New Payment Methods in Seychelles: How Digital and Mobile Solutions Are Shaping the Future of Finance

Seychelles, known for its luxury resorts and stunning natural beauty, is also making strides in the realm of digital payments. With an increasing number of residents and businesses moving towards digital solutions, the country is on the verge of a financial revolution. This post explores how new payment methods, including mobile payments, neobanks, and cryptocurrency, are transforming the financial landscape of Seychelles.

The State of Banking in Seychelles

The banking sector in Seychelles is fairly well-developed, but like many small island nations, the population is highly reliant on cash and traditional payment methods. There are currently 10 banks operating in the country, with the Seychelles Commercial Bank and Barclays Seychelles being the most prominent. However, despite the availability of banking services, a large portion of the population remains unbanked or underbanked, particularly in more rural areas.

The Rise of Mobile Payments

Mobile payments have been a game-changer in Seychelles, much like they have across other parts of Africa. In 2021, Seychelles saw the launch of MobilePay, a mobile wallet and payment platform that allows users to pay bills, transfer money, and shop using just their smartphones. With a population of just under 100,000, the platform quickly gained popularity, and by 2022, it was estimated that over 60% of Seychellois were using mobile payment services regularly.

The major appeal of mobile payments is convenience. With mobile phones being ubiquitous, especially in urban centres, individuals can now make financial transactions, purchase goods, and transfer money at the touch of a button. This reduces the need for traditional cash-based transactions and increases financial inclusion for those in remote areas.

Neobanks: A New Financial Era

The neobank sector is beginning to take off in Seychelles, with digital-only banks starting to disrupt the traditional banking model. Neobanks offer customers banking services through apps and online platforms without the need for physical branches. One such neobank, Seychelles Digital Bank, launched in 2021 and offers a variety of services such as savings accounts, loans, and international money transfers.

These digital banks are highly popular with younger, tech-savvy consumers, and they offer lower fees, quicker services, and a more user-friendly experience compared to traditional banks. By 2022, it was estimated that neobanks had captured 15% of Seychelles' banking market, with more people shifting towards these digital-only platforms.

The Future of Payment Methods in Seychelles

Looking ahead, the future of payments in Seychelles is bright. Mobile payments and neobanks are expected to continue growing, particularly as technology becomes more embedded in daily life. Additionally, cryptocurrency adoption could further reshape the payments landscape, enabling faster and more secure cross-border payments.