International e-commerce does not end when a buyer pays a seller. It operates within a complex, interconnected system designed to ensure security, reliability and compliance; all of which come at a cost.
Financial institutions supporting cross-border transactions must invest heavily in infrastructure. This includes payment systems that function seamlessly across countries and time zones, foreign currency and liquidity management, cybersecurity protections against fraud, and compliance frameworks to meet international regulations such as anti-money laundering and sanctions rules.
Maintaining such systems is essential to ensuring trust and stability in global trade. As a result, the fees attached to international e-commerce transactions are not arbitrary, but they are distributed across multiple institutions involved in the payment chain. This makes zero-cost international transactions unfeasible.
Challenges for Maldives
These costs are more pronounced in smaller economies such as Maldives.
Data from Bank of Maldives (BML), the country’s largest e-commerce service provider, shows that around USD 25 million in e-commerce transactions are made each month using cards linked to Maldivian rufiyaa accounts. This requires BML to convert local currency into USD and transfer funds abroad.
Despite its small population, Maldives ranks among strong markets for major e-commerce platforms, with high transaction activity relative to its size. While this reflects growing consumer engagement, it also places pressure on the country’s financial system.
Every international transaction requires foreign currency. BML can supply dollars only to the extent that it can source or exchange them. At the same time, it must maintain financial stability and meet obligations to international card networks and partners.
Unlike larger economies with deep financial markets, Maldives which is heavily dependent on imports must carefully balance outbound payments with available foreign exchange reserves. This constraint contributes to additional costs and operational challenges.
Fee structure
BML applies different fees to transactions made using MVR cards:
- Up to 5 percent for essential services such as education and healthcare
- Up to 30 percent for certain high-volume commercial transactions on platforms such as Temu, particularly when personal MVR cards are used for business purposes
- Up to 10 percent for other goods and services
A system that carries a cost
International e-commerce relies on coordinated financial systems, regulations and risk management practices across jurisdictions. Each transaction involves multiple layers of processing and oversight.
These costs are not incidental; they are built into a system designed to keep global online trade secure and functional. Removing them entirely would undermine the infrastructure that enables e-commerce to operate at scale.
