MICROCAPITAL BRIEF: Tanzania’s National Microfinance Bank Launches MasterCard Debit Cards

Tanzania’s National Microfinance Bank (NMB) recently launched a range of debit cards including Tanzanite, targeting the mass market; Titanium, targeting the middle class; and World Rewards, targeting affluent customers. These debit cards are branded by MasterCard, a New York-based payments and technology company. As per Ineke Bussemaker, the managing director of NMB, the debit cards were launched to cater to the “evolving needs” of the bank’s customers who were “increasingly seeking faster, more secure and smarter ways to pay.”

The debit cards will enable cardholders to withdraw money from automated teller machines (ATMs) worldwide that accept MasterCard cards, as well as make online payments. Michael Miebach, the president of the Middle East and Africa division of MasterCard, said that his firm’s debit cards are accepted at “millions of merchants in more than 210 countries” and that “every local and international transaction is protected by MasterCard SecureCode and EMV (Europay, MasterCard, Visa) Chip and PIN (Personal Identification Number) technologies, which provide additional layers of security every time a cardholder uses their card online or in a traditional store.” Debit cardholders will also be entitled to access NMB services including smartphone applications, internet banking and mobile banking.

NMB has approximately 170 branches and 600 ATMs in the country. Since its privatization in 2005 through 2015, the bank’s customer base has grown from 600,000 to 1.8 million. For the year 2013, NMB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.1 billion, deposits of USD 1.6 billion and a gross loan portfolio of USD 1 billion.

As of March 2015, MasterCard reported total assets of USD 14.6 billion and 2.2 billion payment cards in circulation.

By Arpita Sarkar, Research Associate

About National Microfinance Bank (NMB):

The National Microfinance Bank (NMB) is microfinance institution (MFI) that was established in 1997 by the National Microfinance Bank Limited Incorporation Act of Tanzania. The bank provides payment services, savings accounts and loans. As of 2015, NMB operates 600 ATMs and approximately 170 branches in Tanzania. Since its privatization in 2005 through 2015, the bank’s customer base has grown from 600,000 to 1.8 million. As of 2013, Dutch lender Rabobank owned a 34.9-percent stake in the bank while the Tanzanian government owned a 30-percent stake. Exim Bank Tanzania, the Tanzania Chamber of Commerce Industry, and Agriculture and National Investment Co Ltd owned a combined 14.1 percent of NMB. For the year 2013, NMB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.1 billion, deposits of USD 1.6 billion and a gross loan portfolio of USD 1 billion. In 2015, NMB launched a range of MasterCard debit cards for its customers.

About MasterCard:

Headquartered in the US city of Purchase, New York, MasterCard is a payments and technology company that connects consumers, financial institutions, merchants and governments in approximately 210 countries and territories. As of March 2015, MasterCard reported total assets of USD 14.6 billion and 2.2 billion payment cards in circulation.

Sources and Additional Resources:

MasterCard Press Release: “National Microfinance Bank Launches Suite of Internationally Accepted MasterCard Debit Cards in Tanzania,”http://newsroom.mastercard.com/mea/press-releases/national-microfinance-bank-launches-suite-of-internationally-accepted-mastercard-debit-cards-in-tanzania/

MicroCapital Story, February 5, 2013, “MICROCAPITAL BRIEF: National Microfinance Bank (NMB) of Tanzania to Establish 20 New Rural Branches,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-nmb-of-tanzania-to-establish-20-new-rural-branches/

MicroCapital Story, June 14, 2012, “MICROCAPITAL BRIEF: National Microfinance Bank (NMB) of Tanzania Boost Deposit Interest Rate to 10%,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-nmb-of-tanzania-boost-deposit-interest-rate-to-10-aims-to-increase-deposits/

MicroCapital Story, May 22, 2012, “MICROCAPITAL BRIEF: National Microfinance Bank (NMB) of Tanzania to Promote Savings for Education,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-nmb-of-tanzania-to-promote-savings-for-education/

MicroCapital Story, February 24, 2011, “MICROCAPITAL BRIEF: National Microfinance Bank (NMB) of Tanzania Loans $105m to Coffee Farming Groups,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-nmb-of-tanzania-loans-105m-to-354-coffee-farming-groups/

MicroCapital Universe Profile: NMB, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Microfinance+Bank+%28NMB%29

MicroCapital Universe Profile: MasterCard, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

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