Boosting Morocco's digital payments to increase financial inclusion and reduce the use of cash
Despite significant progress, there is limited use of electronic payments in Morocco, compounded by persistent dependence on cash and the lack of a developed digital payment ecosystem.
This challenge is worsened due to limited financial inclusion, particularly affecting vulnerable populations, women, young people, and rural areas, as well as the significant weight of the informal economy, accounting for almost a third of GDP. These obstacles hinder the transition to an inclusive, modern digital economy, while limiting the efficiency of financial transactions and the formalisation of the economy.
This project aims at fostering robust and sustainable digital financial inclusion by supporting the development of an electronic payment acceptance network for merchants.
The project aims at achieving two specific objectives:
• developing electronic payments; and
• encouraging their adoption to reduce the circulation of cash in Morocco.
The project seeks to financially include excluded segments of the population, especially recipients of government aid, by creating cases for the use of electronic funds to avoid mass cash withdrawals. At the same time, the project aims at establishing a larger and more profitable electronic payment ecosystem for market players, while democratising these payments through communication and financial education initiatives.
The project's success hinges on key factors: merchants’ commitment, stakeholder collaboration and the target populations’ buy-in.
Expected outcomes include raising awareness of the initiative and benefitting:
• installation of 18,000 Electronic Payment Terminals
• inclusion of 20,000 merchants, with a considerable proportion in rural areas.
The project aims at promoting financial transparency and reducing the informal economy by reducing the circulation of cash. The inclusion of marginalised populations in the digital ecosystem, in particular welfare recipients, helps to stimulate local consumption and trade. The transition to digital payments improves productivity and reduces planning costs, while enhancing transaction security and limiting the risk of fraud.
Lastly, the social impact is significant. Such an initiative helps to reduce economic inequalities, especially in rural areas by integrating excluded populations into the modern financial system.
By tackling these structural challenges, the intervention is helping to modernize Morocco's financial ecosystem, promote financial inclusion and reduce dependence on cash, thus creating a solid foundation for a sustainable digital economy.
