- For the citizens of Rwanda and Tanzania, this integration promises to transform daily financial interactions.
- Individuals will be able to transfer money to family, friends or businesses across borders in real time, directly from their existing bank accounts or mobile money wallets, eliminating the delays and complexity of current systems.
- The new payments platform being tested is poised to transform everyday financial transactions in East Africa, moving the bloc closer to promises of economic integration.
Rwanda and Tanzania have been chosen to test the rollout of National Payment System Switches, a new platform that will revolutionize the way merchants and individuals send and spend money within the East African Community bloc.
According to a statement from The Exchange, the initiative is a crucial measure in promoting the realization of instant, low-cost cross-border money transfers for both citizens and businesses in a region that is a leader in embracing mobile payments, such as Kenya’s M-PESA.
The initiative, which entered the technical implementation phase at an ongoing high-level meeting in Kigali, will connect Tanzania’s Instant Payment System (TIPS) with Rwanda National Payment Switch (RSWITCH).
Once the link is operational, individuals and businesses in both countries will be able to send and receive money between bank accounts and mobile money wallets seamlessly and in real-time.
Rwanda and Tanzania are testing East Africa’s regional payment system
“This preparatory work marks a crucial milestone in our agenda for the integration of regional payment systems, bringing us closer to a single regional instant payments ecosystem that will enable secure, affordable and real-time transactions across borders,” Eng said. Daniel Murenzi, EAC’s chief information technology officer.
In his remarks, the chairman of the meeting, Mr. Fabian Ladislaus Kasole, Assistant Manager, Supervision and Policy, National Payments Directorate, Bank of Tanzania, reaffirmed the collective commitment.
“As a region, we remain committed to establishing a robust technical and operational framework that will ensure the successful interconnection of our national retail payment systems, ultimately improving the efficiency of cross-border payments and financial inclusion across the region.”
The integration of Tanzania’s TIPS and Rwanda’s RSwitch forms the core of a strategic Proof of Concept (POC) pilot. This phased approach aims to demonstrate the technical and operational feasibility of a direct, functional transition to cross-border payments within the EAC.
This crucial bilateral (Tanzania-Rwanda) model serves as a pioneering model for future expansion to all EAC Partner States. The initiative serves as a practical and scalable first step and lays the fundamental foundation for the future pursuit of a fully integrated, centralized regional digital payments market.
Make it possible to transfer money to family, friends or companies across borders
For the citizens of Rwanda and Tanzania, this integration promises to transform daily financial interactions. Individuals will be able to transfer money to family, friends or businesses across borders in real time, directly from their existing bank accounts or mobile money wallets, eliminating the delays and complexity of current systems.
Importantly, by creating a direct pathway between national switches, the initiative is expected to significantly reduce transaction costs, making cross-border payments more affordable and accessible for all.
The economic consequences for businesses and traders are equally profound. The ability to make and receive instant, secure payments will vastly improve commerce, allowing businesses to seamlessly settle invoices with suppliers and partners. This efficiency reduces operational friction and unlocks new opportunities for growth and market expansion within the region.
Furthermore, by leveraging the digital payment platforms that millions of people already use every day, this initiative represents a quantum leap in financial inclusion. It extends the reach of formal financial services by making cross-border transactions as simple as a domestic transfer, enabling a broader segment of the population, from small-scale traders to individual consumers, to participate more fully in the regional economy.
The ongoing technical preparations for the interconnection represent the first tangible implementation of the EAC Cross-Border Payment System Masterplan and directly support the strategic ambitions of the EAC Heads of State for deeper regional financial integration.
The Regional Digital Integration Project for East Africa (EARDIP), financed by the World Bank and coordinated by the EAC Secretariat, will play a key role in supporting the implementation of the EAC Cross-Border Payment System Masterplan. As a regional flagship initiative, EARDIP supports laying the foundation for a modern and connected regional payments ecosystem by strengthening the interconnection of payment systems between partner states.
The project also supports the development of cross-border and local digital networks, allowing even rural and remote communities to benefit from faster, more secure and more affordable money transfers. This includes supporting real-time payments, cross-border mobile money services and direct transactions between banks and financial platforms across the region.
EARDIP also supports the harmonization of policies and standards that guide digital financial services in East Africa. By promoting common rules, shared standards and strong cybersecurity and data protection systems, the project will ensure that cross-border payments are safe and secure.
Technical support and capacity building
In addition, EARDIP will provide technical support and capacity building to help national institutions strengthen and manage their digital payment systems. Through these efforts, EARDIP will make it easier for citizens and businesses to send and receive money across borders, boosting regional trade, inclusion and economic growth.
The technical meeting from 10 – 14 November 2025 in Kigali, Rwanda brought together representatives from the Central Banks, National Payment Systems, AfrikaNenda, Mojaloop Foundation and the EAC Secretariat.
The technical teams are expected to hold a series of meetings to discuss various issues, including an interoperability framework to address technical integration and operational designs, as well as regulatory alignment, governance and institutional arrangements, economic and business model, and strategic and regional alignment.
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