NMB Bank and Mastercard Introduce Tanzania’s First ‘QR Pay by Link’ Solution, Transforming Digital Payments

In a significant leap forward for digital payments in Tanzania, NMB Bank Plc has partnered with Mastercard to launch the country’s first QR Pay by Link (QR PBL) payment solution. This innovative system enables businesses to accept payments via QR code or secure link, making transactions simpler and more accessible, especially for small and medium-sized enterprises (SMEs) across various sectors. This introduction of QR PBL marks a turning point in Tanzania’s move toward a digitally connected economy, addressing many of the challenges associated with traditional payment systems.

How QR Pay by Link Works

Traditionally, businesses that accept card payments require physical point-of-sale (POS) devices to process transactions. However, these devices can be costly, challenging to maintain, and inconvenient for smaller businesses. NMB’s new QR PBL solution offers a different approach, allowing merchants to accept payments directly through QR code scans or a secure link that consumers access via their smartphones. The process is straightforward:

1. QR Code or Payment Link: The merchant generates a QR code or payment link using the QR PBL platform. This code or link can be displayed to the customer at checkout.
2. Consumer Scan and Pay: The customer scans the QR code or taps the link, which directs them to a secure payment page on their smartphone.
3. Secure Transaction Completion: The customer enters their card details and completes the transaction, eliminating the need for a password or physical device, thanks to Mastercard’s Click 2 Pay technology.

This payment method is quick and secure, ensuring that both merchants and customers experience a seamless transaction process without the need for a physical POS terminal.

Mastercard Click 2 Pay: Enhancing Payment Security and Speed

One of the standout features of this solution is the integration of Mastercard’s Click 2 Pay, a streamlined checkout experience that eliminates the need for passwords. The technology behind Click 2 Pay creates a secure, password-free transaction environment that reduces the likelihood of unauthorized transactions, supporting the QR PBL’s objective of providing safe, reliable, and easy-to-use payment methods.

By focusing on security, QR PBL addresses a common concern among Tanzanian consumers and businesses about digital payments: the risk of fraud. With Click 2 Pay, customers can trust that their transactions are protected, encouraging more consumers to engage in digital payments.

Empowering Small and Medium-Sized Enterprises (SMEs)

In Tanzania, there are more than 3 million small businesses employing over 5 million people, underscoring the importance of a payment system that supports these enterprises. Most SMEs in Tanzania operate in retail, hospitality, food services, transportation, and tourism—industries where cost-effective, secure, and accessible payment options are essential for growth.

With QR PBL, Tanzanian businesses, even those without the resources to invest in a POS device, can still provide digital payment options to their customers. By removing high entry costs, the solution opens up digital payments to a wider range of businesses, from local markets and restaurants to taxis, boda boda drivers, and curio shops, empowering them to compete in a cashless economy.

Cost-Effective and Scalable for Tanzanian Businesses

Another key advantage of QR PBL is its cost efficiency. Setting up physical payment terminals can be a considerable investment, which often restricts smaller businesses from offering card payment options. The QR PBL model eliminates the need for these devices, making digital payment acceptance significantly more affordable and manageable for SMEs.

For businesses that previously depended on cash transactions, this solution is particularly beneficial. It offers them a way to integrate digital payments into their operations without significant infrastructure or maintenance costs. The simplicity of QR codes and payment links means merchants can scale their payment acceptance capabilities without the limitations posed by hardware.

Supporting Financial Inclusion

Financial inclusion remains a pressing goal across Africa, and Mastercard has long focused on providing access to the digital economy for underrepresented communities. QR PBL aligns with Mastercard’s broader mission to connect one billion people and 50 million small merchants to the digital economy by 2025. In Tanzania, QR PBL has the potential to address financial exclusion by making cashless payments available to businesses and consumers who have traditionally relied on cash.

This increased inclusion is important not only for individual businesses but also for the overall economy. As more small businesses transition to digital payments, they can benefit from data-driven insights that help them understand customer behavior, forecast demand, and improve operational efficiency.

Adapting to Tanzania’s Payment Landscape

QR PBL’s adaptability makes it particularly suited to Tanzania’s unique market needs. As an e-commerce payment solution, QR PBL enables payments via card details on smartphones, making it easier for consumers to transition to digital payments. The system supports Mastercard payments, other card payment schemes, and UPI payments, giving consumers a range of options. This flexibility is beneficial in a country where digital payment infrastructure is still developing, offering both merchants and consumers more ways to engage in cashless transactions.

In practice, QR PBL could help Tanzanian businesses—many of which previously found digital payments prohibitive—integrate these options into their daily operations, catering to a digitally minded customer base that increasingly prefers cashless transactions.

Streamlining Tanzania’s Move Toward a Cashless Economy

As Tanzania continues to pursue digital transformation, the QR PBL solution positions NMB Bank and Mastercard as leaders in the country’s transition toward a cashless economy. The Tanzanian government has supported digital initiatives, encouraging businesses and individuals to adopt secure and efficient payment technologies.

QR PBL adds value to this shift by allowing real-time, cashless transactions without the need for advanced POS systems. It redefines what is possible in Tanzania’s payment landscape, particularly for smaller enterprises that have faced barriers to digital payment adoption in the past.

Broader Impact and Future Outlook

NMB Bank’s extensive presence across Tanzania—231 branches, over 40,000 agents (Wakala), and over 751 ATMs—ensures that QR PBL can reach businesses in all districts, from bustling urban centers to rural communities. This widespread accessibility is crucial in a diverse market like Tanzania, where SMEs often have limited resources for adopting new technologies.

Looking ahead, QR PBL could set a precedent for other digital innovations aimed at expanding financial services to underserved areas. The platform’s simplicity and low cost could inspire similar models that address other financial barriers Tanzanian businesses face.

Conclusion: A New Era for Tanzanian Payments

The launch of QR Pay by Link is a significant step in Tanzania’s journey toward a modern, inclusive payment ecosystem. By offering SMEs an affordable, scalable, and secure solution, NMB Bank and Mastercard are laying the groundwork for a digitally connected economy where businesses of all sizes can thrive. With this new solution, Tanzanian consumers and merchants alike can look forward to a future where payments are faster, safer, and easier to manage.

This development is not just about technology but about reshaping the way Tanzanian businesses operate, making digital payments an accessible part of everyday commerce. As Tanzania embraces digital transformation, QR PBL stands to redefine the possibilities for small businesses, creating a ripple effect that could spur growth and innovation across sectors.