Page 46 - SAMENA Trends - November 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Mobile Payment and Financial Inclusion in Morocco

For the last 30 years, Morocco has to the unbanked population. By relying gradually be granted on mobile financial
used financial inclusion, among other on mobile phones, which have a very high accounts. ax exemptions for mobile
levers, to foster the economic and social penetration in Morocco, mobile financial payment transactions over a five-year
development of women, young people, low services are accessible to the unbanked period for small shops have also been
income families, the rural population and population and have the potential to introduced. Fast-moving consumer goods
micro-enterprises. This started in the mid- accelerate financial inclusion. Moreover, distribution companies have also been
nineties with the launch of microcredit paying by mobile phone helps reduce prompted to accept mobile payments from
programs, giving those without bank cash circulation dematerializing money retail shops; while payment institutions
accounts access to credit. This proved deposits and collection. The Moroccan have also been asked to develop their
to be a great success with 13 players mobile payment ecosystem now boasts network of access points with the ambition
currently offering microfinance services more than 20 market players (payment of delivering 35,000 service points within
to around a million active customers institutions) that have implemented five years. A marketing campaign was
involving outstanding credit of around payment solutions enabling cash in also launched in early 2021 to promote
€600m on hundreds of thousands of new and cash out, point of sale payment, the use of mobile payment services by the
loans each year. A National Strategy for money transfer and bill payments. These Economic Interest Group comprising all
Financial Inclusion was launched in 2019, technical solutions are interoperable mobile payment ecosystem players There
aimed at further improving access to and provide real time processing with a are currently 1.5 million mobile payment
financial services and raising the financial switch enabling transactions between services customers, that is people who
account penetration rate from 34 percent different players’ platforms. Meanwhile the have opened a mobile payment account.
to 47 percent of the adult population within Moroccan authorities have implemented Within five years, the number of active
five years. This strategy will capitalize on a series of measures to promote mobile mobile financial accounts is projected
the success of microfinance services and payment usage. These include digital to reach 5 million, the deposits on these
further develop them as well as accelerate opening procedures for accounts capped accounts should reach €6bn and financial
the development of mobile financial at €500 to improve and facilitate user flows are expected to be approximately
services, particularly mobile payment access and Government social and €40bn. Among the services currently
services. The design of the mobile payment welfare benefits delivered using the mobile offered are utility bill payments that
ecosystem was launched in 2016 with the payment system. Subsidies to around adds to money transfer and point of
aim of increasing financial inclusion as well 1.2 million households that encourage sale transactions, all delivered through
as decreasing cash circulation, by relying the school attendance of children from customers’ mobile phones. These services
on alternative service networks adapted underprivileged areas, for example, should are accessible through all sorts of mobile
phones, even basic and feature phones
and not limited to Smartphones. Over the
next months and years additional financial
services are expected to be offered through
mobile phones by payment institutions.
In conclusion, the deployment of Mobile
Financial Services with a heavy use of
digital channels is expected to account
for a large part of the financial inclusion
increase and cash usage reduction in
Morocco, and will help pave the way for
a full-fledged social inclusion shifting a
large chunk of the informal economy to the
formal one.

46 NOVEMBER 2020