Fiji is actively transitioning towards a cashless economy, a move that has sparked concerns among businesses, particularly smaller enterprises. Many fear that rising transaction fees associated with digital payments could negatively impact their profitability, especially given the already narrow margins they operate on. However, Permanent Secretary for Trade, Shaheen Ali, remains optimistic about the potential benefits of this initiative. He argues that as digital transactions increase, the associated costs will eventually decrease, thereby alleviating financial pressures linked to electronic payments.
Ali highlighted that adopting digital transaction methods may prove to be more cost-effective than traditional manual processes. His plans involve partnering with mobile card providers and banking institutions to enhance the region’s digital trade infrastructure. This initiative aligns with Fiji’s National E-commerce Strategy for 2025-2029, aimed at boosting the global visibility of Fijian products and empowering local businesses.
Supporting this view, Edward Bernald, CEO of the Fiji Commerce and Employers Federation, emphasized the necessity of addressing the hurdles that smaller businesses encounter in the digital economy. He believes that the national strategies currently being enacted will enable entrepreneurs to grow their operations and seize opportunities within the expanding global digital marketplace.
The move towards a cashless society also dovetails with broader efforts to improve digital literacy and enhance e-commerce infrastructure—two critical elements for fostering an environment in which local businesses can flourish. While challenges remain, the government is dedicated to overcoming these obstacles, viewing the shift towards a digital economy as a pathway to innovation and growth.
In essence, Fiji’s journey towards a cashless society offers significant promise for its economic landscape. With collaborative efforts from the government and private sector to tackle existing challenges, this transition could lead to a more dynamic business environment that benefits both local entrepreneurs and consumers. The article encapsulates the challenges and optimistic outlook surrounding Fiji’s shift to a cashless future, underscoring the importance of resilience and adaptability within the business ecosystem. The government’s proactive initiatives in digital transformation are crucial for sustaining economic growth in an increasingly digital world.
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