The use of mobile phones to make payments and save money is growing but at a snail’s pace.

This is because the transactions are still largely dominated by money transfers services despite telecom operators introducing other services such as payment of utility bills.

Mobile phone users are increasingly opening mobile accounts on various networks mainly for sending and receiving money.

The numbers of subscribers, transactions and value have increased, according to the Monetary Policy and Financial Stability Statement 2014, which was recently released.

Christian Hahirwa is a subscriber to all three mobile operators and uses their mobile money services.

“I use mobile to send, receive money and pay electricity bills,” he said.

Money transfers and electricity purchase still dominates transactions, despite an increase in mobile money services subscription.

In addition to convenience and cash security, the use of other available mobile payment schemes boosts payment modernisation; hence reduce the cost of issuing banknotes.

The central bank has a three-year cycle on printing each denomination based on the projections of the notes in stock and those in circulation.

Cost of printing bank notes

According to official data from the central bank, the notes issued in 2014 cost the country Rwf74.4 billion for 58,260,000 bank notes.

“It mobile payment reduces risks associated with carrying cash in the pocket and saves time. For instance, at night one can buy power without leaving home,” Mr Hahirwa said.

Water and Sanitation Corporation (Wasac) has launched electronic payment option for water bills to reduce inconveniences through MTN mobile money, mobile banking and Internet banking.

Wasac said at the launch, it would undertake an intensive public awareness to its customers on using electronic payment options.

Salama Urumuli an assistant manager at a coffee shop in Kigali city centre said despite not having a merchant account for mobile payment, the coffee shops accepts payments using visa cards.

“The challenge is when the network is poor because that makes the transaction fail and the account of card holder is not credited,” MS Urumuli said.

Recently, Minister for Youth and ICT Jean Hilbert Nsengiyumva said a lot needs to be done to promote point of sale acceptance so that mobile phone and visa cards can be used at many business outlets for transactions.

“It’s called mobile wallet’ now more than 50 per cent have those wallets. But at the point of sale where I need to spend money there is no acceptance,” Mr Nsengiyumva said.