Fifty million transactions totaling $3 billion are projected to take place through digital mobile wallets in Fiji this year, as reported by Reserve Bank of Fiji (RBF) Governor Ariff Ali. The increase in payments via QR codes, bank-to-wallet, and wallet-to-bank transfers marks a significant trend, with mobile network inward remittances now accounting for nearly half of the $1.3 billion in annual inflows.
Governor Ali shared these insights at a workshop held in Nadi last week, which gathered financial stakeholders and central bank governors from across the Pacific to discuss the importance of fast payment systems in the realm of digital finance. The remarkable growth in digital financial transactions in Fiji, as indicated by Mr. Ali, can be attributed to the country’s investment in payment system reforms.
He traced the evolution of electronic transactions back to the late 1990s, highlighting advancements like automated teller machines (ATMs), EFTPOS, and internet banking that paved the way for digital transformation. The introduction of large-value Real-Time Gross Settlement systems, along with mobile and digital money, further enhanced the financial landscape.
Mr. Ali noted the unforeseen benefits of the COVID-19 pandemic, which prompted a rapid shift toward digital and contactless payment solutions. He emphasized that the pandemic accelerated reforms that may have otherwise taken years to implement, creating a unique opportunity for progress in Fiji’s payment systems.
With a solid legal framework established by the National Payment System Act of 2021 and supplementary Regulations of 2022, supported by the World Bank and the International Finance Corporation, the RBF undertook an ambitious plan to modernize its payments infrastructure. This included the phased overhaul of the Real-Time Gross Settlement system and the introduction of new tools such as Electronic Funds Transfers and Instant Funds Transfers for both bulk and retail payments.
As a result of these initiatives, the integration of mobile wallets with banking platforms has fostered greater interoperability among Wallet-to-Bank, Bank-to-Wallet, and Wallet-to-Wallet transactions. Mr. Ali reported that internet banking has experienced significant growth, with both transaction volume and value increasing nearly tenfold since 2015, particularly in the last five years.
Mobile wallets, initially introduced in 2010, have seen a dramatic rise in person-to-person transfers since 2020, culminating in estimates of 50 million transactions worth $3 billion this year. The use of QR codes has also skyrocketed, with the value of personal wallets for businesses using QR codes expected to rise from $86.2 million in 2021 to $444.4 million in 2024, accompanied by a nearly sixfold increase in transaction numbers.
To further bolster its digital payment success, the RBF plans to launch the National Digital Identity project. Governor Ali remarked that successful payment reforms are significantly enhanced by a trusted digital identity system, tiered know-your-customer protocols, and straightforward onboarding processes. The draft National ID Bill is expected to be presented to Parliament early next year, with strong collaboration from 19 government ministries.
Fiji’s journey toward a more digital and efficient payment landscape not only reflects the adaptation to modern financial needs but also exemplifies a proactive approach to embracing the future of finance. This ongoing evolution stands as a testament to the resilience and innovative spirit of the Fijian economy.
Leave a comment