Over the past year, as FINCA has engaged in a partnership with The MasterCard Foundation to significantly scale up our outreach to clients through the deployment of new delivery channels, we have learned some important best practices about partnering with MNOs and implementing mobile payments, which we hope are useful to the broader microfinance industry.
Since 2013, FINCA Tanzania has been in a partnership with Vodacom, the largest mobile network operator (MNO) in the country. Through the FINCA-Vodacom partnership, FINCA customers can now use Vodacom’s mobile wallet platform, M-PESA, to make transactions to a FINCA account for both loan installments and savings. This arrangement enables FINCA customers to transact directly from their e-Wallet, saving them significant travel and other transactional costs typical of microfinance operations. One year into the partnership, 28% of the total value of deposits and 34% of the total number of transactions were being remitted through M-PESA, and FINCA Tanzania represents the fifth largest source of transactional volume for Vodacom in Tanzania.