MFIs, Umurenge Saccos urged to embrace e-payment systems

Rwanda’s microfinance institutions (MFIs) should embrace electronic payment solutions to ease operations to promote the country’s efforts to achieve a cash-less economy, Daniel Barrientos, the RSwitch chief executive officer, has said. Barrientos, who was appointed the RSwitch boss last week, said the company would invest more money in creating of new solutions targeting MFIs, and also introduce its current products to MFI clients. Central bank statistics show year-on-year increments in transactions in all the e-platforms, which however leaves out the MFIs and Saccos, a large segment of the financial sector. “Saccos are managing millions of customers, and billions of francs with few of their clients using banks or mobile money. “So we want to facilitate payments for them either through cards or mobile solutions,” said Barrientos in an interview with The New Times on Wednesday. He said to achieve a bigger eco-system of electronic payments, they will work closely with all the institutions, banks and telecom operators to help increase use of e-payment systems in Rwanda. “It is important to bring microfinance institutions and Umurenge Saccos on board to reduce the use of hard cash,” he said. Figures from the central bank indicate that Rwf260 million was transacted using mobile money, Rwf20.8 million with mobile banking and Rwf153 million using Internet banking by June this year. The value of transactions using Automated Teller Machines (ATMs) or Points of Sale (POS) devices are unavailable. Banks and telecom companies have continued to roll out both card and mobile-based payment systems, which has seen the numbers of POS devices, ATMs, electronic banking infrastructure and mobile money agents in the country rise. Barrientos noted that by embracing electronic transaction systems, the microfinance sector would achieve one of its cardinal goals of increasing access to financial services for people living in the hard-to-reach areas. Rwanda aims at becoming an information and communication technology hub by 2017.

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MFIs, Umurenge Saccos urged to embrace e-payment systems