Maldives Mobile Phone Banking Project

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The objective of the Mobile Phone Banking Project in the Maldives is to significantly increase the use of banking system transactions for effecting or receiving payments for labor, goods and services nationwide through the implementation of a national inter-operable payments system that facilitates access to financial services and allows users access to their bank account using any mobile phone operator and cashing through any banking agent. The project has two main components: (i) create, establish and operationalize the Maldives Interoperable Payments System (MIPS): the payment system is a single currency system operating in Maldivian Rufiyaas (MFW) that will be capable of interoperating with all local mobile network operators and integrating all the banks. The system will offer a set of mobile telephone based accounts that include: (a) mobile payment accounts, (b) mobile agent accounts, (c) mobile card accounts, (d) mobile loyalty, (e) mobile airtime reseller accounts, and; (f) a customized account type - for introduction of new banking/payment products in future. (ii) Building an enabling environment and the capacity to support successful mobile phone banking systems - (US$ 1.00 Million) capacity must be built in several ways to ensure that the system is properly regulated, works for clients and is well managed. It will be necessary to develop and implement regulations to cover all aspects of the system as well as build the capacity of regulators to supervise the system. To help ensure that people and businesses understand the benefits of the system and adopt and trust it, a promotion/ public education campaign will be conducted. Finally, a mobile phone banking unit will be established under the Maldives Monetary Authority (MMA) that has the capability to implement MIPS.