Mauritania Adopts New Electronic Payment Services Framework: Expanding Access to Digital Financial Services
The Mauritanian Parliament has adopted a long-awaited regulatory framework for electronic payment services, marking a significant milestone in the country’s journey towards inclusive finance. This new law is expected to expand access to digital financial services, making low-value transactional payment services more accessible to Mauritania’s population.
Challenges in Digital Financial Services
According to the 2018 Global Findex report, approximately 20 percent of adults over 15 years old had financial accounts, while mobile money accounts reached only four percent of adults. The gender gap in financial access is five percentage points, indicating that women are less likely to be served than men.
Policy Accelerator’s Role
The Policy Accelerator team played a crucial role in supporting the Central Bank of Mauritania (CBM) in adopting this new framework. Through close coordination with Mauritanian and international development partners, the CBM received support from the Policy Accelerator during a workshop on market stakeholders’ design of the National Financial Inclusion Strategy (NFIS) in July 2019.
Diagnostic Mission
The Policy Accelerator team conducted a diagnostic mission in December 2019 to understand the market context and regulatory objectives. They met with public and private sector representatives and development partners, presenting a report to the CBM that considered good practices in regulating digital financial services and provided insights on various regulatory options available to the CBM.
Contributions from Partners
The UNCDF analysis aligned with contributions from other CBM partners, including the World Bank and Alliance for Financial Inclusion (AFI). The Policy Accelerator team supported the CBM in reviewing the draft law on e-payments services, providing feedback on the temporary instruction on mobile payment services adopted during the COVID-19 pandemic.
Capacity-Building and Training
Capacity-building and training scholarships were provided to CBM officials, focusing on basic regulatory enablers of digital financial services, including:
- Non-bank licensing
- Tiered-KYC (Know Your Customer)
- Consumer protection
The Policy Accelerator advocated for an inclusive consultation process in developing the new regulatory framework, leading to a public consultation launched by the CBM.
Adoption and Impact
The adoption of the e-payments law in June 2021 marks a turning point in ensuring marginalized groups can access formal financial services in Mauritania. It will enable new actors to provide digital financial services, launch new products, and develop strategies for meeting the financial needs of two million people excluded from the formal financial sector.
By adopting this framework, Mauritania is one step closer to achieving inclusive finance and expanding access to digital financial services for all its citizens.