Shaping the future of payments in Mauritius

1. How has mobile payment transformed the financial habits of Mauritians in recent years, and what place does it hold today in everyday transactions (purchases, bills, money transfers)?

Mauritius has a population of around 1.3 million, and mobile banking and mobile payment subscribers have reached more than 2.2 million, according to the latest Bank of Mauritius figures. This suggests that many Mauritians are already using more than one active digital banking or payment application. For mobile banking and mobile payments, the country recorded over 12 million transactions in April 2026 alone. (Bank of Mauritius Monthly Statistical Bulletin, May 2026, Table 33: Mobile Banking and Mobile Payments.)

Mobile payment has changed how Mauritians manage daily money movement. The shift is not only about paying from a phone. It is about customers expecting payments to be faster, safer, easier to track and available when they need them.

This is visible in everyday life. Customers want to pay merchants, transfer money, settle bills, shop online and manage spending with less effort. For businesses, digital payments also create a clearer way to collect money, track transactions and reduce manual handling.

At Absa, this is central to our Private and Personal Banking digital strategy. We are building digital experiences around the way people live, not around the way banks are structured. The objective is to make everyday banking easier, safer and more convenient, whether the customer is paying a merchant, sending money, shopping online or managing cross-border spend.

This is why our payments ecosystem includes solutions such as QR payments, Absa Pay, the Multi-Currency Virtual Card, Google Pay and Spark by Absa. Together, these solutions are designed to reduce effort in everyday banking and give customers safer, more convenient ways to transact.

2. Is mobile payment mainly used today for everyday spending, such as small purchases, or are Mauritian consumers also adopting it for larger transactions?

Most customers start with everyday payments. A quick merchant payment, a person-to-person transfer, an online purchase or a small bill payment helps them build trust in the experience.

Mobile payments are still mainly used for high-frequency, lower-value spending. For larger-value transactions, many customers continue to use more established payment methods, such as cheques, internet banking and electronic bank transfers. These channels remain important, especially where the transaction value is higher or where customers require more formal payment records.

That said, the scale of mobile banking and mobile payment activity in Mauritius is already significant. According to the Bank of Mauritius, the daily value of mobile banking and mobile payments is around Rs 1 billion, with an average of around 400,000 transactions per day. Compared to a year ago, this represents an increase of around 25% in value, showing that mobile payment is now a meaningful part of how individuals transact.

As confidence grows, digital usage will naturally expand into higher-value needs. These may include travel, subscriptions, international online purchases and planned expenses. The customer expectation remains the same: the payment must be simple, safe and within their control.

3. Why, in your view, does cash remain so important in Mauritius despite the development of mobile payment solutions and digital alternatives?

Cash remains important because it is familiar, immediate and widely accepted. For some customers, it also feels easier to manage. For some small businesses, the concern is often linked to cost, readiness or the effort needed to change existing habits.

A few years ago, many retailers preferred cash over cards because of the fees associated with card payments. With the development of the QR payment rail, we are seeing increasing adoption of MauCAS QR by retailers to accept payments. This suggests that the use of cash as a form of payment is gradually reducing, even if it remains present in everyday transactions.

Mobile payments and other digital alternatives will continue to expand. If we look at this simply, as an economy grows, the amount of cash in circulation can also be expected to grow. In Mauritius, physical cash in circulation has remained significant over the past few years. However, to assess the true scale of cash-driven transactions, we also need to consider the velocity of circulation of that cash. Compared to 2023, available indicators suggest that the velocity of circulation has declined for both narrow and broad money. If the stock of cash remains relatively stable while its velocity declines, it can lead to a structural shift from cash toward cashless forms of payment.

The objective is not to suggest that cash will disappear overnight. A more realistic view is that Mauritius is moving toward greater choice. Customers and merchants will adopt digital payments when they see clear value in doing so.

That value must be practical. Digital payments should help people save time, transact safely and keep better visibility over their money. For merchants, they should make collections easier and give more control over daily sales, while also opening the door to other future benefits they may obtain from their banks.

4. Is there genuine competition between telecom operators and banks in the field of mobile payment, or is the market gradually moving toward complementary offerings?

