Cell phone operators, Rwandatel and Tigo Rwanda, have announced plans to launch Money transfer services (Mobile money), a platform that allows subscribers to use their mobile phones to transfer money.
The technology also facilitates payment for goods and services as well as conducting monetary transactions.
Subject to central bank approval, the two telecom operators have promised to launch the service this year. This is one of the latest in a series of new innovations by mobile operators, which also reflects the increasing competition in Rwanda’s telecom market.
MTN was licensed to carry out Mobile Money payment services and has over 200,000 subscribers and about 300 agents countrywide.
The service has not only created hundreds of jobs but has also helped many Rwandans use mobile phones as bank accounts, hence delivering financial services at affordable costs to low income customers.
With telecom companies entering the payment service business, in partnership with commercial banks, they are extending access to financial services to people not previously reached by banks.
Rwanda has more than 3.5 million mobile subscribers. Mobile Money payments will revolutionalise the delivery of financial services in Rwanda and empower people to make cashless transactions.
To sustain the expansion and advantages of this initiative, it is important that the players adhere to the financial sector regulatory practices.