Rwanda’s eKash Transactions Surge to $1.5 Billion Monthly
Rwanda’s eKash instant payment system has seen a dramatic surge in usage. From August to September, monthly transactions jumped from 140,000 to 1 million. The value of these transactions also skyrocketed, rising from $7 million to $1.5 billion per month.
The Rwandan government views payments as a public good and has invested in eKash as part of its digital public infrastructure. Soraya Munyana Hakuziyaremye, Governor of the National Bank of Rwanda, emphasized the goal of creating a level playing field between mobile money operators and banks.
Centralized System, Lower Fees
Taking inspiration from successful instant payment systems like India’s UPI and Brazil’s PIX, Rwanda’s central bank mandated that all person-to-person transactions occur through eKash. This eliminated existing bilateral agreements between mobile money providers and financial institutions.
A key driver of adoption was the dramatic reduction in transaction fees. Previously, fees for transactions over 1 million Rwandan francs (approximately $679) could reach $2. Now, fees are capped at a mere 20 francs (less than $0.02).
This fee reduction was only possible due to the mandatory routing of transactions through eKash. To offset potential losses for banks, mobile money providers, and microfinance operators, the central bank highlighted new revenue opportunities. These institutions can leverage aggregated transaction data from eKash to offer alternative credit scoring and expand lending to their clients.
This approach mirrors strategies employed by other countries seeking to modernize their payment systems and boost financial inclusion. By centralizing transactions and reducing costs, Rwanda aims to replicate the success stories of UPI and PIX, which have transformed digital payments in their respective regions.
Addressing Credit Access and Regional Integration
Despite high financial account ownership (92%), access to credit remains limited in Rwanda, with only 20% of individuals having access. Governor Hakuziyaremye stressed the importance of tracking financial health indicators through eKash to improve financial well-being.
Rwanda is also actively pursuing cross-border payment integration. A pilot program integrates eKash with Tanzania’s Instant Payment System (TIPS), serving as a model for broader regional integration within the East African Community (EAC).
Additionally, Rwanda is integrating with the COMESA Clearing House and the Pan-African Payment and Settlement System (PAPSS), aiming for seamless instant payments across Africa in local currencies.
