Among the sectors that have experienced exponential growth and transformation in Rwanda in recent years is digital payments driven by local, regional and global firms. Among the local firms that have played a role in the evolution and development of digital payments is Zubacx, which operates in Rwanda, and now has presence across five East African countries as well as distant markets such as Ghana and Gabon. The firm was set up 18 years ago and grew out of internal acquisition by individuals who have been in the electronic retail payments and IT industry. Austin Bareme the Chief Executive Officer of Zubacx said that while at inception, their core business was supplying and supporting ATM terminals, they have since expanded to other solutions such as digital banking. Following their initial supply and support of ATMs, the firm gained inroads in regional markets allowing them transition to more digital payments solutions. “The business has over the years, diversified its portfolio to include POS terminal solutions that cater to the cashless drive being promoted in various territories, airport passenger management systems-for which there is a significant growth projected in Africa in spite of the Covid-19 pandemic setbacks, new green energy solutions including facilitating digital and card payments for electric vehicles (EV), public transport solutions, digital identification and enhanced customer experience solutions among other products,” Bareme explained. The firm’s diversification, he said, has been through strategic partnerships taking into consideration the identified market needs and dynamics. Among the key digital payments solutions beyond ATMs the firm has been behind include hardware and software solutions in the retail electronic payments sector and this covers facilitating payments at front end terminals (POS/ATM), enhancing cybersecurity, digital identification (KYC) and onboarding of clients, fraudulent transaction monitoring. Other solutions include the incorporation of always evolving payment platforms including wearables and WhatsApp banking into the national payment systems. In the local and regional market, the financial sector, he said, is attempting to leverage off technology to increase both the scope and reach of services at a significantly lower cost compared to the more traditional methods like brick and mortar branches. “One of the ways of achieving this is migrating in-branch services to personal devices which they would already be using for calls etc. In this regard, Zubacx looks to play a role in the evolution of this sector through the whole client cycle from client on boarding and registration, accessing services, securing their transactions and accounts against unauthorized access and fraud and getting instant feedback all through digital channels,” Bareme said. “This has the benefit of creating more efficiency in the sector as there is instant visibility on events as they occur and thus quicker resolution not to mention the wealth of data generated that allows for more product innovation through analysis of behavioral traits,” he said. From previous experience and insights, he noted that among key drivers of digital payments uptake include interventions such as lowering transaction costs off digital channels, tax concessions on facilitators like front-end hardware as well as affordable internet access. Going forward, Bareme projects an increase in solutions as well as fintech firms in the local and regional space as well as increased client interaction. “The growth of digital payments could be seen to exponentially rise especially in developing countries where a majority of the population is excluded from the traditional banking sector and can be able to leapfrog directly into mobile wallets and e-money transactions,” For Zubacx, going forward, the firm says that they are keen on continuously introducing better user experiences and convenience and this is especially true with the advent of Internet of Things where data drives demand and ease of payment becomes a facilitator.
