New payment systems in Tanzania via cellular phones

Hi every body!
Once again have discovered new cell phones payment system in Tanzania that helps transfer o f cash to various parts of the country even if it is a remote area. A person will just be requiered to be registered from the respective network provider and start using the service. There are three new cash transfer systems namely MPESA, TIGO PESA and AIRTEL MONEY.
So as to get use the services first you need to be registered to a respective network provider and request to deposit hard cash into your account. The hard cash will now be converted into electronic money where you can be able to transfer money from your sim card to another person but he/she must belong in the same network provider say MPESA TO MPESA in terms of Vodacome.

My close follow up has discovered that a great Tanzanian population is now very much interested in using these services since it helped to reduce and minimize the queuing problems at the bank counters waiting either for withdrawal of deposit of their cash. In average for most popular banks inTanzania it takes more than an hour to get services at the counter while it takes less than 15 minutes to load or withdrawal cash at agent of MPESA/TIGO PESA/ AIRTEL MONEY. This is a great improvement over the Tanzanian cash transfer systems because it real saves time that one had to queue at the bank counter. Another advantage is that, these services have provided business opportunity to many Tanzanians operating as agents and there are numerous agents all over the country even in the remote areas where there are no access of banks making it easy for deposits and withdrawal of money.

Despite of above good advantages these services are limited to the following:-
Tanzania is net wholly covered by these network hence there some places cannot access these services. And sometimes places with network can be overloaded due to number of user and hence customers can't be able to access these services.
The services are also limited to amount transferable between one person and another. The maximum amount to (1000,000 tsh) equivalent to USD 598.8 a day.

Also the fee chargeable for every transfer is higher than if one could make internal bank transfer which are free provided they belong to the same bank say CRDB to CRDB. Take an example of paying 10 employees with an average wage of 200,000 tsh (USD 116.9591) that sums to 2000,000 tsh (USD 1169.5906), if MSABI will write one cheque and the bank transfers direct into the respective employees accounts then the processing fee is 1500tsh (USD 0.8772) per employee equals to 15,000 tsh(USD 8.772) for ten employee. While if the could be done through MPESA/ TIGO PESA/ AIRTEL MONEY transfer then MSABI is supposed to pay 3000tsh (USD 1.7544) to network service p0rovider and additional of 200tsh (USD 0.1169) to an agent that sums to 3,200tsh (USD 1.8713) for every 200,000 tsh (USD 116.9591) transfer, then for 10 employee sums 32,000 tsh (USD18.71345) which is 17,000tsh (USD 9.9415) higher than bank transfer.

(NOTE: Prior to contractual agreement between a customer (sim card holder) and network provider at the central office can grant deposit and withdrawal limit over and above 1mil tsh depending to your needs but normal the maximum limit is 1 mil to an rational client.)

From five drillers asked by MSABI accountant 4 (80%)proposed that making transfer directly into their bank account is better than other cash transfer method because that shall build better behavior of saving money and mold their spending behavior. One (20%) said it better for him to receive his money by TIGO PESA because it is easier for him to withdrawal money at any agent available in the Kilombero valley than coming to Ifakara where the banks are available.

From the above simple analysis i advice we keep paying MSABI staff directly to their bank accounts since it cheap and majority likes the system,MPESA/ TIGO PESA/ AIRTEL MONEY should just be used when urgent and special need arise.