Mobile Payment Services to Improve in Rwanda

New Mobile payment guidelines have been put in place to improve business development in the country.

Rwanda’s Central Bank has put new guidelines in place for mobile phone payments to improve business efficiency and mitigate against security risks involved in related services.

The National Bank of Rwanda (NBR) is undertaking research geared towards achieving safe and effective mobile payments. Currently only one mobile operator in the country, the MTN Rwandacell, is currently licensed to carry out mobile payment services. This service however is restricted to the local currency.

According to information posted on the NBR website, guidelines contained in the already approved,  ‘regulation n° 002/2010 of the national bank of Rwanda governing payment services providers’ states in the ‘national payment system framework and strategy’ that:

An efficient and smooth operating payment system is a necessary precondition for business development and economic growth. Accordingly, safety, integrity, efficiency and reliability of both domestic and international payments are prerequisites for the safety and stability of the financial institutions and the financial markets within which they operate.

The ‘national payment system framework and strategy’ further states that  the National Payment System is aligned to goals outlined in the vision 2020, which  has placed emphasis on developing an economic sector based on offering services with an emphasis on ICT. The vision 2020 aims at making Rwanda the regional financial hub.

The National Payment System (NPS) will be phased in, providing flexibility, so that the system modernization process can be implemented in parallel with existing live operations, such that existing business operations continue unencumbered.

The development of the new Rwandan NPS is a crucial move because of the rapid changes and developments in the country’s economy. It gears up to providing the necessary infrastructure for smooth capital movement in both the public and private sector.  It will allow broader access to financial services and improve the mobilization of more long term savings and financial investments.