Despite the growing popularity and accessibility of digital and contactless payment systems, cash remains the predominant form of conducting transactions in Morocco, according to the 2023 annual report of Morocco’s central bank, Bank Al-Maghrib (BAM).
In 2023, cash payments surged to 402 million transactions, up from 360 million in 2022, according to the report, along with a significant 12% annual increase in cash bank withdrawals.
The value of those withdrawals rose 13% to MAD 399 billion dirhams (USD 39 billion), solidifying cash’s position as the preferred mode for everyday transactions in the country.
While digital payments are on the rise, they continue to represent only a small proportion of the overall market. Card-based payments, including those made through online platforms and point-of-sale terminals, grew by 22% in 2023, totaling 164.4 million transactions valued at MAD 57 billion (USD 5.5 billion).
However, cash withdrawals continued to account for 71% of all card transactions, both in number and value, reflecting Moroccans’ reliance on hard currency.
Contactless payments, in particular, surged in 2023, making up 57% of all electronic payment device transactions, up from 52% in 2022.
The number of E-commerce payments also increased significantly with a 20% rise in transactions and a 15% rise in their total value. The driving factors behind this dramatic increase was greater adoption of online bill payment services and electronic government payments, according to the report.
In contrast, the number of payments conducted via ATMs dropped sharply, declining by 24% in 2023, with a commensurate 22% drop in value compared to 2022.
According to the bank, the shift reflects a broader move toward mobile banking apps and direct payments through service providers’ websites.