If you’ve ever paid for airtime using your phone, sent money to a friend, or received payment via MTN Mobile Money, then you’ve used a mobile wallet—also known as e-money or e-wallets. In Rwanda, mobile money isn’t just convenient. It’s essential. Thanks to platforms like MTN MoMo and Airtel Money, mobile money has revolutionised how people manage their finances, especially those without access to traditional banks. As of 2024, over 73 per cent of adults in Rwanda use digital financial services, a massive leap from just 30 per cent four years prior. But beyond the basics, how well do you understand these tools, and are you using them to your full advantage? What Is Mobile Money? Mobile money (m-money) is a way to store and transfer money using your mobile phone. Your phone number becomes a virtual account that lets you: Send and receive money Pay for goods and services Buy airtime or electricity Access loans or savings products Unlike banks, mobile wallets don’t require paperwork, formal ID, or even a smartphone. That’s why they’re widely used, especially in rural areas. Benefits of using mobile money wisely 1. Convenience You can transact anytime, anywhere—no queues, no travel costs. Need to send school fees to your child in another district? One click and it’s done. 2. Safety Mobile money reduces the risk of carrying cash, so you don’t have to worry about potential theft or accidentally losing money. Your account is PIN-protected, and providers like MTN and Airtel have added layers of security. 3. Affordability Fees are generally low, and many services are free or bundled with promotional offers. 4. Financial access Mobile money bridges the gap for those who are unbanked—people without access to formal financial institutions (ibigo by’imari bisanzwe). Common mistakes to avoid Despite the advantages of using mobile money, there are some drawbacks to be aware of and some pitfalls you’ll want to sidestep. Mistake #1: Keeping too much cash in your mobile wallet It’s smart to keep some cash available. However, a wallet overflowing with e-money can be tempting to spend. Instead, keep no more than what you'd spend in a week. If you’re trying to save, move funds into a dedicated savings account (like MTN MoKash or Airtel Tubike). Mistake #2: Sharing your PIN or phone Even with family, never share your personal identification number. Mobile money fraud is rare but rising—especially through fake calls or messages pretending to be from MTN or Airtel. This calls for alertness. (Biba bisaba kuba maso). Beware of specific red flags like: Requests to share OTP codes Calls asking to “verify” your PIN Messages claiming account suspension requiring immediate action Mistake #3: Not tracking your transactions Use your provider’s USSD menu or app to check balances and review activity. Every small transaction adds up. How to use mobile money for better financial habits Set Savings Goals with Mobile Tools: MTN’s MoKash and Airtel’s Tubike allow users to set savings goals and even earn interest. You can automate small deposits weekly or monthly—perfect if you’ve already started budgeting and want to grow your savings. Track Your Spending: Download a budgeting app or simply note your daily mobile money use in a notebook. This helps identify where your money is going, whether that’s motos, airtime, eating out, school fees or something else. Separate Business and Personal Funds: If you run a small business or have a side hustle (akazi ku ruhande), consider keeping a separate wallet for business income. This prevents mixing personal and business money—something that causes confusion and overspending for many entrepreneurs. Develop positive credit habits: If you’re using services like MTN’s MoKash or considering a digital loan, maintain consistent transaction patterns and always repay on time. This builds a positive digital footprint that lenders increasingly value. Even regular bill payments through mobile money demonstrate financial reliability to potential creditors. The links between mobile money and establishing credit While mobile money transactions don’t automatically appear on traditional credit reports, they’re increasingly valuable as ‘alternative credit data’ that lenders use to assess borrowers who lack formal credit histories. This is particularly important in Rwanda, where many people are building their first financial profiles. Mobile money creates a digital record of financial behavior—consistent top-ups, bill payments, and transaction patterns—that demonstrates financial responsibility to potential lenders. In Rwanda, mobile money providers like MTN and Airtel are growing in importance in the credit ecosystem, though not necessarily through traditional credit bureau reporting to TransUnion Menyesha. MTN’s MoKash lending service demonstrates how mobile money transaction patterns are being used to assess creditworthiness directly by providers. While these transactions may not appear on your formal credit report, they’re creating valuable financial behavioral data that lenders—particularly fintech companies—use to make lending decisions for people without traditional banking histories. Digital money is here to stay Rwanda is quickly moving toward a cashless economy. The government has supported digital payments for everything from taxes to public transport, such as Tap & Go cards in Kigali. Even Umurenge SACCOs and local cooperatives are increasingly offering digital integration. The takeaway? Learning how to use mobile money strategically is no longer optional. It’s essential for economic empowerment and financial security. Bottom line Mobile money and e-wallets are not just tools for sending and spending. Used wisely, they’re gateways to saving, building credit, and growing wealth. So take a moment to check how you're using your mobile wallet. Is it helping you move forward, or just making it easier to spend? Either way, you’re in control. And now’s the perfect time to start using mobile money not just for convenience—but for financial progress. Lynnette Khalfani-Cox is a personal finance expert, speaker, author of 16 books including the New York Times bestseller “Zero Debt,” and the co-founder of TheMoneyCoach.net. She and her husband Earl Cox are expanding their financial education firm in Rwanda to support financial literacy, economic, and entrepreneurship initiatives. Money Moves is a bi-weekly column providing practical wisdom and strategies for building wealth and financial security in Rwanda's evolving economy.
