Rwanda and Tanzania have hatched Cross-Border Payment Systems Proof of Concept.

The East African Community is reportedly taking a major step towards establishing a seamless regional instant payment ecosystem.

Experts from Rwanda and Tanzania have convened in Zanzibar for a high-level technical meeting to advance implementation of the Rwanda–Tanzania Cross-Border Payment Systems Proof of Concept (PoC).

The two Partner States initiated the technical interlinking of Tanzania’s Instant Payment System (TIPS) and Rwanda’s National Payment Switch (RSwitch).

The Zanzibar meeting builds on progress achieved during the inaugural implementation meeting in Kigali, Rwanda, in November 2025.

The current engagement focuses on strengthening the governance, business, and risk management frameworks required to support the successful implementation, operational resilience, and long-term sustainability of the cross-border payment system.

The Chairperson of the meeting, Nestory Nicholas Maro, Assistant Manager, National Payments Directorate, Bank of Tanzania, noted the meeting was building on progress from Kigali, with the aim to finalize the minimum functional, technical, operational, and regulatory requirements for cross-border interlinking the two countries’ instant payment systems, with an initial focus on person-to-person transfers.

“Undertaking a Proof of Concept (PoC) for the interlinking of RSwitch and TIPS represents a practical and strategic approach, as this PoC will enable us to comprehensively assess the similarities, differences, opportunities, and challenges associated with integrating our two platforms,” said Mr. Maro.

The initiative forms part of the implementation of the EAC Cross-Border Payments System Masterplan, which aims to establish an integrated regional payment infrastructure that enables secure, affordable, and real-time cross-border transactions across the East African Community.

During the week-long meeting, experts are finalizing the governance and institutional arrangements required to operationalize the initiative, including establishing joint steering and technical working groups, service-level agreements, oversight mechanisms, and change management procedures.

The experts are also reviewing a sustainable business and economic model covering transaction pricing, revenue-sharing arrangements, foreign exchange conversion, and market incentives to drive adoption by financial institutions, businesses, and consumers.

Further, the experts are designing a comprehensive Cross-Border Risk and Compliance Framework that addresses settlement, liquidity, legal, operational, and cybersecurity risks, as well as harmonized fraud management, business continuity, dispute resolution, and regulatory reporting arrangements to support the safe, secure, and resilient operation of the cross-border payment system.

The Proof of Concept (PoC) is designed to facilitate cross-border retail and instant payments within the EAC by directly interconnecting national Fast Payment Systems.

It addresses longstanding challenges affecting intra-regional payments, including high transaction costs, limited cross-border payment channels, slow transaction processing, and inadequate consumer protection mechanisms.

By overcoming these barriers, the PoC aims to enable faster, more secure, and more affordable cross-border payments, while supporting regional trade, remittances, and financial inclusion across the EAC.

The Rwanda–Tanzania payment systems interlink is the EAC’s flagship PoC, demonstrating the feasibility of interlinking national retail payment systems to enable instant cross-border payments.

By making cross-border transactions faster, more affordable, and more efficient, the pilot will provide a scalable model for progressively expanding regional payment interoperability across all EAC Partner States, supporting the Community’s broader objective of deepening regional economic integration and increasing intra-EAC trade.

Once operational, the interlinked payment system will enable individuals and businesses in Rwanda and Tanzania to send and receive money instantly using their existing bank accounts and mobile money wallets.

The initiative is expected to reduce the cost of cross-border payments, expand access to formal financial services, support small-scale traders and enterprises, facilitate remittances, and promote regional trade, investment, and financial inclusion.

Implementation of the EAC Cross-Border Payments System Masterplan is supported through the Eastern Africa Regional Digital Integration Project (EARDIP).

The Eastern Africa Regional Digital Integration Project (EARDIP) is a flagship initiative of the East African Community (EAC), financed by the World Bank to advance digital market integration, connectivity, and inclusion across Eastern Africa.

Under the project, the EAC is advancing interoperable digital payment infrastructure, harmonizing regional policies and standards, strengthening cybersecurity, and building institutional capacity to support secure, inclusive, and efficient digital financial services across East Africa.

The meeting has brought together experts from the Central Banks of Rwanda and Tanzania, national payment system operators, payment service providers, the EAC Secretariat, and development partners, including the World Bank and GIZ.

The outcomes of the meeting will inform the next phase of implementation as the two Partner States move closer to launching the first operational cross-border instant payment corridor under the EAC Cross-Border Payment System Masterplan, providing a foundation for future regional interoperability across the East African Community.

The Rwanda–Tanzania Cross-Border Payment Systems Proof of Concept (PoC) is a flagship initiative under the EAC Cross-Border Payment System Masterplan, which provides the Community’s strategic framework for developing an integrated, interoperable, and inclusive regional payment ecosystem.

As the first bilateral payment corridor under this framework, the Rwanda–Tanzania interlinking will serve as a model to inform the phased rollout of cross-border payment interoperability across the East African Community.

As a PoC, the initiative currently involves only Rwanda and Tanzania, in line with the principle of variable geometry under the Treaty for the Establishment of the East African Community, which allows groups of Partner States to advance at different speeds in areas of regional cooperation.

The PoC is designed to validate the technical, operational, legal, and governance arrangements required for cross-border interoperability before progressively expanding to other Partner States as their national Fast Payment Systems become ready for interconnection.

To support this phased expansion, Partner States are considering the development of an accession framework that will define the eligibility requirements, procedures, and governance arrangements for onboarding additional Partner States into the regional cross-border payment system.