The Maldives is witnessing a financial transformation as mobile banking, digital wallets, and fintech startups reshape the country’s financial landscape. With cashless transactions becoming increasingly common, digital payment solutions are improving financial access across the island nation’s scattered atolls.
By the end of 2023, over 80% of the country’s 410,000 bank account holders were registered for internet banking, with 96% actively managing their finances online. This shift reflects a growing preference for digital platforms over traditional banking methods.
Fintech and Digital Wallets Redefine Payments
Banks, telecom providers, and fintech startups are driving this shift with innovative digital payment solutions. The Bank of Maldives (BML) has seen rising demand for its mobile app, which facilitates everything from balance checks to QR code payments. Meanwhile, Ooredoo’s m-Faisaa and DhiraaguPay have gained popularity for offering seamless money transfers, bill payments, and top-ups without cash.
Fintech startups are also introducing advanced features such as bill splitting, budgeting tools, and instant transfers using the national instant payment system, Favara. These innovations are simplifying financial transactions while reducing costs for both businesses and individuals.
Strengthening Financial Integration
The Maldives Monetary Authority (MMA) has played a crucial role in promoting digital finance. The introduction of Favara in 2023 has enabled seamless transfers between banks and payment providers, using phone numbers or email addresses to simplify transactions.
The Maldives is also set to adopt India’s Unified Payments Interface (UPI) to expand international payment options. Additionally, the Finance Ministry’s Bandeyri Pay portal now integrates mobile wallets such as m-Faisaa, allowing residents to pay government fees and permits digitally.
Impact on Consumers and Businesses
For consumers, digital finance has brought greater convenience, particularly for residents in remote areas with limited access to bank branches. Mobile payment platforms have become essential for managing daily expenses, transferring money, and supporting small businesses.
For businesses, digital finance has improved cash flow and record-keeping, allowing easier access to credit through verified transaction histories. Many small enterprises have adopted mobile apps as cost-effective point-of-sale systems, expanding their reach without significant investment.
Challenges on the Digital Path
Despite these gains, digital literacy gaps — particularly among older citizens and residents of isolated islands — remain a concern. Rising cybersecurity threats have also prompted the MMA to promote awareness campaigns on safe online practices.
Network coverage issues in some remote areas continue to pose challenges for seamless digital transactions. To address this, the MMA has introduced regulatory frameworks and a sandbox environment for testing fintech innovations under supervision.
The Maldives’ shift towards digital finance presents clear opportunities for improved financial inclusion and economic growth. As fintech solutions expand and international payment systems like UPI gain traction, ensuring secure networks, public awareness, and continued investment in infrastructure will be crucial for sustaining this progress.
