It is exactly 11:30 a.m. and Félix Habumuremyi is bargaining with Eliezel Nsengiyaremye – a trader in Nyirabisekuru Trading Centre in Remera suburb located approximately 15 kilometers away Musanze City Centre – who is cagey to accept mobile money payment.
Habumuremyi who is buying a bar of soap worth Rwf500 wants to pay electronically to ensure he protects himself from the Coronavirus that could easily be transmitted via touching objects that include coins and banknotes among others.
His efforts to implement the government’s directives of adopting digital payments amidst the Covid-19 pandemic are undermined by a trader who is asking him to also add withdrawal charges on top of the actual price.
"A bar of soap normally costs Rwf500, however, I was surprised when I was charged Rwf600 just because I am paying digitally yet I was only protecting myself,” Habumuremyi lamented.
Nsengiyaremye, the trader, told The New Times that charging extra-money to people who opt for digital payments is because he is also charged when withdrawing payments made digitally.
"Clients should understand that traders are charged while withdrawing; that’s the main reason they should add withdrawal charges on actual payments since we do not want to face losses,” he explained.
An extraordinary cabinet meeting that convened on June 2, 2020, resolved that "all traders are required to accept digital payments as an alternative form of payment,” among other decisions.
However, a number of residents from various parts of Musanze District in the Northern Province noted that they are discouraged by some traders who are unwilling to embrace the government directive.
"Our will to go cashless is hindered by some traders who are stuck in the old payment system which is risky given that one may get coronavirus by touching notes and coins,” noted Justine Bayavuge, a mother of three from Kinigi Sector in Musanze District.
"We are requesting the government to assess the implementation of the digital payment system and come up with stringent measures to ensure the system is inclusively embraced,” she added.
Adéodatus Niyotwizeye, a mobile money agent told The New Times that some traders request additional money while receiving digital payments as they might be unaware of an e-money system that allows business actors to withdraw with zero charges.
"We simply call the system ‘float’, when one has it activated on their SIM-cards they process digital payments and withdraw money as equal as they receive it,” he explained.
"A number of traders are yet to apply for the system but they can do it to ensure they play their part in the fight against Covid-19 pandemic through embracing digital payments,” advised Niyotwizeye.
What the district says
Speaking to The New Times, Andrew Mpuhwe Rucyahana, the Musanze District vice mayor in charge of economic development, said that they were aware of the challenges of implementing the government directive to embrace digital payments.
He cited traders and motorcyclists among those who are yet to embrace the cashless system yet they encounter many clients on a daily basis.
Rucyahana added that the district was working closely with the local Private Sector Federation (PSF) and financial institutions to sensitise residents and the business community on the cashless economy.
"It has not been easy because we have to do a lot of mobilisation for people to change their behaviour, mindsets and ways they have been doing things.”