Fiji’s Cash Holds Ground as Digital Payments Surge

Cash continues to hold a significant place in Fiji’s economy despite the rise of digital payment systems like M-PAiSA and QR Codes. A recent survey conducted by the Reserve Bank of Fiji (RBF) revealed that 62 percent of Fijians prefer using cash for their everyday expenses. This preference was highlighted by RBF Governor Ariff Ali during the recent Pacific Fast Payments Systems Workshop, where regional and international financial stakeholders gathered to discuss trends in payment systems.

The event also marked the unveiling of Fiji’s new 2025 Polymer note series, which presented an ideal opportunity for Governor Ali to address the enduring popularity of cash in the country. He acknowledged that while there has been an impressive growth in Internet banking and mobile wallets, cash usage still plays a critical role in the economy, representing nearly eight percent of Fiji’s GDP.

Governor Ali explained the rationale behind the RBF’s investment in new banknotes alongside advancements in the national payments system. Key reasons include the necessity to upgrade security features to combat counterfeiting and the durability advantages of the new polymer notes, which are designed to withstand daily handling, thus lowering costs for the bank due to reduced replacement rates.

As the global trend shifts towards digital payments, fast payment systems are integral to this evolution. Governor Ali emphasized the importance of efficient payment systems as essential for economic health, describing them as the “bloodstream” of the economy. He noted that when payments flow smoothly, businesses prosper and consumer confidence flourishes, while disruptions can lead to significant challenges.

Overall, while digital payment methods are gaining traction, the strong preference for cash among Fijians highlights a unique aspect of Fiji’s economic landscape, indicating that the transition to a cashless society may take time. This duality presents opportunities for both cash and digital systems to coexist and cater to the diverse needs of Fijian consumers.