MTN Rwanda subscribers will now be able to buy tickets from public bus firms using mobile money following the launch of a new payment service by the telecom company.

Gunter Engling, the MTN chief executive officer, said the new application will boost efforts to promote a cashless economy and contribute to the growth of the public transport sector.

"The transport industry contributes significantly to the development of any economy…Therefore, we want to facilitate customers by integrating the bus payment service on our platform to enable them pay for transport fares from anywhere in the country on their mobile phones,” Engling said.

He said the new service will open a new frontier "in accessibility and usage of electronic payment solutions.”

The service has been tested with six bus firms.

Emmanuel Asaba Katabarwa, the head of transport department at Rwanda Utilities Regulatory Agency (RURA), said the initiative is a big step toward creating convenience for clients and cutting operational costs in the sector.

Charles Ngarambe, the Kigali Bus Service (KBS) executive director, said the application will help de-risk the sector and make it more competitive.

How it works

To pay for a bus ticket, dial *726#, and follow prompts (information includes destination, time of travel and amount to pay); one can confirm the payment by dialing *182#, then ‘pending approvals’ – enter PIN to confirm payment and press, OK. The transaction is free. MTN Rwanda has over four million subscribers.