Challenges of Implementing Mandatory Electronic Payments

TLDR

• The Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026, that took effect on July 1 this year, prohibits cash payments for a range of transactions such as public transport.
• Implementing mandatory electronic payments generates digital transaction records, making it easier for tax authorities, regulators and financial institutions to track economic activity.
• Making electronic payments mandatory could boost this development by encouraging more citizens to use formal financial services.
• DAR ES SALAAM: THE government’s move to require electronic payments for a wide variety of transactions represents one of the most major reforms to the country’s payment system since mobile money was first introduced.
• The reform represents a notable shift from encouraging digital payments to making them mandatory.