File size: 2.1 Mb
Over the past few years, the Government of Rwanda has been encouraging the financial sector and ordinary Rwandans to embrace electronic platforms to carry out personal financial transactions for efficiency and safety reasons. The drive seeks to discourage people from carrying large sums of cash when conducting business or shopping, amongst others, and hence encourage a cashless economy.
As technological developments advance and extend the delivery of financial services to the masses, there are notable benefits of digital finance to the customer which include, amongst others: easy access to financial services, reducing travel and queuing times when done from the convenience of mobile or computer devices, completing transactions faster and moving large sums of money without carrying cash thus offering secure and safer options.
The Rwanda Payment System has improved in the period under review as witnessed by the operations of Rwanda Integrated Payments Processing System (RIPPS). Significant progress has been observed in the retail payment system especially Mobile Financial Services (MFS) and internet banking services.
The definition from FinMark Trust (2016) considers “digital finance” as methods to electronically store and transfer funds, to make and receive payments including to borrow, save, insure and invest, and to manage a person’s or enterprise’s finances. FinMark Trust further defines Mobile Money (MM) as an electronic representation of conventional money, the value of which is on par with the official currency of the licensing state, which may be transferable, redeemable for cash and is generally an accepted means of payment.
Access to digital finance enabled products and services: About 46% of Rwandan adults have access to digital financial services (DFS) enabled products and services. This will be referred to as the DFS universe. However, not all these adults actually use these services.
Digital Financial Services: About 15% are using DFS to facilitate payments and transfers. This segment actively uses their financial transactional accounts and self-originates these transactions themselves – unassisted.