Transforming Transactions: The Rise of Mobile Payments in Morocco

In recent years, Morocco has witnessed a significant transformation in its financial landscape, particularly with the emergence of innovative mobile payment solutions. Initiatives such as "M-Wallet," launched in 2018 by Bank Al-Maghrib (BAM) and the National Telecommunications Regulatory Agency (ANRT), and "CAM Pay," initiated by the international digital payment leader "Visa" in collaboration with Crédit Agricole du Maroc (CAM), are at the forefront of these solutions. They have enabled users to break free from the constraints of cash and explore faster and more convenient payment alternatives.

The benefits of mobile payment services are undeniable, allowing real-time transactions, bill payments, and instant and secure money transfers—all with just a smartphone and internet access. These user-friendly solutions are gradually making their mark among the most utilized digital payment methods in Morocco. According to BAM, the number of M-Wallets issued on a payment account or a bank account reached 3.1 million in the first half of 2021.

"Currently, we have almost 8 million electronic wallets in Morocco, but the usage remains far too low," says Rachid Saïhi, the director of the Interbank Monetary Center (CMI). In addition to convenience, mobile payment also offers several advantages in terms of transaction traceability, facilitating the fight against fraud and tax evasion. This mode of payment also promotes financial inclusion, allowing those without access to traditional banking services to actively participate in the economy.

Moreover, the adoption of mobile payment significantly reduces the circulation of cash, whose use incurs a significant cost for the economy. Between the manufacturing of coins and banknotes, the design, research, and development of security features, logistics, and distribution, the cost exceeds 10 billion dirhams annually, approximately 0.8% of the GDP, according to BAM. The operational management of cash transactions can also be costly for businesses, leading them to increasingly turn to electronic solutions to optimize their operations.

Despite the multiple advantages offered by mobile payment, cash remains deeply rooted in Moroccan culture, symbolizing trust and security for many. The transition from cash to mobile payment still raises questions about the security and confidentiality of personal data in the face of cybercrime. This "cultural resistance" is not only explained by a certain distrust and lack of confidence in new technologies but also by the tangible nature of cash payments and its role in maintaining social ties. According to Mr. Saïhi, "mobile payment users must be reassured about the balance of their electronic wallet and the ability to convert it into a purchase or cash anytime and anywhere in Morocco, while also being educated about transaction security."

In Morocco, several measures have been taken to encourage the adoption of mobile payment. Fiscal incentives and awareness campaigns have been launched, especially as part of the "media strategy" in December 2022, in collaboration with the Digital Development Agency and the mobile payment ecosystem in Morocco. These initiatives aim to reduce the proportion of cash in the national economy to the lowest possible level, with the goal of integrating all economic actors, accelerating exchanges, and improving the overall performance of the Moroccan economy.