Thunes and Vodacom Tanzania have introduced a cross-border payment service that allows M-Pesa users to pay merchants in Uganda and China.
This collaboration aims to fill the existing gap in cross-border payment infrastructure for Tanzanian traders and small businesses who frequently engage with partners from these markets. Payments to Ugandan merchants are processed through MTN MoMo, while transactions to Chinese merchants are handled via the Alipay network. Both payment channels can be accessed using the M-Pesa USSD menu or the M-Pesa Super App.
Trade corridors and market context
The selected markets reflect Tanzania’s robust commercial connections. China has remained Tanzania’s top trading partner for eight consecutive years, with bilateral trade valued at USD 8.8 billion in 2024. Trade between Tanzania and Uganda reached approximately USD 2.23 billion in the same year, marking a 64% increase from the previous year.
Despite these substantial trade relationships, Tanzanian merchants have historically encountered challenges with cross-border payments, such as high costs, delays, and limited access to secure digital payment channels. The new solution is designed to address these issues by facilitating real-time, mobile-based transactions without the need for traditional banking infrastructure.
Moreover, mobile money has a significant presence in Tanzania’s financial sector. A 2025 GeoPoll survey on financial service usage in Tanzania revealed that 94% of respondents use mobile money, highlighting the potential reach of a mobile-first cross-border payment capability.
Network infrastructure and interoperability
The technical foundation for this solution is Thunes’ Direct Global Network, a proprietary infrastructure that connects various payment systems across multiple corridors. By integrating Vodacom Tanzania into this network, the partnership enhances interoperability between mobile money operators in different jurisdictions (MTN MoMo in Uganda and Alipay in China) without requiring users to access separate platforms or banking intermediaries.
This approach mirrors a broader trend in cross-border payments in Africa, where mobile network operators and fintech infrastructure providers are increasingly working together to create corridor-specific solutions that bypass legacy correspondent banking channels. For micro, small, and medium enterprises (MSMEs), which represent a significant portion of Tanzania’s trading activity with both Uganda and China, the availability of real-time, low-friction payment tools has direct benefits for working capital management and competitiveness.
Epimack Mbeteni, M-Pesa Director at Vodacom Tanzania, described the solution as a means to enable small and medium businesses and entrepreneurs in Tanzania to access regional and global markets through affordable cross-border payments.
The launch places Vodacom Tanzania’s M-Pesa platform within a broader intra-African and Africa-Asia payment connectivity agenda. This comes at a time when regulators and private sector players across the continent are advancing interoperability frameworks, including those aligned with the Pan-African Payment and Settlement System (PAPSS) and bilateral trade agreements under the African Continental Free Trade Area (AfCFTA).
