Methods of Payment

Rwanda’s financial sector supports a broad mix of traditional and digital payment options. Trade participants rely on documentary credits, international money transfer agents, and digital and mobile payment systems that enable real-time fund transfers and e-commerce transactions. The introduction of Rwanda’s National Digital Payment System (RNDPS 2.0, eKash) and eKash Person-to-Merchant (P2M) payments, along with services by MTN Mobile Money and Airtel Money, has transformed cross-border settlements, merchant payments, and business-to-business transactions.

Letters of Credit (LCs), also known as Commercial or Documentary Credits

The letter of credit allows the buyer and seller to contract a trusted intermediary, in this case a bank, that will guarantee full payment to the seller provided the seller shipped the goods and complied with the terms of the agreed-upon letter. The LC serves to evenly distribute risk between buyer and seller since the seller is assured of payment when the conditions of the LC are met, and the buyer is reasonably assured of receiving the goods ordered. This is a common form of payment, especially when the contracting parties are unfamiliar with each other. LCs are irrevocable, which means that once the LC is established it cannot be changed without the consent of both parties. At least four parties are involved in any transaction using an LC: buyer or applicant, issuing bank or Applicant’s bank, beneficiary’s bank or receiving bank, and seller or beneficiary.

Money transfer agents

Exporters and their clients can send money internationally, process money orders, bill payments, and purchase prepaid services through international money agents.  Agents such as Western Union and MoneyGram, along with new entrants like WorldRemit, Wise, and PayPal, provide international transfers.  These services integrate with banks such as Bank of Kigali, Banque Populaire du Rwanda (BPR), I&M, and Ecobank as well as digital wallets for seamless local settlement.

Documentary Collection

To collect payment from a foreign buyer using documentary collection, the seller sends a draft or other demand for payment with the related shipping documents through bank channels to the buyer’s bank. The bank releases the documents to the buyer upon receipt of payment or promise of payment. It is generally safer for exporters to require that bills of lading be made out to shipper’s order and endorsed in blank to allow them and the banks more flexible control of the merchandise. Documentary collections are only viable for ocean shipments.

Drafts (bill of exchange)

A draft (sometimes called a bill of exchange) is a written order by one party directing a second party to pay a third party. Drafts are negotiable instruments that facilitate international payments through respected intermediaries such as banks but do not involve the intermediaries in guaranteeing performance. Such drafts offer more flexibility than LCs and are transferable from one party to another. There are two basic types of drafts:  sight drafts and time drafts.

Open Account

Open account means that payment is left open until an agreed-upon future date. It is one of the most common methods of payment in international trade. Payment is usually made by wire transfer or check.

Credit Card

Some banks now offer buyers special lines of credit that are accessible via credit card to facilitate (even substantial) purchases.

Cash in Advance

Cash in advance is risk-free except for consequences associated with the potential non-delivery of the goods by the seller. Cash in advance is usually a wire transfer or a check. Although an international wire transfer is more costly, it is often preferred because it is speedy and does not bear the danger of the check not being honored. For wire transfers the seller must provide clear routing instructions in writing to the buyer or the buyer’s agent. These include:  the full name, address, telephone, and telex of the seller’s bank and the seller’s full name, address, telephone, type of bank account, and account number.

Merchant MTN Mobile Money (MoMo)

MTN Mobile Money (MoMo), Airtel Money, and Rwanda’s eKash system allow users to store, transfer, and receive funds, pay for utilities, settle merchant transactions, and make cross-border payments.  More than 90% of adults in Rwanda use digital payments weekly, making mobile money the dominant retail payment channel nationwide.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

In 2025, Rwanda’s credit ratings were reaffirmed at B+ ( Fitch and S&P ) and B2 (Moody’s), all with stable outlooks, reflecting strong economic growth prospects, prudent debt management, and improved fiscal stability, despite ongoing external and regional challenges.

