The Maldives Monetary Authority (MMA) has released its latest Payments Bulletin, highlighting a dramatic shift towards digital financial technologies in 2024, with account transfers, card payments, and the Favara instant payment system rapidly replacing traditional transaction methods.
The data reveals a significant surge in digital transactions, with account-to-account transfers reaching an impressive 132 million transactions valued at over MVR 768 billion—a 20 percent increase from the previous year. Favara, the country’s instant payment system, has become the backbone of inter-bank retail payments, processing more than 84 percent of transactions.
Key highlights of the digital payment transformation include:
Digital Payment System Integration:
• Five banks fully integrated into Favara
• Two additional banks in final testing stages
• 7.7 million transactions processed, totaling MVR 23.7 billion in its first full operational year
The report demonstrates a clear decline in traditional payment methods. Cheque usage has plummeted 17 percent in volume to 388,000, with total value dropping 11 percent to MVR 49.5 billion. Compared to 2020, cheque transactions have been reduced by more than half, underscoring the rapid digital adoption.
Card payment metrics show remarkable growth, with over 80 million transactions in 2024—a 26 percent year-on-year increase. Notably, credit card usage surged 33 percent, while prepaid cards experienced a nearly 50 percent domestic expansion. Contactless payments have become mainstream, with over 75 percent of debit card point-of-sale transactions utilizing near-field communication technology.
Cash withdrawal patterns also reflect changing consumer behaviors. While overall withdrawal volumes decreased by 9 percent, the total value remained stable at MVR 34.8 billion. International cash withdrawals experienced a more dramatic decline, dropping 45 percent in volume and 31 percent in value, indicating a growing preference for digital payment alternatives.
Electronic money services demonstrated modest account growth but increased transactional activity. The ecosystem now includes over 25,000 active e-money wallets, facilitating MVR 459 million in transactions during 2024. Bill payments and mobile airtime top-ups continue to dominate these digital wallet transactions.
The financial landscape also reveals ongoing challenges with remittance flows. Outward remittances reached USD 7.4 billion, with Bangladesh as the primary recipient, while inward remittances stood at USD 5.8 billion. Foreign workers contributed 92 percent of outward remittance value, highlighting potential economic vulnerabilities.
While the bulletin celebrates the Maldives’ rapid financial modernization, it simultaneously signals important structural considerations. The accelerating digital adoption presents both opportunities and challenges for the nation’s economic ecosystem, particularly regarding foreign exchange dynamics and financial system resilience.
