Executive Summary
Problem Statement
Fragmentation and inefficiency in current digital payment systems prevent Rwanda from realizing broad-based, low-cost cashless payments and affordable cross-border remittances.
Key Challenges:
- • Remittance fees reaching 30% on US$200 transfers
- • Cash circulation rose 51.53% (June 2019-2022)
- • Cash withdrawals equal 72% of GDP
- • Mobile money dominates 70% of transfers, limiting competition
Market Issues:
- • Payment rail constraints with high fees
- • Limited interoperability between FSPs
- • Slow settlement times
- • Market concentration limiting innovation
XPI Solution Overview
The X Payments Interface (XPI) introduces a hybrid CBDC architecture that enables both cash-like privacy/security and account-linked compliance, significantly lowering remittance costs and broadening financial access across Rwanda.
Technical Architecture
Core Components
Universal Addressing
BNR issues X Business Addresses (XBA) for FSPs while FSPs issue X Payment Addresses (XPA) for users/clients, universally accepted across all FSPs.
Secondary Batching Rail
XPI processes e‑FRW on a secondary batching rail and returns compressed batches to RNPS/RIPPS for final settlement.
Hybrid CBDC Model
Combines token-based privacy for cash-like transactions with account-based compliance for regulatory oversight and KYC/AML requirements.
Integration Capabilities
FSP Platform
Comprehensive APIs for banks, MNOs, and fintech providers to integrate with the XPI ecosystem seamlessly.
Commerce Suite
Merchant acceptance tools including X Cards, HCE (Host Card Emulation), and XPI-linked POS systems.
Mobile SDK
Developer tools for creating mobile applications that leverage XPI for payments and financial services.
Transaction Flow
Initiation
User initiates transaction using XPA address
Processing
XPI batches and compresses e‑FRW transactions
Settlement
Batches submitted to RNPS/RIPPS for final settlement
Confirmation
Real-time confirmation across all FSPs
Implementation Roadmap
Phase 1: PoC
6 months
- • Set up XBA registry and XPA directory
- • Integrate 2-3 FSPs
- • Pilot P2P and merchant flows
- • Execute user research
Phase 2: Pilot
6-9 months
- • Expand to leading MNOs and banks
- • Add G2P/P2G capabilities
- • Roll out secure-element cards
- • Enable bilateral cross-border corridor
Phase 3: Soft Launch
6-12 months
- • Widen merchant acceptance
- • Introduce X Cards/HCE
- • Add programmable payments
- • Set fees and limits
Phase 4: Scale
Ongoing
- • Full RNPS/RIPPS coverage
- • EAC corridor expansion
- • Continuous monitoring
- • Adaptive policy framework
Innovation Potential & Market Impact
Key Innovations
Differentiation
Secondary batching rail that reduces congestion and cost while preserving central bank settlement finality, unified addressing (XBA/XPA), and hybrid token/account operation for privacy and compliance.
Market Disruption
Counteracts duopolistic fee dynamics and siloed rails by offering a universal, interoperable, open-API pathway to CBDC services atop existing national infrastructure.
Ecosystem Impact
Economic Transformation
XPI will foster competition, merchant acceptance, and programmable payment innovation, accelerating progress toward a cash‑lite economy and lowering systemwide cash-management costs.
Regional Replicability
The modular architecture and standards-friendly APIs ease portability to EAC settings and future wholesale/retail CBDC interoperability scenarios.