Favara transactions reach MVR 48 billion

Transactions conducted through Favara have reached MVR 48 billion so far this year, Maldives Monetary Authority (MMA) governor Ahmed Munawar said today.

Speaking at the launch of key economic sector development programmes, Munawar said around 16 million transactions had been processed through the instant payment platform this year.

By comparison, Favara processed about eight million transactions worth MVR 23 billion last year, representing a twofold increase in both volume and value.

MMA introduced Favara in August 2023 to enable instant transfers between banks.

Munawar said the steady rise in usage demonstrated growing public acceptance of fast and simple digital payment tools. He added that the authority would continue to expand digital payment options in collaboration with Payment Maldives Pvt Ltd.

“With Payment Maldives, the financial sector is expected to grow by 15 percent. This is also a key target of the government,” he said.

The governor also highlighted a broader shift towards digital finance over the past six years. He said cheque based transactions have fallen sharply, from 40 percent of all transactions six years ago to just seven percent today.

Over the same period, account-to-account transfers have increased from 49 percent to 83 percent, a trend he said accelerated after the covid-19 pandemic and was further boosted by the introduction of Favara.