The Maldives Monetary Authority (MMA) has reported that MVR 768.5 billion was transferred from one account to another through money transfer services in the past year.

According to MMA’s latest payments bulletin, the growth in the amount of money in circulation remained steady in 2024. Currency in circulation rose from MVR 4.1 billion in 2023 to MVR 4.2 billion last year, representing an increase of 5 per cent. The central bank attributed this growth to expanded ATM services, noting that the total currency in circulation increased for the second consecutive year since 2022.

Cash transactions are conducted via ATMs, point-of-sale terminals, and bank branch counters. In 2024, the total number of cash withdrawal transactions reached 8.5 million, with 96 per cent conducted through ATMs. The remaining transactions were completed using other channels, including POS terminals and counters.

Despite the increase in currency in circulation, the total value of cash withdrawn fell slightly. Last year, MVR 34.8 billion was withdrawn in cash, down from MVR 34.9 billion in 2023. MMA indicated that the decline was influenced by the public’s growing preference for account transfers over cash.

Account transfers have emerged as the dominant method for moving funds. MMA reported that 132.3 million transactions were carried out through transfer services in 2024, amounting to MVR 768.5 billion. Intra-bank transfers accounted for 93 per cent of these transactions, valued at MVR 372 billion. Mobile banking applications were the primary channel for these transfers, facilitating 97 per cent of the activity, with the remainder completed via ATMs and other methods.

The rise of digital transactions has coincided with increased use of cards, which have become a widely used payment method across the country. In 2024, card transactions rose by 26 per cent to exceed 80.8 million, with the total transaction value increasing from MVR 27.5 billion in 2023 to MVR 34.8 billion.

Card transactions include both domestic and international payments and are mainly executed online, through POS terminals and bank-provided payment gateways. Last year, transactions conducted via POS terminals increased by 29 per cent to 64.6 million, representing 80 per cent of the total card transactions.