The government’s drive encouraging Rwandans to embrace payments systems that do not involve using paper money, looks to be making big inroads with an increasing number of people embracing e-payments facilities. This points to the slow but sure elimination of paper payments in the country, especially after more financial institutions and government agencies have adopted electronic payment systems. The initiative fits in well with the country’s goal to achieve a green growth-led economic approach in the medium to long-term, Lydia Atieno & Anitha Kirezi explore the growing trend toward a more e-money economy. 

The days of paper money and payments could be numbered as more Rwandans and financial institutions embrace electronic payment systems and money transfer services. 

If you are a regular shopper, you will have noticed that an increasing number of people is paying for items bought at the local supermarket, shop or butchery using credit cards. 

One can also pay for their favourite food at the local eatery using e-money facilities – credit and debit cards. Then there is the Tap&Go smart transport solution, among others. 

Experts say the growth of e-payment systems and money transfer services is being fuelled by proliferation of facilities that promote a cashless culture, which have lately become more accessible across the country, like mobile money, mobile banking and credit and debit cards. 

This has helped deepen use of e-payment facilities and increase financial inclusion among the masses, especially the under and unbanked rural population. The growth in the use of electronic cards and mobile money is helping the country achieve its cashless economy targets.

According to Kenneth Agutamba, the market and public relations manager at the Bank of Kigali, banks and other financial sector players are promoting a cashless economy through innovative technology delivered services. 

He said Bank of Kigali has grown from 176 subscribers in the past 10 years to 10,000 customers. He added that overall, more than 300,000 Rwandans use mobile banking services provided by different banks and microfinance institutions.

In a further move to promote cashless economy, the banks have also deployed over 850 point of sales (POS) machines to enable usage of cards. The network of ATM machine that accepts Visa, MasterCard credit and debit cards is also pushing up the figures of the paperless community, he added.

"Even with the mobile banking and money transfer service platforms, the bank is constantly analysing customer feedback to provide e-payments facilities that meet their expectations and needs,” Agutamba said.

According to Patrick Buchana, the CEO of AC Group, a technology company that deployed the Tap&Go smart transport solution for the Rwanda’s public transport system, information and communication technology (ICT) innovations have created the right environment that fosters a cashless culture.

"The drive to have a cashless Rwanda is on the going; and with Tap&Go, we significantly contribute to creation of a cashless environment. For instance, with Tap&Go, all payments for public transport go through card payment facility, which will soon to be integrated with the mobile money platforms and bank clearing systems,” he said.

He added that the initiative will eliminate the need to issue tickets or use paper money to pay for bus fares, which reduces risks associated with carrying cash, looking for change and queues caused by issuing bus tickets. Buchana also said many people find the solution more convenient.

"Currently, over 150,000 commuters are using Tap&Go cards, and we are targeting about 600,000 public transport users by the launch of Cashless Kigali next month,” he said.

"The solution is secure in a sense that your transport e-value can’t easily be stolen, it enables you to plan how much you would like to spend monthly, but, most importantly, your money is always secure at all times even five years later, the e-value that was not used is always there,” explained Buchana.

Charles Ngarambe, the executive director of Kigali Bus Services, said the system has gained momentum in the past two months. 

"We have seen a marginal improvement...and now Tap&Go cards are being used by both the upcountry people and urban dwellers, including students and senior citizens,” he said.

He added that the initiative has promoted the culture of using e-payments facilities, which has reduced the cases of dishonesty among bus employees.

"The Tap&Go cards have eliminated use of tickets on Kigali-Kicukiro, Kimironko-Gikongo, and Kimironko-Kicukiro routes. 

"This is in line with government programmes on promotion of a cashless culture, as well as an environmentally-friendly transport system in Kigali that is part of the green growth strategy,” he said.

Mary Macyeyukuri, a Kigali resident, said the initiative is helpful, adding that it helps people plan for their transport and also save, especially for those that don’t know how to manage money. 

"Personally, I have been able to budget for my transport money by loading three months’ worth of fare. This has also taught me to plan and save for other things,” she said. 

For Joseph Habiyaremye, a regular commuter on the Kimironko-Kicukiro route, Tap&Go cards provide convenience, and are helping in conservation of the environment. 

"The system has also reduced delays that were caused by paper money payments, where conductors had to collect money from the passengers, and issue receipts,” he said. 

Habiyaremye, however, urges the government to put in place a mechanism to enable all public transport firms embrace the solution, as well as ease access to the cards by ordinary Rwandan.