As Rwanda continues its ambitious journey toward becoming a cashless economy, technical disruptions and prolonged system maintenance pose a significant challenge. These disruptions often last longer than expected, resulting in financial losses for business owners and growing frustration among consumers who depend on seamless digital payment systems. Recently, individuals affected by such disruptions voiced their concerns, urging for stronger interventions to enhance the reliability of cashless payment systems rather than solely focusing on mobilising people to adopt them. Businesses incur losses Rosalie Uwimana, a restaurant owner in Nyarugenge District in the City of Kigali, shared her experience of financial loss caused by a mobile money (MoMo) service disruption. “A few days ago, I lost approximately Rwf50,000 because of a service outage,” she explained. “I had prepared milk, fruit salads, and fresh bread for my morning customers, but many didn’t show up or couldn’t pay because they rely on MoMo for transactions.” Uwimana added that the perishability of her products exacerbated the issue. “These items spoil quickly, and without reliable payment systems, I had no choice but to absorb the losses. It’s especially frustrating when disruptions are poorly communicated or last longer than announced,” she said. The restaurant owner emphasised the importance of efficient cashless payment systems, urging service providers to improve their management and ensure these platforms remain dependable for businesses and consumers alike. ALSO READ: MTN restores mobile money services after hours of shutdown Taxi-moto riders, consumers feel the pinch Jean Pierre Nkurunziza, a taxi-moto rider, echoed similar frustrations, explaining how mobile money outages directly impact his earnings. “Many passengers prefer MoMo for payments, but when the service is down and they don’t have cash, I lose out on fares,” he said. Nkurunziza highlighted that these disruptions affect his daily income and called for better oversight and management to enhance the reliability of cashless payment systems. ALSO READ: Mobile Money: Businesses, individuals speak out on recent disruptions Emmanuel Mugabo, a bank cashier and resident of Muhima Sector in Nyarugenge District, recounted his struggle when a mobile money outage left him unable to pay for his taxi-moto ride to work. “I didn’t have cash, and when I realised MoMo wasn’t working, I thought I’d be stranded,” he said. Fortunately, his driver was aware of the service issue and informed him before starting the journey. As a result, Mugabo had to walk for nearly an hour to reach his workplace, leaving him tired, late, and frustrated. “I rely on mobile money for most of my transactions,” he added, adding that the outage disrupted his routine and underscoring the need for more reliable systems. ALSO READ: Central bank to harmonise all cashless payment systems for interoperability Central bank’s plan Gerrard Nsabimana, the Director of Consumer Protection at the National Bank of Rwanda (BNR), outlined the interventions being implemented to minimise disruptions in cashless services. While Nsabimana acknowledged the challenges faced by users, he reitereted that the bank is working closely with service providers to enhance system reliability and ensure seamless transactions as the country continues its transition toward a cashless economy. Below are some of the measures the bank highlighted aimed at minimising disruptions: Infrastructure investment, regulatory oversight The central bank has encouraged financial service providers to invest more in robust Information technology (IT) infrastructure, redundant systems, and scalable platforms to accommodate increasing transaction volumes effectively. The bank said it also conducts regular inspections, disaster recovery tests, and performance reviews to ensure the reliability and resilience of financial systems. Public-private collaboration ALSO READ: Banks, govt must do more to achieve a cashless economy, experts say Collaboration between government and private entities focuses on improving digital literacy, expanding coverage, and addressing technical challenges to enhance system performance and accessibility. Sanctions and warnings In cases of noncompliance, sanctions and warning letters are issued to discourage violations and enforce adherence to regulations. He added that the BNR regulates and monitors mobile money providers on regular basis to ensure reliable service delivery for all users. Licensing and compliance BNR through the 2021 law governing the payment system requires payment service providers to meet stringent licensing conditions, including adherence to robust operational and financial standards as per article 18 of the aforesaid law that stipulates the grounds for withdrawal or suspension of license. Regular inspections Mobile money operators undergo periodic inspections to ensure compliance with regulatory requirements and performance standards. Transaction monitoring BNR monitors transaction volumes, failure rates, and complaint trends to identify systemic issues and implement corrective actions. Consumer protection policies Regulations enforced by BNR, Nsabimana said, include provisions for transparency, fair pricing, and efficient dispute resolution to safeguard consumer rights. Collaborative initiatives BNR actively engages stakeholders, including mobile money providers and users, to enhance service quality and address industry challenges collaboratively. Regulatory penalties Article 107 of the 2022 regulation relating to financial service consumers protection and article 43 of the 2022 regulation relating to business continuity management and operational resilience for regulated institution outline the disciplinary sanctions and penalties that apply in cases of noncompliance with the provisions of the law and related regulations. From the list of sanctions, failure to comply with article 72 of the 2022 regulation under section of customer care and service delivery implies monetary sanction of Rwf50,000 for each violation. Noncompliance with article 18 of the 2022 regulation regarding incident response and recovery plan attracts monetary sanction of Rwf500,000 in case financial service providers failed to recover operations, services or systems as per the set recovery time objectives. It also imposes a penalty of 0.1 per cent of operating income in case of delay to resume critical business operations, services or system impacting the customers as per the set recovery time objectives. Consumer compensation Article 94 of the 2022 regulation relating to financial service consumer protection mandates financial service providers to compensate financial service consumers. In the case of negligence by the financial service provider that causes monetary loss to the financial service consumer, the latter shall have the right to claim compensation on the loss. The computation of the compensation shall be based on the amount lost due to negligence, opportunity cost lost due to the negligence, and damages paid by the financial service consumer if any. A financial service provider should put in place a specific policy for compensation to the financial service consumer and shall publish further details on factors surrounding the compensation process, how the compensation is computed, related claim handling procedures, and the times. In any case, the compensation rate cannot go below the average lending rate as published by the supervisory authority. “These provisions aim to uphold accountability and protect the rights of consumers in the financial services sector,” Nsabimana noted.
