Moroccans’ dependence on cash weighs heavily on banks
Moroccans continue to favor cash transactions, increasing the country’s economic losses despite multiple initiatives to promote digital payments, according to a report from Bank Al-Maghrib. The value of cash transactions reached 412.8 billion dirhams in 2023, marking an increase of 11% compared to the previous year. This situation arouses the concern of Abdelatif Jouahri, Governor of Bank Al-Maghrib, who warns of the economic risks linked to this dependence and the need for urgent measures.
Digital payments, despite their availability, remain marginal, with only 2% of transactions carried out via e-wallets, as the same report reveals. Although 20 mobile payment service providers now exist in Morocco, users limit their use to bill payments, with few adopting these means for purchases.
The absence of bank accounts for around 46% of Moroccan adults, compared to a banking rate of 54%, hampers financial inclusion and the expansion of digital payments. Financial engineering expert Mohammed Moussaoui believes that cash dependence stems from low trust in digital systems and an ingrained habit of using cash.
In fact, Moroccan banks and payment institutions mainly focus on transfer and withdrawal services, to the detriment of mobile transactions. According to Mohsen Maaroufi, financial advisor, this strategy limits the growth of digital payment and focuses the use of electronic wallets on bill payments.
To accelerate the shift to electronic payments, financial incentives, such as discounts on e-wallet purchases, may be necessary. Experts call for public-private collaboration to build trust in digital systems and expand options to unbanked users.
Copy URL URL Copy