“Cash remains resilient and more competitive than digital payment methods due to its attributes such as anonymity and free of charge,” explained Mr. Bouazza, who was speaking at a panel on the theme “Developing the use of digital payments”, on the sidelines of Gitex Africa, which continues until May 31 in Marrakech.
Payment methods have undergone significant developments to become increasingly faster and more fluid. This is the case, in addition to online payment, mobile payment which was introduced in 2017, contactless payment which was accelerated by the pandemic crisis and instant transfer which was deployed in 2023, recalled the CEO of BAM, noting that despite these promising developments, the majority of Moroccans continue to favor cash in payments as highlighted by surveys and statistical data from Bank Al-Maghrib.
And to note that the modernization of payments has been favored by new technologies such as the QR code, NFC (Near-Field-Communication) technology, data tokenization and biometrics.
“Overall, the payment behaviors of a large part of the Moroccan population are changing, since digital payments, after having recorded an average annual growth of 13% in volume over the period 2016-2019, have accelerated in recent years to reach 19%, a level higher than that of the world average which is around 13%,” he said.
And to note that the other remarkable trend observed is the drop in the share of checks in payments which has gone, in 10 years, from 40% to 6%, in favor of transfers and bank cards whose shares have risen to 45% and 34% respectively.
To further develop digital payment, BAM has implemented a strategic vision that aims at three objectives: establishing more innovative and competitive payment systems, ensuring the right balance between innovation and regulation and integrating the national payment system into its regional environment.
Furthermore, Mr. Bouazza considered that we cannot talk about the future of finance without talking about the currencies of the future.
With this in mind, BAM, like other Central Banks, initiated studies in 2021 to examine what the issuance of a Central Bank Digital Currency (CBDC) could look like and how it could be managed, should the decision ever be taken to issue one.
“The first exploratory phase of this project allowed us to test the process of retail payments in digital currency and to evaluate certain functionalities of this system. The second phase aims to carry out a POC with the technical assistance of the World Bank and the IMF,” he concluded.
Placed under the High Patronage of His Majesty King Mohammed VI, Gitex Africa 2024 sees the participation of more than 1,500 exhibitors, representing more than 130 countries, and aims to be a hub promoting exchanges on the latest technological developments.
2024-09-21 05:44:25