The Complete Guide to USSD Payments for Tanzanian Businesses

What Is USSD and Why Does It Matter in Tanzania?

USSD (Unstructured Supplementary Service Data) is the technology behind the short codes you dial on any mobile phone - like *150*00# for M-Pesa balance. No internet. No smartphone. Just a basic handset and a SIM card.

In Tanzania, where smartphone penetration is still growing, USSD remains the most inclusive payment method available. A farmer in Dodoma with a basic Nokia can pay for goods and services using the same MALIPOPAY infrastructure as a tech-savvy shopper in Dar es Salaam using a flagship Android.

How *146*08# Works

MALIPOPAY holds a proprietary USSD short code: *146*08#. When a customer dials this code, they're guided through a simple menu to complete a payment to your business.

• Customer dials *146*08# on any phone
• Selects or enters your business reference number
• Enters the payment amount
• Confirms with their mobile money PIN
• Receives an SMS confirmation instantly

You receive a webhook notification and the funds are settled to your account - exactly the same flow as an API-initiated payment, just triggered by the customer instead of your system.

Pricing Advantage

USSD payments on MALIPOPAY are charged at just 0.8% per transaction - the lowest rate in Tanzania for any digital payment channel. Compare this to card processing at 3.0% or mobile money API rates starting at 1.2%. For high-volume, lower-margin businesses like wholesale distributors or fuel stations, this difference adds up significantly.

When to Use USSD

USSD is particularly valuable for businesses serving customers in rural or semi-urban areas, utility companies collecting recurring bills, agricultural businesses buying produce from smallholder farmers, and any context where the customer is more comfortable dialing a code than using an app.

For our agricultural cooperative, USSD was the only realistic way to collect payments from over 2,000 farmer members. Many of them had never used a smartphone.

MALIPOPAY's USSD channel is available 24/7, works even during poor internet conditions, and requires zero app installation on the customer's side. For inclusive commerce in Tanzania, it remains unmatched.