The Maldives Monetary Authority (MMA) has clarified that the global online payment platform PayPal is not operating in the Maldives due to the company’s own business decision, and not because of any legal restrictions within the country.
The statement was issued in a letter from the Governor of MMA, Ahmed Munawar, in response to inquiries raised by North Galolhu MP Mohamed Ibrahim. The questions were linked to campaign pledges made by President Dr Mohamed Muizzu, particularly regarding improving access to international online payment systems.
The Parliament’s Public Accounts Committee discussed the matter during today’s meeting.
According to the MMA, the National Payment System Act and the Payment Services Regulation impose no legal obstacles for foreign payment service providers such as PayPal to operate in the Maldives. The current legal framework allows for such companies to enter the market once they obtain the required permits and regulatory approvals.
The letter further revealed that, in response to growing public interest, MMA had engaged in discussions with a regional branch of PayPal in 2020. However, by 2021, it became clear that PayPal had chosen not to extend its services to the Maldives, citing internal business considerations. The company based its decision on feasibility assessments and market research conducted to determine the viability of operating in the Maldivian market, MMA said.
MMA also noted that the Ministry of Economic Development and Trade are currently undertaking efforts to facilitate the introduction of PayPal services in the Maldives, demonstrating a broader government initiative to expand access to global digital payment platforms.
