“Any solution that reduces dependence on cash is beneficial”

Following the presentation by Stephanie Ng Tseung, Head of Payments at the Mauritius Commercial Bank (MCB), on card and digital payment trends among MCB clients during the Black Friday and Christmas shopping seasons, members of the media engaged in a Q&A session. The session provided insights into MCB’s ongoing efforts to innovate and promote digital payment solutions, such as Tap-to-Pay and enhanced usage of the Juice app, while addressing challenges related to cash dependence and client adoption of digital tools. From analyzing transaction limits to exploring the role of data in driving business insights, the Q&A underscored the ambition to build a cashlite economy while supporting diverse client needs.

Have any other digital payment methods been introduced this year?

Yes, we have introduced additional digital payment methods this year. One of these is Tap-to-Pay, which is essentially a digital version of your physical card integrated into our mobile application, Juice. Mobile phones have become indispensable in our lives, and they are increasingly used for payments. While the MauCAS QR code works perfectly for local transactions, it is not suitable for international payments. By integrating a digital card within the mobile app, users can make payments directly via their phones when traveling abroad. This enhances convenience and aligns with global payment trends.

What is the limit for Touch-and-Pay transactions?

Every country establishes its own limit for Touch-and-Pay transactions. In Mauritius, the limit is Rs 2,500 per transaction without requiring a PIN. For example, if you wish to pay Rs 3,000, the system will prompt you to enter your PIN. You can still use the Touch-and-Pay feature for the transaction, but authentication will be required.

We also have anti-fraud systems in place to protect our clients. For instance, if a client loses their card, no one else can use it indefinitely to make unlimited Touch-and-Pay transactions. Our velocity monitoring systems ensure that after a certain number of transactions or spending thresholds, users will be required to enter their PIN for security purposes.

In other countries, these limits vary. For example, in Europe, the limit is around €50, while in Australia, it is A$100.

What was the impact of the 14^th-month bonus on the financial figures presented?

When we look at the figures presented, it is natural to consider whether the 14^th-month bonus has had a cause-and-effect relationship with these numbers. However, to truly measure its impact, it is necessary to compare the current year’s data with that of previous years. At this stage, it would be premature to draw any definitive conclusions about its effect on the presented figures.

Can you measure transactions made through other mobile applications used by your clients? Additionally, do you share insights gained from your data internally, or do you plan to provide these insights to clients?

Regarding the first question, yes, we track the use of other mobile applications by our clients. There are two ways we measure this:

1. We monitor Juice users who scan non-MCB QR codes, such as MauCAS QR codes.
2. We also track accounts registered on other mobile apps. Through the EPS system, users can link any bank account to any device. Similarly, we monitor non-MCB accounts linked to Juice, although naturally, there are more MCB accounts than non-MCB accounts registered within Juice.
   
   

We do not view this as competition, but rather as part of building a broader payment ecosystem. For us, any solution that reduces dependence on cash is beneficial. Many do not realize that cash comes with significant costs. For merchants, there are risks such as theft, as well as operational costs associated with handling and securing cash. For banks, cash involves costs for handling, storage, and logistics. By promoting digital payment solutions, we can dematerialize payments and reduce reliance on cash.

As for the second question, concerning data insights, this is precisely one of the topics we are discussing. We are beginning to notice a growing interest among clients in accessing data insights. Our data teams are actively working on developing a service that would provide businesses with access to anonymized data. The data will be aggregated, analyzed, and shared anonymously, ensuring client confidentiality.

On Black Friday, 316,000 distinct MCB clients conducted transactions. During the Christmas shopping season, this figure increased to 371,000 clients.

 

Payment data can provide businesses with valuable insights, such as customer profiles, spending patterns, peak transaction hours, and even sales trends across different days. For instance, businesses could identify which time slots or days are most profitable. This adds significant value to decision-making.

Can you share the number of clients who transacted during the Black Friday and Christmas seasons?

(Editor’s note: this information has been provided to BIZWEEK by MCB, following our question and a request after the presentation) To illustrate, during Black Friday, MCB recorded Rs 2 billion in spending. This involved 316,000 distinct clients, representing a 23% increase compared to 2023. Similarly, during the Christmas shopping season, 371,000 clients transacted, reflecting a 9% rise from the previous year.

On January 3^rd, branches were overwhelmed with clients. What solutions do you have for people who do not use digital tools or have specific needs requiring branch visits?

It is true that, despite our numerous innovations and efforts to educate clients about digital tools, our branches remain very busy. A closer analysis reveals three primary reasons for this:

1. Cash lovers: A segment of the population, especially individuals aged 60 and above, prefers using cash because it gives them a sense of control. They value the physical, tangible nature of cash, which they find reassuring compared to digital payments.
2. Cash withdrawals: Some clients visit branches to withdraw cash. To address this, we have increased the withdrawal limit at counters from Rs 10,000 to Rs 20,000.
3. Cheque payments: There are still businesses and sectors that pay salaries via cheques. Consequently, employees visit branches to encash these cheques. While we promote solutions such as digital salary payments and bulk payment systems, some sectors continue to rely on cheques.

Additionally, some merchants, while accepting digital payments, still deal with significant amounts of cash, and need to visit branches to deposit it.

Despite the significant strides in digital payment solutions, we are not yet a cashless society. However, we are steadily moving towards becoming a cashlite economy, striking a balance between promoting digitalization and catering to all segments of our population.