Rwanda on Wednesday announced a new phase of a digital payment awareness campaign that seeks to promote digital transaction, payments and savings in order to achieve a cashless economy.
The second phase of the campaign that targets both consumers and merchants was held two year after the first one in 2017 which targeted merchants only.
The digital payment system eases financial transactions, lowers the risk that goes with the use of traditional financial transaction means and reduces transaction costs to stores and banks, said John Rwangombwa, governor of National Bank of Rwanda, at the launch of the campaign.
Rwanda’s cashless journey has been progressive with digital financial services increase over time, whereby the value of e-payments to GDP increased from 0.3 percent in 2011 to 34.6 percent in 2019 and retail payment services have kept growing over the eight years due to the adoption of new technologies and easy access to payment system by customers, he said.
As of June 2019 point-of-sale (POS) machines using automated cards in Rwanda increased to 3,046 compared to 2,801 in 2018 and 227 in 2011, according to him.
However, he said that the Rwandan payment industry is still facing challenges including a limited number of touch points in terms of POS, agents and merchants, existing payment terminals concentrated in urban areas, high cost of payment services in both cards and mobile financial services among others. Enditem