Thunes and Vodacom Tanzania have launched a cross-border payment solution enabling M-Pesa users to pay merchants in Uganda and China.
The collaboration targets a documented gap in cross-border payment infrastructure for Tanzanian traders and small businesses that regularly transact with partners in these two markets. Payments to Ugandan merchants are routed via MTN MoMo, while transactions to Chinese merchants are processed through the Alipay network. Both payment corridors are accessible through the M-Pesa USSD menu or the M-Pesa Super App.
Trade corridors and market context
The two markets selected reflect Tanzania's established commercial ties. China has been Tanzania's largest trading partner for eight consecutive years, with bilateral trade reaching USD 8.8 billion in 2024. Trade between Tanzania and Uganda reached approximately USD 2.23 billion in the same year, representing a 64% increase on the prior year.
Despite the scale of these trade relationships, Tanzanian merchants have historically faced friction in cross-border payments, including high costs, delays, and limited access to secure digital channels. The new solution is designed to address these barriers by enabling real-time, mobile-based transactions without the need for traditional banking infrastructure.
In addition, mobile money is already deeply embedded in Tanzania's financial landscape. A 2025 GeoPoll survey on financial services usage in Tanzania found that 94% of respondents use mobile money, underscoring the potential reach of a mobile-first cross-border payment capability.
Network infrastructure and interoperability
The technical backbone of the solution is Thunes' Direct Global Network, a proprietary infrastructure connecting payment systems across multiple corridors. Through the process of integrating Vodacom Tanzania into this network, the partnership extends interoperability across 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 model reflects a broader trend in cross-border payments in Africa, where mobile network operators and fintech infrastructure providers are increasingly collaborating to build corridor-specific solutions that bypass legacy correspondent banking channels. For micro, small, and medium enterprises (MSMEs), which represent a significant share of Tanzania's trading activity with both Uganda and China, the availability of real-time, low-friction payment tools has direct implications for working capital management and competitiveness.
Epimack Mbeteni, M-Pesa Director at Vodacom Tanzania, described the solution as a mechanism for enabling small and medium businesses and entrepreneurs in Tanzania to access regional and global markets through affordable cross-border payments.
The launch positions Vodacom Tanzania's M-Pesa platform within a wider intra-African and Africa-Asia payment connectivity agenda, 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).
