The Maldives Monetary Authority (MMA) has announced plans to establish a new company named Payment Maldives to further expand and enhance the services provided through the country's payment systems.
In a letter addressed to the Parliament’s Public Finance Committee, responding to an inquiry by Galolhu North MP Mohamed Ibrahim on the need to facilitate online payment systems for local businesses, the MMA said it is actively pursuing various initiatives to modernise and strengthen the nation’s financial infrastructure.
Among these initiatives is the creation of Payment Maldives, a company that will oversee the operation of retail payment systems such as Favara, which was introduced by the central bank in 2023.
According to the MMA, the new company will operate independently of the authority, with its own separate management and operational structure.
The letter also revealed that formal discussions have commenced to link Favara with India’s Unified Payments Interface (UPI), a move that would allow instant transfers to India and facilitate secure cross-border transactions.
“Once this service is established, it will enable instant money transfers to India and pave the way for seamless and secure online cross-border transactions. In the long term, the goal is to link Favara with similar systems in other countries as well,” the MMA said.
In addition, the authority confirmed that work has begun to develop a fintech regulatory sandbox and an innovation hub.
