNO Integration relies heavily on communication, with Email serving as the primary formal channel. For collaborative communication and technical synchronisation Skype and Microsoft Teams are used. Given that MNO Integrations typically encompass multiple teams, progress might encounter some delays; the key here is patience, empathy, and constant follow-up.

Products
MNO’s offer different products that ultimately require different integrations. The Most common services provided are Multi-Network Lipa Number (TILL Number), USSD-PUSH, Bill-Pay, Mobile-Money Disbursements and Bank Disbursements. Before incorporating mobile money into their operations, businesses should analyse the available mobile money services to ensure compatibility with their business needs.

Digital Wallets (Collection vs Disbursement)
Mobile Network Operators provide a dual-wallet solution that includes a Collection Wallet for accepting payments and a Disbursement Wallet for initiating outgoing payments. A Collection Wallet typically receives payments only from subscribers of that specific MNO, whereas a Disbursement Wallet can transfer monies to subscribers of any MNO due to MNO interoperability. Subject to formal requests, funds can be transferred from the Collection Wallet to the Disbursement Wallet or directly to the business’s bank account. Also, deposits of cash into the MNO’s trust bank accounts at local banks may be made to fund Disbursement Wallets.

Transaction Fees
Each MNO has its own set of fees and price structure. Understanding mobile money service prices is critical for businesses to make better decisions, optimise costs, maintain transparent customer relationships and effectively integrate mobile money solutions into their operations. Analysis should cover charges incurred by both the final client and the business when moving funds to and from MNO wallets.

UAT Testing
UAT testing is part of the integration process, which involves testing for all possible payment transfer scenarios and edge cases. UAT Testing is done on both sandbox and production environments. UAT should be looked at carefully because it ensures the integrity of the integration.

Web Portals
MNOs offers web portals that can be used to check payment status, withdraw funds from collection accounts, and generate/export transaction statements and reports. To ensure proper use of the portals, MNOs provide a user training step at the end of the integration process.

API Documentation
Before the integration phase, mobile network operators will share API documentation. Depending on the MNO, guidance and assistance are facilitated through the communication channel mentioned earlier. Some MNOs also have developer web portals, which provide resources, tools, documentation, and support to developers.

Integration Environments (Sandbox vs Production)
Sandbox and Production environments are available from all MNOs.
The sandbox environment is utilised for testing purposes, and no cash are moved. Testing numbers for various scenarios may be provided, as well as the possibility to provide your own. After moving into production, the sandbox could be shut down. The production environment is a live environment with actual money movement. A system that integrates with MNO should have sandbox and production environments.

Host-to-Host VPN Connection
Some MNOs require the establishment of a Host-to-Host VPN (Virtual Private Network) link between the MNO network and a business network in order for them to communicate and exchange data securely over the internet. Before setting up a VPN connection, it is best to understand the VPN connection requirements of each MNO. The cost of establishing and maintaining VPN connections is something to keep an eye on.

Other Common Tech Stack & Technologies
In addition to VPN connection and communications channels mentioned above, when integrating with MNO’s expect to interact withUSSD, XML scripting for API requests, implementation of SSL certificates for secure HTTPS connections, utilization of OpenAPI Specifications, RESTful APIs, and network diagnostic utilities (such as traceroute, telnet, and ping) to mention a few. Knowledge on these aspects will be valuable throughout the integration process.

Services for mobile money Payment collection and distribution services are made more convenient and seamless via integrations. Customers can make real-time payments without leaving the company’s website or online store. Business administrators can also use integrations to initiate and handle payments directly from their existing business portals/dashboards.

It’s understandable if this all feels a little overwhelming (because it is) and you’d rather spend your time on business rather than technical integrations. Join ClickPesa today and take advantage of;

• Readily Available Mobile Money Payment Collection (TigoPesa, Mpesa, AirtelMoney, HaloPesa, T-Pesa)
• With Integration to pre-existing accounting software and online shops/e-commerce platforms
• Payments Collection through Credit and Debit Cards (Visa, Mastercard, UnionPay)
• Free payment collection tools (Online Invoices, Payment Pages, and Payment Requests)
• Instant Payouts (Single/Batch) to bank accounts and mobile wallets
• With No Subscription Fee