BNR Moves to Curb Merchants Forcing Customers to Pay via Phone Numbers Instead of Codes

The National Bank of Rwanda (BNR) has announced new measures aimed at stopping merchants who deny customers the option of paying through official merchant codes and instead require them to send money to personal phone numbers.

The central bank said the practice is unacceptable and violates existing regulations governing electronic payments.

The move follows complaints from customers who say that in various shops and markets, some traders refuse to provide payment codes even when they have them and instead give out phone numbers for direct transfers. In some cases, customers are allegedly asked to add extra money to cover transaction fees.

Several customers who spoke to the media said paying via merchant codes is faster, safer, and more convenient, but that some traders deliberately avoid using them.

MANIRIHO Epiphane, a resident of Huye District, said: “When you go to pay, they give you a phone number and tell you to send the money there. If you ask why they are not using the code, they say it is not working or that they removed it. Some even ask you to add extra money, claiming it is for transaction fees.”

Another customer, Hagenimana Pierre, added: “This slows down the national digital payment program. We want the codes that were introduced to be used properly because they were meant to make payments easier for us.”

Customers argue that being charged unauthorized additional fees causes financial loss and undermines consumer protection principles.

Dr. Moïse Bigirimana, Head of Consumer Protection at BNR, said that requesting payment via a phone number instead of an official merchant code is inappropriate and contrary to established regulations. “Using merchant codes is the approved method because it ensures proper tracking of transactions. Asking for a phone number and forcing customers to pay extra charges is not acceptable. We have put in place measures to monitor and take action against those who fail to comply,” he said.

He emphasized that such practices undermine the country’s cashless payment agenda and that those who continue to violate the rules will face penalties in accordance with the law.

Rwanda’s digital payment drive was introduced to reduce reliance on cash, increase transparency in business transactions, and facilitate smoother transactions between buyers and sellers.

BNR established code-based payment systems including “Lipa” mobile payments and merchant codes to simplify transactions and protect customers from unauthorized charges. These systems also enable better transaction tracking and facilitate tax compliance among traders.

In recent years, the Government of Rwanda has intensified efforts to promote cashless payments, especially during the COVID-19 pandemic, when handling cash was considered a potential health risk.

Since then, digital payments have grown significantly. According to BNR data, in the 2024/2025 fiscal year, the value of digital transactions as a percentage of GDP increased from 211 percent in June 2024 to 321 percent.

This growth indicates increasing public trust in and adoption of digital payment systems, although a small number of merchants continue to disregard the regulations.

BNR is urging customers to report merchants who refuse to use official payment codes or who impose unauthorized additional charges, so that appropriate action can be taken and consumer rights protected.

The central bank maintains that the use of merchant codes is a cornerstone of Rwanda’s digital economy strategy and calls on both consumers and traders to play their part by complying with the established regulations.