There is genuine competition, and this competition is helping to drive continuous innovation in the country’s payment landscape. Our latest consumer app, Spark by Absa, is one example of this. It is a lifestyle app that includes payment features and is open to every individual in the country. Even if a person does not have an account with Absa, they can still download and use the app.

Customers are not focused on whether a payment solution is provided by a bank, a telecom operator or a fintech. They care about whether it works, whether it is accepted, whether it is safe and whether it saves them time.

However, the future of payments will depend more on stronger collaboration than competition alone. While people will continue to look for faster and more convenient ways to pay, they will still need broader banking services, including lending, savings and investment solutions. Banks bring trust, risk management, cybersecurity, regulatory discipline and customer protection.

Telecom operators, on the other hand, bring reach, technology and different customer touchpoints. They often have a wide customer base and strong data capabilities, which can help create better insights, improve access and support more inclusive financial services when used responsibly and within the right regulatory framework.

The opportunity is to bring these strengths together so that the wider ecosystem becomes stronger. This can support better customer experiences, improve payment acceptance and, over time, contribute to more financial inclusion.

At Absa, we see our role as helping to connect the payment experience around the customer. That means connecting customers, merchants and partners through solutions that are practical, secure and easy to use. Over time, banking will move further toward platform-based experiences, where customers can pay, manage money, access offers, support businesses and take part in the digital economy through more connected journeys.

5. What are the main technologies currently supporting the mobile payment ecosystem in Mauritius, and how do they contribute to its development?

If we start with payments, several technologies are helping to make the experience more practical, secure and convenient. Different providers may use different technologies, depending on the solution they offer.

For example, tokenisation helps protect customers by replacing the real card number with a unique digital identifier during a transaction. Google Pay allows eligible Absa cardholders to add their card to Google Wallet and pay with a compatible Android or Wear OS device in stores, online or in apps where Google Pay is accepted.

For merchants, mobile-first tools are just as important. Solutions such as Spark Business help businesses accept payments and manage collections from a mobile-first platform, without always depending on traditional point-of-sale infrastructure.

When we look at the wider mobile payments ecosystem, it relies heavily on the national payment system infrastructure. MauCAS, the Mauritius Central Automated Switch, is a foundational pillar of this infrastructure for 24/7 retail payments. It connects local banks and mobile payment applications into a single network, allowing money transfers to take place around the clock, subject to applicable limits.

The real value of these technologies is what they enable for customers and businesses: quicker payments, stronger protection, better visibility and more confidence in digital channels.

6. Is the current regulatory framework flexible enough to support the emergence of new technologies and new business models in mobile payments?

Mauritius has made remarkable progress in creating a stronger base for digital payments. The market is becoming more open, more interoperable and more ready for innovation.

If we look at the regulatory framework, it has shifted from a purely bank-centric model to a more inclusive structure that also accommodates technology firms, fintechs and telecom operators. It has moved away from the idea that only a traditional banking institution can offer payment solutions. This has opened the door to new players and new models in the payments ecosystem.

There is also a collaborative approach between the regulator and market participants, including both banks and non-banks. This is important because innovation in payments cannot happen in isolation. It requires dialogue, clarity and a shared commitment to customer protection.

That said, there is still scope for improvement. Some players may face a dual regulatory burden, and overlapping requirements can sometimes slow down approvals. In addition, not all banks may yet see fintechs and telecom operators as partners in the payment ecosystem.

For all stakeholders, the value of regulation is trust, and that trust must exist. Customers need to know that innovation is happening in a safe and responsible environment. For banks and other players, clear rules help innovation move forward with the right level of discipline.

As payments evolve, areas such as digital identity, data protection, fraud prevention, open banking and cross-border activity will require continued dialogue between regulators and industry players.

At Absa, our view is that innovation must be responsible, and we believe in partnerships. New solutions should improve the customer experience, support inclusion and help democratise the payment landscape, but not at the expense of safety, transparency or confidence.

7. Does security still hinder greater adoption of mobile payment in Mauritius? What are the main concerns expressed by users?

