MMA to launch national QR code payment system

Maldives Monetary Authority (MMA) has decided to introduce a national QR code system, allowing customers to make payments without using bank cards.

MMA said that the service will be launched next year and be integrated into Favara, the country’s instant payment platform, which enables real-time transfers between banks.

According to the central bank, the move will make payments faster, easier and more secure.

MMA officials said the system will also connect with India’s Unified Payments Interface (UPI), enabling cross-border QR payments.

“All vendors will be able to use the QR code instead of card payments, and they will no longer have to pay the current 2.5 percent fee charged on card transactions,” an MMA media official said.

MMA said QR code payments will be available to local market stalls, retailers and other businesses, with customers able to pay instantly by scanning a code.

A company is being established in partnership with Maldivian banks to operate the service, and amendments to the Payment Systems Act are under way. MMA also plans to roll out open banking and other digital banking services as well.

QR-based payment systems are already among the fastest-growing payment methods globally. The sector is valued at around USD 10 billion and is projected to grow by 17 percent annually between 2023 and 2030.