Sada Reddy: Development of e-money in Fiji
Statement by Mr Sada Reddy, Governor of the Reserve Bank of Fiji, at the launch of the
Digicel Mobile Money Transfer Services, Suva, 15 July 2010.
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Executive Management & Staffs of the Digicel Fiji Limited,
Members of the Media,
Distinguished guests,
Ladies and gentlemen.
Today marks another achievement towards the development of e-money in Fiji. I
congratulate Digicel and its partner Flex Pacific (Fiji) for this remarkable achievement, having
only entering Fiji's cellular phone market in late 2008. The launch of Digicel Money today is a
testament to the people of Fiji that Digicel is committed to providing competitive services.
Today we have become a leading country in the Pacific region to offer mobile money
services, an achievement that the people of Fiji should be proud of.
Mobile money is a quicker, easier and cheaper way of transferring money using mobile
phone technology and network and customers will be able to use this service right away.
However mobile money also has the capabilities to pay for bills and other goods and services
and even has the potential to connect with banks and provide banking services to the
unbanked. I believe that Digicel has phased its mobile money project and this will become
possible in the near future. Mobile money service is important for Fiji because it is estimated
that about 50 percent of Fiji's population does not have easy access to financial services.
The launching of Digicel mobile money service would ensure bringing this number down to
an acceptable level given its extensive network coverage.
Fiji
Most of you may be aware that the Reserve Bank launched the "E-money project" on
9th of June this year to support the development of mobile money in Fiji. We have worked in
close consultation and collaboration with the mobile network operators for the orderly and
sustainable development of mobile money in Fiji. Following a provisional licence provided by
the RBF early this year, Digicel undertook their pilot test phase on mobile money services,
which was assessed as successful. I am happy to say that Digicel has met all the Reserve
Bank requirements to gain approval for the full launch of Digicel mobile money.
Having said this, I wish to emphasize that the product will only be as useful as its ability to
have great penetration in Fiji, particularly to the remote and maritime areas. Likewise, that
the people of Fiji are able to witness and experience a reduction in costs for remitting funds
domestically through this mode. Also, that Digicel's mobile money system is interoperable
with other entrants in this market. Public awareness, customer education on the
requirements to use the service, training and proper selection of agents and proper
disclosure of charges are just some of the factors that will contribute to success in this new
venture. These are some challenges that I wish to pose to Digicel at the outset as they
endeavor on this significant accomplishment.
The RBF felt it appropriate to adopt a more flexible approach in our regulation of this
particular payment system at these early stages in-order to allow this initiative to develop and
thrive. We welcome innovation and investment and at same time will build up regulatory
oversight as the market develops. We are currently working on a best practice Payment
Systems Legislation, to licence and regulate all providers of the E-Money services in Fiji. The
legislation will be based on four general principles of i). safety; ii). efficiency at the national
level; iii). equitable access to all users; and iv). consumer protection. The draft legislation has
been sent to experts for their comments.
The RBF's commitment to the Digicel mobile money initiative is because we realize the great
potential this development will have in extending financial services to the unreached areas
and in the process, there will be greater economic activity in the remote and maritime areas
hence eradication of poverty. Overall, that it will improve the lives of our people in these
regions.
I wish Digicel mobile money every success and thank Digicel for continuing to have
confidence in Fiji and contributing to our development.
Thank you.