MMA: PayPal’s internal decision stopping introduction of service in Maldives

Central bank, Maldives Monetary Authority (MMA) states it is an internal decision of PayPal that has stopped the introduction of the financial technology company’s services in the Maldives.

MMA shared an update regarding efforts underway to introduce PayPal services in the Maldives in response to a letter sent by North Galolhu MP Mohamed Ibrahim (Kudoo).

Kudoo, in a letter sent back in April, pointed out President Dr. Mohamed Muizzu’s pledge to enable foreign online payment systems in the Maldives. He added that he has not observed any government institution or a bank undertake this work despite one year and four months in office.

MMA, in its response, said the central bank initiated discussions with PayPal in 2020 after identifying that there is sufficient demand for the service in the Maldives. Through discussions spanning between 2020 and 2021, MMA said it had learned PayPal services cannot be further expanded in the Maldives due to an internal decision by the company. 

“These decisions are usually made by such companies after carrying out feasibility studies in accordance with the relevant policies when considering to expand its to introduce or expand its services to another country,” the central bank explained.

Nevertheless, MMA noted that the Economic Ministry is currently spearheading a push to introduce PayPal services in the Maldives. The central bank said it was cooperating with the Ministry in these efforts, including sharing available information.

MMA emphasized that it has developed the National Payment System Act along with payment system regulations to establish a legal framework aimed at enabling modern and innovative payment services to operate securely and efficiently.

As such, the central bank said there is no obstruction to providing online payment services via digital wallet or other platforms in the Maldives after obtaining permit and license from MMA in line with the laws and regulations.

Prior to this, Economic Minister Mohamed Saeed said the government had submitted its full proposal to PayPal to introduce its services in the Maldives. Saeed said the government expects to reach an agreement with PayPal “very soon.” But he was unable to say when the service would become available in the Maldives. This was back in August.

PayPal is an American multinational financial technology company that operates an online payments system in the majority of countries that support online money transfers. It serves as an electronic alternative to traditional paper methods such as checks and money orders.