The National Bank of Rwanda (BNR) plans to connect the country’s various cashless payment systems by 2025, a move expected to reduce transaction costs. The initiative, known as the “interoperability switch,” aims to improve the efficiency, security, and accessibility of digital payment methods across Rwanda’s financial sector.
The interoperability switch will allow different payment networks, such as bank accounts, mobile money wallets, credit/debit cards, and digital currencies, to communicate seamlessly, even if they use different technologies or standards. Central Bank Governor John Rwangombwa told state broadcaster RBA that the number of people using cashless payment systems is steadily increasing each year.
“There are plans to connect all cashless payment systems. For instance, if you want to pay through Mobile Money platforms, you currently need to have money on an MTN or Airtel SIM card. Soon, after the interoperability switch, you’ll be able to pay from your bank account through your bank’s app and use MoMo codes from MTN or Airtel. We are optimistic that transaction costs will drastically decrease,” Rwangombwa said.
By linking different systems, the central bank aims to create a more efficient and faster transaction environment, reducing delays and the costs associated with cross-platform payments. The move is also expected to increase financial inclusion by providing access to cashless payment options in rural or underserved areas, even if those areas don’t use the same platforms as urban centers.
Appolinaria Mukarusine, an employee at Tr5 Resort Hotel, said the hotel receives most of its payments via MoMo codes, with different codes for services such as the bar. Some clients still prefer point-of-sale (POS) transactions, reflecting the growing use of cashless payment systems.
Jean D’amour Kwizera, an employee at Enterprise Sina Gerard Nyirangarama, noted that the company uses over 100 MoMo codes to track financial resources across the country, helping to streamline service delivery to clients.
BNR also highlighted the job creation benefits of cashless payment systems, particularly through mobile money services. The country currently has about 100,000 mobile money agents.
However, according to Amien Ndizeye, executive secretary of the Rwanda Consumers’ Rights Protection Organization (ADECOR), transaction costs remain high in some payment systems. Economist Teddy Kaberuka echoed this concern, urging the central bank to take further steps to reduce costs and increase the adoption of cashless payments.