EQUITY BANK MOVES TO ENROL ATM USERS IN RWANDA

The launch of instant ATM card issuance in Rwanda by Equity Bank has created a new battlefront for customers, which could increase the uptake of plastic money services.

It previously took an average of two weeks to have a card processed but the Equity Autobranch Visa Card also comes with many utilities including Europay, MasterCard and Visa technology, which ensures security and global reach of the chip cards.

The Autobranch Visa card enables customers to pay for goods and services at merchant outlets such as supermarkets, fuel stations, hotels, restaurants and shops.

“In order to remain relevant in the rapidly changing financial services industry; we have to ensure that we cater for all the unique needs of our customers,” said Equity Bank Rwanda managing director Samuel Kirubi.

The use of electronic payments in Rwanda is still low compared with neighbouring countries.

Central bank figures show that between 2012 and 2013, the number of ATMs increased by 14 per cent from 292 to 333 while the number of points of sale terminals increased by 42 per cent from 666 to 946. The number of credit cards increased by 102 per cent from 418 to 845 during the same period.

Limited public awareness

Industry stakeholders attribute this to limited public awareness but acquiring a credit card is still expensive for ordinary Rwandans with the cheapest being Rwf3500 ($5.1).

“Uptake has been slow, Rwanda has good security, which I wish Kenya had. People still carry bags with money on the street. Because of insecurity in other countries nobody wants to carry cash, so they use cards,” Equity Bank Rwanda ICT and channels solutions manager Paul Sewe Omany said.

Mr Omany said electronic payments would gradually pick up with customer education. The value of transactions done through cards increased by 44 per cent from Rwf180.6 billion ($262.07m) in 2012 to Rwf260.6 billion ($377.2m) in 2013.

The government has since 2011 been pushing for electronic payments after signing agreement with Visa International to upgrade the country’s electronic payments infrastructure.

Part of the plan is to make cash readily available to visiting tourists and business travellers by connecting the country’s ATMs to Visa’s global network, opening up access to more than 15,500 banks and nearly two billion cards.

Source: The East African