Mandatory electronic payments

I recently heard that the Government has issued a new Order requiring certain payments to be made through electronic means instead of cash. I usually make payments for goods and services in cash, and I would like to understand how these new requirements will affect me. My concern is that electronic payments, especially through mobile money services and other payment platforms, usually attract transaction charges or deductions. If the law now requires customers to use electronic payment methods, will customers still be required to pay these additional charges? Has the Government provided any measures to remove or reduce such charges?

RM, Dar

Your question relates to the Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026 (the Order), which was issued by the Minister for Finance under section 13(2) of the Electronic Transactions Act. The Order came into operation on 1 July 2026 and introduced mandatory electronic payments for specified transactions.

The Order requires payments relating to specified transactions and sectors to be made or received through approved electronic payment methods. These include mobile money, bank transfers, electronic funds transfers, payment cards, electronic wallets, point of sale devices, internet or mobile banking and the Government electronic payment system. The requirement applies to various sectors, including public transport services, educational institutions, hotels, restaurants, tourism-related services, property transactions, motor vehicle transactions, shopping malls, filling stations and certain agricultural activities. Therefore, whether a person must make a payment electronically will depend on the nature of the transaction and whether it falls within the categories covered by the Order. We must say that the Order covers quite a wide range of transactions and sectors.

Regarding transaction charges, electronic payment platforms may impose service fees or deductions depending on the payment method used and the terms applicable to that service. At present, the Order does not provide for the removal of such charges or expressly state that they must be borne by a particular party. The applicable charges will, therefore, continue to depend on the payment service provider’s terms and any guidance that may be issued by the relevant authorities. It is a valid concern that you have raised and since the Orders enforcement begins on 1 January 2027 (unless that date is extended), there is time for your questions to be considered.