National Bank of Rwanda Launches Interoperability Switch to Connect All Cashless Payment Platforms

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The National Bank of Rwanda (BNR) has announced plans to launch an interoperability switch in 2025, in an effort to connect various cashless payment systems, significantly reducing transaction costs and enhancing financial inclusion across the nation.

Rwanda Central Bank Governor John Rwangombwa confirmed the development and emphasized its transformative potential.

“There are plans to connect all cashless payment systems. For instance, when you want to pay through Mobile Money platforms, you must have money on MTN or Airtel SIM cards,” Mr. Rwangombwa explained.

“Soon, after the interoperability switch, you will be able to use money from your bank account through your bank’s app and pay for a service using MoMo codes from MTN or Airtel. We are optimistic that transaction costs will drastically decrease.” he added.

What is the Interoperability Switch?

An interoperability switch is a technological system designed to bridge different payment networks, enabling smooth communication and transactions between them.

This switch will allow bank accounts, mobile wallets, credit/debit cards, and even digital currencies to interact effortlessly, regardless of their underlying technologies or standards.

The interoperability switch, by linking diverse systems, will create a unified payment ecosystem where users can transfer funds and make payments without worrying about platform compatibility.

For example, a user could initiate a transaction from their bank account and complete it through a mobile money platform such as MTN Mobile Money (MoMo) or Airtel Money.

Read: Absa Bank Introduces Absa Pay, a tap-to-pay Feature for Android Users

One of the key advantages of an interoperability switch is its potential to bridge the gap between urban and rural areas, enabling people in underserved regions to access a broader range of digital payment options, even if they do not use the same platforms as those in urban centers.

In addition to cost reductions, the interoperability switch will enhance the efficiency and security of digital transactions. The streamlined process will minimize delays and errors associated with transferring funds across different platforms.

Moreover, the centralization of payment networks will enable the implementation of robust security measures, safeguarding users against fraud and unauthorized transactions.

This development follows earlier efforts like the rollout of eKash, which was launched to increase financial inclusivity and promote a cashless economy.

Equity Bank Rwanda and RSwitch, Rwanda’s national payment switch, launched the eKash payments platform in June 2024 to broaden financial services for Equity Bank customers by enabling instant money transfers among local banks, mobile money operators, microfinance institutions (MFIs), SACCOs, and fintech companies.

The eKash platform, launched by RSwitch in 2022, is Rwanda’s National Digital Payment System. It’s an interoperable platform that allows seamless fund transfers between banks, mobile money operators, MFIs, SACCOs, and fintech companies.