The race for customers could become even tighter between banks and telecoms as financial institutions move to reclaim customers lured away by mobile money services.

Mobile money service has been a thorn in the flesh of bankers after it became the choice for many ordinary people, especially in areas that have no or limited presence of banks.

Therefore, the rush by banks to adapt the mVisa facility has been seen by sector players as an effort to curtail the growing telecom operators’ mobile money market.

With the rollout of mobile money agents countrywide and introduction of innovative products that offer timely money transactions, many people prefer mobile money to using banks.

Inter-switch is an integrated mobile platform, which gives real time and online transaction switching, helping a mobile phone owner to access his or her bank account using their mobile phone.

Visa country director, Ginger Baker, believes that the mVisa has the ability to share its infrastructure and ease the cost of mobile payment systems among players to boost access to financial services in the country.

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He said, unlike other mobile money platforms, mVisa gives the account holder access to financial services from any mVisa agent or merchant regardless of financial institutions or mobile money providers, something that will boost Rwandans’ mobile banking preference and increase financial inclusion.

The two banks that have embraced mVisa are offering services free of charge to improve their competitive edge against the telecoms.

“The Bank of Kigali mVisa is a digital wallet that allows one to deposit or withdraw cash, send money, top-up airtime, pay bills, buy items and check account balance at no cost,” said Lawson Naibo, the bank’s chief operating officer while launching the product last month.