Since the Cash Center in Morocco approved e-payments in 2019, digital transactions have rapidly gained traction, with one in three payments now made electronically. This marks a significant leap in Morocco’s financial modernization efforts, contributing to a decline in traditional payment methods.
According to Rachid Saihi, the director of the institution, the majority of Moroccan citizens who opt for electronic bill payments do not revert to traditional methods. This shift demonstrates the success of the reforms implemented in recent years.
In the past, banks in Morocco lacked the infrastructure to offer services through automated teller machines (ATMs) of other banks, leading customers to explore alternative payment options. However, significant investment in infrastructure upgrades has enabled the widespread adoption of digital payments, particularly on smartphones.
Saihi noted that the transition represents a “new catalyst” for Morocco’s digital consumer landscape. Thanks to this digital transformation, most bills, including vehicle taxes, water and electricity bills, and school fees, can now be paid electronically.
Currently, there are approximately 20 companies offering digital wallets in Morocco, with 12 of them being government-backed. This aligns with the country’s broader digital transformation goals.
As part of its push towards full digital integration, Morocco introduced the ‘Digital Morocco 2030’ plan, a collaborative initiative involving various government entities, including the Ministry of Economy and Finance, and Bank Al-Maghrib. This plan aims to streamline administrative procedures, making it easier for citizens to make payments electronically through a unified digital platform.
The governor of Bank Al-Maghrib, Abdellatif Jouahri, highlighted the importance of promoting digital commerce to reduce the reliance on physical cash. Morocco’s cash circulation is one of the highest globally, amounting to 30% of the GDP or approximately 157 billion dollars. This has led to a focus on digital payment channels to curb cash dependency.
Recent data from the Central Bank revealed notable differences between bank customers and payment service users. Bank customers primarily engage in transfers (56%) and ATM withdrawals (28%), with bill payments making up only 15%. Conversely, payment company customers prioritize bill payments (70%), with transfers accounting for 27%.
