Maldives Takes Major Step Towards Fintech Development with Launch of Instant Payment System
The Maldives Monetary Authority (MMA) has taken a significant step towards modernizing its financial sector by launching the country’s instant payment system, Favara, in collaboration with global fintech leader Tietoevry Banking. This marks a major leap towards enhancing financial inclusion and digitalization in the country.
Enhancing Financial Inclusion and Digitalization
The MMA’s vision is to create a modern and efficient payment system that aligns with the country’s economic growth and digitalization goals. Favara, designed and developed by Tietoevry Banking, provides a fast, reliable, and secure way for citizens, residents, and businesses to conduct financial transactions.
Key Features of Favara
- Smart Addressing System (Favara ID): Simplifies payments by providing users with unique and easy-to-remember identifiers such as mobile numbers, email addresses, or national ID numbers.
- R2P: A secure and compliant system that ensures seamless and standardized transactions across borders and financial networks.
Secure and Compliant
Both the R2P and Smart Addressing systems are secure and compliant with international standards such as ISO 20022, ensuring smooth and standardized transactions across borders and financial networks.
Governor’s Commendation
MMA Governor Ali Hashim hailed the launch of Favara as a significant step towards creating an equitable landscape that promotes healthy competition and empowers all market participants to deliver exceptional payment services. He praised Tietoevry Banking for its partnership in developing the infrastructure and systems necessary to implement Favara.
Tietoevry Banking’s Commendation
Valdis Janovs, Head of Instant, Retail Payments, and Cards at Tietoevry Banking, commended the MMA’s comprehensive strategy, which focuses on infrastructure and delivering value-added services to all system participants. He noted that the project’s success was due in part to the care taken by the MMA during the rollout, which prioritized local competence and technical performance.
Future Plans
The launch of Favara is expected to pave the way for a second phase of development, including new Open Banking regulations in the Maldives. The next phase will introduce:
- White-label mobile application: Catering to consumer and business needs
- MMA Aggregation Services: Providing access to accounts and payment initiation
Anticipated Impact
The MMA and Tietoevry Banking anticipate that Favara will revolutionize the way money is exchanged, making it faster, more convenient, and globally accessible. Over the next three to five years, they expect to develop a comprehensive centralized Instant Payment ecosystem that will accelerate electronic payments and digital banking in the Maldives.