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From Cash to Cashless: Leveraging the Potential of Digital Financial services in Rwanda

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  • Munyengera, Ggombe Kasim
  • Agnes, Mutuyimana
  • Seth, Kwizera
  • Precious, Akampumuza

Abstract

Digital financial inclusion in Rwanda has grown from 46% of adults in 2016 to 66% in 2020. The nature of payments has also evolved, shifting from peer-to-peer transactions to more sophisticated ones, such as tax payments. According to the 2020 Finscope survey, 94% of commercial banks now offer some form of electronic payment. This progress notwithstanding, cash remains the preferred method of payment for groceries (98% of respondents), electricity (52%), medical fees (60%), education (44%), and personal spending (60%). Critical impediments to further DFS development and adoption include limited interoperability among platforms and services of different service providers and low levels of digital literacy. The mid-term evaluation of the National Strategy for Transformation revealed that only 24% of adults were digitally literate in 2021, less than halfway to the target of 60% by 2024. Low levels of awareness of DFS products, unreliable networks, especially in rural areas, and low levels of trust partially motivated by cyber insecurity are additional impediments to being addressed.

Suggested Citation

  • Munyengera, Ggombe Kasim & Agnes, Mutuyimana & Seth, Kwizera & Precious, Akampumuza, 2025. "From Cash to Cashless: Leveraging the Potential of Digital Financial services in Rwanda," Working Papers b37c4ced-2a36-4e7e-8c3c-2, African Economic Research Consortium.
    • Handle: RePEc:aer:wpaper:b37c4ced-2a36-4e7e-8c3c-2ed0552a17ce
    Note: African Economic Research Consortium
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