Madagascar is a developing country, whose financial system has been in constant evolution lately. A system largely characterized by the use of traditional means of payment such as cash. However, with the development of technology and access to the Internet, new means of payment are increasingly used in the country.
Payment in cash
Cash is the most common means of payment in Madagascar. It’s used for everyday transactions, such as food purchases and utilities. The Malagasy Ariary is the national currency used in the country, whose exchange rate varies according to the season. However, it is important to note that the use of cash can present security and theft risks.
Payment by check
Payment by check is also adopted in Madagascar, although its use is more limited compared to cash. Checks are primarily used for larger transactions such as commercial transactions and bill payments, although it should be noted that they can take several days to be cashed and the associated fees can be high. In addition, the use of checks is limited to certain regions and is declining due to the difficulty for merchants and individuals to verify their validity as well as the growth of other payment methods.
Credit cards
Credit cards are increasingly used in Madagascar, especially in the major cities. Major international credit cards, such as Visa and MasterCard, are accepted in popular stores and restaurants, but their use is still restricted in rural and remote areas. This is due to the low population density and limited financial infrastructure in these areas.
Bank transfers
Bank transfers are also more common in the country. Indeed, banks offer online money transfer services and thus, companies are increasingly using this means for payments to other companies and salaries.
Mobile transfers
Finally, online transactions and mobile payments are becoming truly popular in Madagascar. Businesses and individuals can use applications to make online payments and services such as Mvola, Orange Money and Airtel Money allow users to transfer money and pay bills from their cell phones. However, it’s important to note that access to the internet and these forms of payment may be limited in some rural or remote areas.
In Madagascar, cash is still the most common means of payment, and one should always have some on one’s person, but new means of payment such as credit cards and mobile payments are becoming more common, but very limited depending on the region.
