The value of funds transferred via Mobile Money grew by 450 per cent between January and April this year to reach Rwf 40 billion (over $ $42 million), data from Rwanda Utilities Regulation Authority shows.
The development was among other things a result of a move by Central Bank and local telcos to temporarily remove charges on transfers between bank accounts and mobile wallets, mobile money transfers as well as removing merchant fees on payments for all contactless transactions to reduce chances of COVID-19 transmission.
While these are only initial findings, the authors of the analysis noted that among the lessons to borrow from the development include the impact of slashing or eliminating fees on money transfers to improve digital payment chances in the competition with cash.
"Although the sustainability of this approach remains to be seen given the sacrifice in fee revenue required from mobile money operators, it provides an on-ramp for the use of digital financial services by those who would otherwise have used cash.
In October last year, it emerged that in a majority of Kigali's business outlets, a client paying for a product or service via Mobile Money was often required to add at least Rwf300 considered as withdrawal charges.