Banking Systems

Rwanda’s banking system remains concentrated but is becoming more competitive as foreign banks seek to enter the market. About 76% of all banking assets are held by the five largest commercial banks: Bank of Kigali, BPR Bank Rwanda, I&M Bank, Equity Bank (which acquired COGEBANQUE), and another leading bank.  The Bank of Kigali, partly state-owned, holds over 30% of assets. The sector is stable and well-capitalized, with a capital adequacy ratio of roughly 21%, well above the central bank’s 12.5% requirement. Rwanda’s financial ecosystem includes commercial banks, development banks, cooperative banks, and microfinance institutions.  As of mid-2025, the National Bank of Rwanda registers 15 banks, including ten commercial banks, three microfinance banks, one development bank, and one cooperative bank. Additionally, there are 438 Savings Credit and Cooperatives (SACCOs) and 18 limited liability microfinance institutions.

Local banks operate in both local currency and dollar-based accounts.  While most suppliers are paid through wire transfers to their domicile bank accounts, many investors eventually open a local account at one of the main local commercial banks.

Starting in 2018, the Rwandan Central Bank fixed a capital requirement of twenty billion Rwanda Francs ($5.8 million) for commercial banks. Capital reserve requirements were 4% in September 2023, and the loan rate was 7.5%.  All commercial banks have international correspondent banks operating in major cities of the world.  ATMs are available but more limited than in the United States. Commercial banks are authorized to provide loans in foreign currency.

The private sector has limited access to credit instruments. Most Rwandan banks are conservative, risk-averse, and trade in a limited range of commercial products, though additional products are becoming available as the industry matures and competition increases. While the use of credit cards is becoming more popular, Rwanda, especially outside of Kigali, remains primarily a cash-based or mobile cash money-based economy.  For most foreign visitors, credit cards can be widely used (including at hotels, restaurants, grocery stores, and tourist centers), though some local and small establishments may be cash or mobile payments only.

As of 2025, Rwanda’s digital payment system has expanded rapidly into nearly all sectors of the economy. According to the National Bank of Rwanda, about 86% of adults now use mobile money, and over 2 million users actively transact through the national platform eKash, processing more than Rwf 37 billion by mid‑2025.  Digital payments reached roughly US $2.6 billion in total transaction value in 2025, with annual growth projected at over 10%.  While mobile money remains the leading method of electronic payment, credit and debit card use continues to rise, supported by greater interoperability between banks and fintechs. Despite this progress, cash is used for many daily transactions, especially in rural areas. 
 

Resources 

• List of licensed banks
• Licensing Requirements for banks.
• For more information on the banking system please read the section Capital Markets and Portfolio Investment of the Investment Climate Statement.

Foreign Exchange Controls

Foreign exchange remains generally liberalized, with commercial banks authorized to buy and sell foreign currency under an administered float regime controlled by the National Bank of Rwanda. Stricter penalties for unauthorized foreign currency transactions have been introduced, and exporters must continue to repatriate earnings within three months of shipment and ensure declared values match actual proceeds (BNR).

There are no legal restrictions on capital transfers in and out of Rwanda. Investors can obtain foreign exchange and make transfers at any authorized bank in order to repatriate profits and dividends and make payments for imports and services. However, some investors have reported problems with their ability to perform currency transactions. The National Bank of Rwanda holds daily foreign exchange sales freely accessed by commercial banks. Bureaucratic hurdles cause delays in processing and affect transfers, though they are less severe than in previous years. Although there is generally no difficulty obtaining foreign exchange in Rwanda, some investors reported temporary, severe foreign exchange shortages and delays in hard currency payments by the government for goods and services that can be significantly delayed.  Foreign exchange shortages are partly driven by the country’s trade deficit, which creates instability in the domestic currency market.

U.S. Banks and Local Correspondent Banks

Most of the larger commercial banks in Kigali maintain correspondent relations with reputable U.S. banks, such as Citi. There is no U.S Exim country limitation for Rwanda. Both the public and private sectors are eligible.

For additional information, visit U.S. Department of State Investment Climate Statements.