By using the new payments system, a trader in Kenya can pay for goods in any of the three region’s currencies without necessarily changing them into a customer’s preferred mode of payment. A customer instructs their commercial bank detailing the currency they intend to transfer across the border and then the bank will conduct the transaction through the EAPS.
Rwanda and Burundi are also expected to join the system, once they set up the real-time gross settlement (RTGS). The system is part of larger plan by the East African Community partner States to integrate their money and capital markets that has been under development for three years.
All commercial banks in Kenya, Tanzania and Uganda are participants in the system and will offer same day settlement of funds.
Check out our Cross-border Ecommerce Research section here for more info on specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as cross-border ecommerce legislation & regulation in developed and emerging countries.
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