The National Bank of Rwanda (BNR) has vowed to connect various cashless payment systems used in the country in 2025, which will result in reduced transaction charges. The move, dubbed the interoperability switch, aims to enhance the efficiency, security, and accessibility of digital payment methods across the financial system. An interoperability switch refers to a technology or system designed to enable different payment networks or platforms to communicate and work seamlessly together. This switch acts as a bridge, allowing transactions and data to flow between various payment systems (e.g., bank accounts, mobile money wallets, credit/debit cards, or digital currencies) even if they are based on different technologies or standards. ALSO READ: Access to finance in Rwanda reaches 96 per cent – report Speaking to the national broadcaster RBA, Central Bank Governor John Rwangombwa said that the number of people using cashless payment systems continues to increase every year. There are plans to connect all cashless payment systems. For instance, when you want to pay through Mobile Money platforms, you must have money on MTN or Airtel SIM cards. Soon, after the interoperability switch, you will be able to use money from your bank account through your bank’s app and pay for a service using MoMo codes from MTN or Airtel. We are optimistic that transaction costs will drastically decrease, he explained. ALSO READ: How tech is poised to transform banking in Rwanda By linking different systems, the central bank can create a more efficient and faster transaction environment, reducing delays and the costs associated with cross-platform payments. Connecting systems can help ensure that people in rural or underserved areas have access to cashless payment options, even if they don’t use the same platform as those in urban areas, thus boosting financial inclusion. ALSO READ: Rwanda mulls a digital currency in two years - Central Bank According to Appolinaria Mukarusine, an employee at Tr5 Resort Hotel, they receive most of their payments through MoMo codes. We have three MoMo codes depending on the hotel’s services, such as bar services, which have their own payment code. Some clients prefer POS transactions, she said, explaining the increased uptake of cashless payment systems. Jean D'amour Kwizera, an employee at Enterprise Sina Gerard Nyirangarama, said that the company has over 100 MoMo codes, which help to monitor financial resources from across the country. The payment systems also speed up service delivery to clients, he explained. ALSO READ: Why central bank maintains caution on crypto currencies According to the central bank, cashless payment systems have created thousands of jobs, especially those generated by mobile money transaction services. There are currently about 100,000 mobile money agents in Rwanda. According to Amien Ndizeye, Executive Secretary of the Rwanda Consumers' Rights Protection Organization (ADECOR), transaction costs are still high in some payment systems. Teddy Kaberuka, an economist, believes that the central bank should help reduce transaction costs in cashless payment systems to increase their uptake.
