Fiji is moving towards a cashless economy, but many businesses have expressed concerns regarding the shift. They fear that increased transaction fees could hurt their profitability, particularly for smaller enterprises operating on tight margins. Despite this hesitance, Permanent Secretary for Trade, Shaheen Ali, is optimistic about the cashless initiative. He believes that as the volume of digital transactions rises, costs will decrease, thereby alleviating some of the financial burdens associated with electronic payments.
Ali stresses that adopting electronic business methods could offer a more economical approach to transactions than current manual processes. He aims to collaborate with mobile card providers and banks to bolster digital trade in the region. This aligns with Fiji’s National E-commerce Strategy for 2025-2029, which aims to enhance the visibility of Fijian products globally and empower local businesses.
Edward Bernald, the CEO of the Fiji Commerce and Employers Federation, underscored the importance of addressing challenges faced by smaller businesses in the digital marketplace. He believes that the national strategies being implemented will equip entrepreneurs to scale their operations and tap into the expanding global digital economy.
This pursuit of a cashless society dovetails with broader efforts to enhance digital literacy and improve infrastructure for e-commerce, critical components for fostering an environment where local businesses can thrive. The government recognizes that while challenges remain, the continued push towards a digital economy opens up opportunities for innovation and growth.
Overall, the transition towards a cashless society holds promise for Fiji’s economic landscape, particularly as the government and private sector work together to address the existing barriers. Embracing this change could lead to a dynamically evolving business environment that supports both local entrepreneurs and consumers.
This article highlights both the challenges and positive outlook for Fiji’s step into a cashless future, encouraging a resilient and adaptable business ecosystem. The government’s initiatives represent a proactive approach to engaging with digital transformation, which is essential for sustaining economic growth in an increasingly digital world.
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