Security remains one of the most important drivers of adoption. Customers will only use digital payments regularly if they feel safe, protected and in control.

So far, security has not stopped the growth of mobile payments in Mauritius. However, we are seeing increasing concerns around fraud attempts that happen outside the payment platform itself. These include fake calls, fake messages, phishing links and requests for one-time passwords or personal banking information.

This is a risk that must be managed carefully. If not addressed, it can affect customer confidence and slow down the wider payment transformation. It is not only a bank or telecom operator issue. It is a national issue that requires collaboration between financial institutions, telecom operators, regulators, law enforcement and other relevant authorities.

Continuous education of citizens is also essential. Many fraud attempts reach customers through communication channels such as phone calls, SMS, messaging apps or emails. These entry points need to be part of the wider conversation on digital safety.

At Absa, security is built into the way our digital channels are designed and managed. This includes controls, monitoring, identity checks, tokenisation and device authentication. We also continue to educate customers on safe digital behaviour, including never sharing a PIN, password, one-time password or sensitive banking details.

Customers should not have to choose between convenience and safety. A strong digital payment experience must offer both. Trust is built when customers can transact with less friction and with peace of mind.

8. Can you present your mobile payment solution, its main features, and how it works? To what extent does it meet your customers' needs in terms of speed, simplicity, and security? Which customer profiles use it the most?

With Spark by Absa, we offer a payment and lifestyle app that is open to everyone, both Absa customers and non-customers. A person does not need to have an Absa account to use Spark. The app allows users to send money using a mobile number, receive payments through a personal QR code, pay merchants, discover offers, and book experiences such as trips, hotels or event tickets.

With Google Pay, eligible Absa cardholders can add their card to Google Wallet and pay using a compatible Android or Wear OS device, in stores, online or within apps where Google Pay is accepted.

Both solutions respond directly to what customers expect from digital payments today: speed, simplicity and security. Spark by Absa offers a fully digital sign-up journey, including identity verification through facial recognition. Google Pay uses tokenisation, which helps protect card details, as well as device-based authentication such as fingerprint, facial recognition or passcode, depending on the customer’s device settings.

The user profile is deliberately broad. It includes young, connected professionals who prefer contactless payments, families managing everyday transactions, merchants and SMEs using Spark Business to collect sales, and Absa customers who want more choice in how they pay.

9. Can you provide recent statistics on the use of your app (active users, transaction volume, adoption trends)? What are the usage trends, peak activity periods, or most frequent transaction types?

Google Pay and Spark by Absa were recently launched in Mauritius, so it is too early to share meaningful usage statistics. We want to avoid overstating early numbers. Launch figures may show initial interest, but they do not always reflect long-term behaviour. What matters more is whether customers continue using the solution because it solves a real need.

For Absa, success is not only about downloads or transaction volumes. The stronger test is value. Are customers using it because it makes their day easier? Are merchants using it because it helps them collect and manage payments better? Are we helping more people and businesses participate in the digital economy?

Our aim is to democratise payments by making digital payment tools more accessible to Mauritians, including those who do not have an Absa account. With Spark by Absa, payment is an important part of the experience, but it is not the only part. The broader ambition is to connect people, merchants and partners through a lifestyle app that brings more convenience, more choice and more value into everyday transactions.

10. What sets your mobile payment solution apart from other systems available on the market?

Spark by Absa is different because it is designed as a broader ecosystem, not only as a payment wallet. It is open to everyone, including people who are not Absa customers. A person can use Spark by Absa even if they do not bank with us.

This matters because the value is not limited to our existing client base. It allows more Mauritians to access a digital payment and lifestyle experience.

Spark by Absa also brings together payments, offers and selected lifestyle services. Customers can pay, transfer money, receive payments, access merchant offers and discover experiences through the app.

The merchant side is equally important. Through Spark Business, SMEs can accept payments and manage collections in a more practical way. This supports one of the key drivers of digital payment adoption: merchant readiness. If businesses can accept digital payments easily, customers are more likely to use them regularly.

This is where our strategy becomes two-sided. Customers get more convenience and choice. Businesses get tools that help them serve customers better and operate with more clarity.