Market Research Report
Payments Landscape in Morocco: Opportunities and Risks to 2022
|Published by||GlobalData||Product code||619896|
|Published||Content info||44 Pages
Delivery time: 1-2 business days
|Payments Landscape in Morocco: Opportunities and Risks to 2022|
|Published: March 5, 2019||Content info: 44 Pages||
Payment cards are at a nascent stage of development in Morocco, and accounted for only 1.8% of the total payment transaction value in 2018. The low uptake of payment cards is due to the country's high dependence on cash and the limited acceptance of payment cards at merchant locations. However, the government's financial inclusion program led to the percentage of Moroccan individuals aged 15 or above with a bank account increasing from 21.4% in 2014 to 30.4% in 2018.
Furthermore, as merchants have gradually started accepting payment cards, the share of payment cards in terms of transaction value and volume increased during the review period (2014-18e). The uptake of payment cards over the forecast period (2018e-22f) will further be accelerated by the availability of convenient and more affordable banking services, the advent of digital-only banks, the growing popularity of online shopping, and the gradual adoption and acceptance of contactless cards by individuals and retailers in the country.
Debit cards accounted for 99.5% of the transaction value in 2018. As part of its financial inclusion program, Bank Al-Maghrib (BAM), the central bank of Morocco, directed banks to provide services in rural areas, expand banking infrastructure, and introduce products and services for low-income groups. In line with this, banks are offering low-cost bank accounts. Attijariwafa bank, along with its subsidiary Wafacash, offers Hissab Bikhir, a banking service that provides users with access to basic banking products without a cheque book.
Credit and charge cards are not popular in Morocco, accounting for a 0.5% share of the total payment card value in 2018, mainly due to religious reasons, as Islam forbids interest, as well as due to limited awareness about the benefits of credit cards. To promote credit card adoption and usage, banks are targeting less risky segments such as high-income populations. They are offered value-added services such as reward points and discounts on the purchases of goods and services at partner retailers.
E-commerce has registered healthy growth, rising from MAD27.3bn ($2.85bn) in 2014 to MAD43.3bn ($4.53bn) in 2018. This growth can be mainly attributed to the rising number of online retailers, growing online and mobile penetration, and the development of secure online gateways. According to Centre Monetique Interbancaire (CMI), the volume and value of transactions for online purchases using domestic cards during the nine months ending September 2018 increased to 6.2 million transactions - up by 30.1% in comparison to 2017.
The report "Payments Landscape in Morocco: Opportunities and Risks to 2022", provides top-level market analysis, information and insights into the Moroccan cards and payments industry, including -
Companies Mentioned: Banque Populaire, BMCE Bank, Attijariwafa bank, Credit Agricole, CMI, Visa, Mastercard