For many years, cash was the main way people in Rwanda paid for goods and services. From small shops in Kigali to markets in rural areas, physical money was always present. But in recent years, things have started to change. The rise of digital money, mobile money, bank apps, and online payment is making people ask an important question: is cash slowly dying in Rwanda?
The Rise of Mobile Money
One of the biggest changes in Rwanda’s financial system came with the growth of mobile money. Services like MTN Mobile Money and Airtel Money have allowed people to send, receive, and store money on their phones. These services are now used by millions of Rwandans.
Mobile money has many advantages. People no longer need to carry large amounts of cash, which can sometimes be unsafe. It is also much easier to send money to family or friends in different parts of the country. A person in Kigali can send money to a relative in Nyagatare or Huye instantly, without the need for a bus trip or a risky hand-to-hand exchange.
During the COVID-19 pandemic, digital money became even more popular. To reduce the risk of spreading the virus, the government encouraged people to use mobile money instead of cash. This accelerated a trend that had already started, showing many people that digital payments are faster and safer.
Government Push for a Cashless Economy
The Rwandan government has a clear vision: it wants to build a cashless economy. In recent years, different policies have been introduced to promote digital payments. Taxes and other government services can now be paid through mobile money or bank transfers. Even public transport in Kigali is going cashless with smart cards and tap-and-go systems.
The government believes that reducing cash use has many benefits. It makes the economy more transparent, helps reduce tax evasion, and limits corruption. It also supports financial inclusion, giving more people access to modern banking and saving tools.
The Role of Banks and Fintech
Banks in Rwanda have also joined this movement. Today, most banks offer mobile apps that allow people to check balances, pay bills, or transfer money. ATMs are still common, but more people are learning how to use banking apps.
In addition, new financial technology companies (fintechs) are playing a role. They create digital wallets and innovative payment systems that help businesses and customers move away from cash. For example, many supermarkets, restaurants, and even small shops now accept mobile payments.
Is Cash Really Dying?
Despite the growth of digital money, cash is not disappearing yet. In fact, cash is still important in many parts of Rwanda, especially in rural areas. Some people do not own smartphones or do not know how to use digital financial services. Others prefer cash because it feels more “real” and easier to manage.
Another challenge is the cost of digital transactions. While sending money by phone is convenient, there are sometimes fees involved. For people with very low incomes, every franc matters, and they may choose cash to avoid extra charges.
There are also moments when digital systems fail, network problems, power cuts, or app errors. In these cases, cash becomes the only reliable option.
What Ordinary People Say
According to Access to Finance Rwanda (AFR) which supports the development and provision of financial services including savings, credit, insurance, investment, payments, and remittances. It shows that 75 per cent of youth possess mobile money accounts, while 85 per cent use mobile money.
The report indicates 81 per cent (2.9 million) of youth reported savings in the past 12 months . This shows that many young people in Rwanda, especially in cities, see digital money as the future. They like the speed and convenience of mobile payments. Some say they no longer carry cash at all, and they rely only on their phones.
However, older generations often remain more comfortable with cash. A farmer selling bananas at a local market may prefer cash because it is simple and immediate. For some, learning digital systems feels complicated.
This shows that while digital money is growing fast, the shift away from cash is not equal across society. Urban areas are moving faster, while rural communities are changing more slowly.
The Future of Payments in Rwanda
Looking ahead, it is clear that digital money will continue to grow. With government support, better technology, and more education, more Rwandans will join the digital economy. As internet coverage and smartphone use expand, even rural communities will have more access.
But cash will not disappear overnight. It may take many years before Rwanda becomes truly cashless. In the meantime, both cash and digital money will continue to exist side by side.
Conclusion
So, is cash in hands slowly dying in Rwanda? The answer is yes and no. Yes, because digital money is growing very fast, and more people are getting used to paying with their phones instead of physical money. But also no, because cash is still important, especially in rural areas and for people who feel more comfortable with traditional ways.
The story of Rwanda’s money is still being written. What is clear is that the future will be more digital than ever before, and the shift towards a cashless society is already well underway.
Brenna AKARABO
RADIOTV10
