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Rabat – Morocco’s central bank, Bank Al-Maghrib (BAM), has announced a new regulation that caps electronic transaction fees for local payments made via bank cards at 0.65% of the transaction value.
In an official statement, the central bank explained that this fee structure pertains to the commissions charged by banks and payment institutions to merchants for card payment processing.
It added that merchants are prohibited from passing these fees onto their customers, meaning the costs of goods and services will remain unaffected when paid for using bank cards.
The bank said that this regulatory measure falls within its broader mandate to ensure the security of payment systems and protect customers of credit institutions. It added that by establishing a clear limit on transaction fees, the central bank aims to foster the growth of electronic payment methods in Morocco.
Overall, the move aims to standardize costs associated with electronic payment systems and ensure fair practices in the financial sector.
Despite efforts towards modernizing the payment landscape, Morocco still remains heavily reliant on cash transactions. A significant portion of the population continues to prefer cash for everyday purchases, which presents challenges in transitioning to electronic payment methods.
A study published by the British website Merchant Machine in 2022 found that Morocco is the world’s most cash-reliant country in the world, with 74% of transactions in the North African country being cash-based.
The report found that 71% of Morocco’s population do not own a bank account and only 0.2% have a credit card, “indicating that the majority of Moroccan citizens are still relying on physical cash for their transactions.”
The report said Moroccans’ preference for cash-based payments is “likely not due to any internet issues,” since 84% of the population has access to the internet.
