Exim Bank Tanzania recently concluded a two-month card promotion campaign, reflecting the broader challenges traditional banks face as mobile money platforms gain ground in East Africa's largest economy.

Mobile Money Momentum Builds

Tanzania's digital payments landscape has shifted significantly toward mobile money services. Mobile network operators like Vodacom, with its M-Pesa platform, have built substantial market presence alongside competitors including Airtel Money and other local services.

The growth stems from mobile money's accessibility advantages. These platforms require only basic mobile phones and work through agent networks that reach areas where traditional banking infrastructure remains limited.

Geographic Realities Shape Competition

Financial access varies dramatically across Tanzania's regions. Urban centers like Dar es Salaam maintain higher concentrations of banking services, while rural districts often rely more heavily on mobile money agents for financial transactions.

This geographic divide creates structural challenges for card-based payment systems. Bank cards require merchant terminals, reliable internet connectivity, and point-of-sale infrastructure that mobile money bypasses through SMS-based transactions and cash-in, cash-out agent networks.

Platform Control Risks Emerge

The competitive dynamics raise questions about customer relationship ownership. Mobile network operators control the primary customer interface through mobile money apps and USSD menus. This positions them to capture transaction data and customer insights that traditionally belonged to banks.

Banks risk becoming payment processors rather than customer-facing service providers. The shift could affect fee structures and customer acquisition strategies across Tanzania's financial services sector.

Campaign Outcomes Uncertain

Exim Bank's promotional approach reflects one strategy for maintaining card payment relevance. However, the effectiveness of marketing campaigns against structural technology adoption trends remains unclear.

The conclusion of Exim's campaign provides an opportunity to assess whether promotional activities can meaningfully shift payment preferences in markets where mobile money offers clear convenience advantages for large population segments.