Parliament has requested Rwanda Utilities Regulatory Authority (RURA) to enforce the interoperability system of MTN Rwanda and Airtel/Tigo to ease transactions.

Mobile money interoperability allows customers of different mobile financial services providers to interact with each other, for example by making direct payments from the mobile money account of one provider to the mobile money account of another provider.

The resolution was adopted by the Chamber of Deputies during a virtual plenary sitting that was held on Monday, March 1.

The Lower House’s plenary adopted the report of the Committee on Economy and Trade on the management of petroleum facilities, as well as that of service delivery through the use of ICT. 

On November 19, 2020, while presenting the National Bank of Rwanda’s 2019/2020 annual report to both chambers of parliament, Central Bank Governor, John Rwangombwa said that the government was in negotiations with RSwitch to deliver the interoperability system.

He said that the system would be operational in June 2021.

RSwitch is Rwanda's national e-payment switch with mandate to expand the financial services ecosystem by delivering interoperable solutions.

Rwangombwa said that once the system is operational, it will ease and speed up cashless payments, and reduce the cost of transaction.

"Currently, if you are a subscriber to MTN mobile money you are not able to pay a subscriber to Airtel money. When you have a digital payment channel in a given bank you can use it only for transactions in that bank,” he added. "But, after we have linked those channels, you can have a product in a given bank and use it for payment through MTN, or Airtel network, Equity, BK among others”.

"The National Bank of Rwanda should speed up the introduction and implementation of interoperability system so that transactions including payment and money transfer are done 24/24 hours by use of any telephone provider close to the service seeker,” said Theogene Munyangeyo, Chairperson of the Committee on Economy and Trade.

MP Damien Nyabyenda said that some public institutions are still requesting hard deposit receipts of money paid to their accounts prior to offering services to residents.

"The Government should take the lead in cashless payments,” he said.

MP Veneranda Nyirahirwa said that there is need to reduce the cost of mobile money payments, which will make many people use the service.

"Telecommunication companies should benefit from the large number of people who use their mobile money payment service,” she said.

She said that telecommunication companies should strengthen the security of their subscribers’ accounts so that they are assured of the safety of their money.

"The progress of this service is sometimes hindered by fraud committed in it, and in most cases, RIB points a finger to the telecommunication companies that do not effectively protect the security of their subscribers’ accounts,” she said.

Digital transactions have been increasing especially during the Covid-19 pandemic.

Between January and April 2020, the funds transferred via mobile money rose by 450 per cent to reach Rwf40 billion (over $42 million), according to data from RURA.

The growth was mainly driven by the fact that people embraced cashless transactions in a bid to protect from contracting Covid-19 through circulating cash, and the waiver of payment, money withdrawal and transfer fees.

Meanwhile, MPs said that there is a need to register and have identification of all mobile money agents, because they have a lot of data about people, so that in case a problem arises, the entities in charge can manage to pursue those responsible.