The Maldives Monetary Authority (MMA) has confirmed that the country’s instant payment platform, Favara, will be directly connected to India’s Unified Payments Interface (UPI) by July 2026, marking a major advancement in regional financial connectivity. Central bank chief and MMA Governor Ahmed Munawwar announced the timeline, describing the integration as a key step toward facilitating fast, secure and cost-efficient cross-border transactions between the Maldives and India, two markets that are closely linked through tourism, trade and people-to-people ties.
Governor Munawwar explained that the MMA has invited local banks and payment service providers to become equity partners in Payment Maldives, the company that will anchor this innovation. Payment Maldives will work closely with existing Favara participants to roll out a nationwide QR code payment system that complies with the new National QR Code standard, branded PayMv, by April. This domestic QR infrastructure will serve as the foundation for the subsequent international linkage with UPI, helping to ensure that Maldivian merchants and customers are ready for seamless cross-border interoperability once the connection goes live.
For tourism and hospitality businesses across the Maldives, including resorts, guesthouses, travel agencies, restaurants and retail outlets, the development is expected to significantly enhance the payment experience for visitors. Once implemented, Indian travellers will be able to make everyday payments in the Maldives simply by scanning QR codes with their familiar UPI-enabled apps, while merchants receive instant settlement into their Maldivian bank accounts through Favara. This reduces reliance on cash, simplifies foreign currency handling, and can help small and medium-sized enterprises operating in resort islands and local communities integrate more easily into the formal digital economy. The improvement in payment convenience and transparency is anticipated to support higher spending, smoother checkouts and stronger business confidence throughout the tourism value chain.
The announcement also comes at a time when the Maldives is grappling with a worrying rise in financial fraud. Governor Munawwar highlighted that 165 fraud cases were reported to police in November alone, resulting in losses of USD 77,821 and averaging around five incidents per day—figures he described as alarming for a small country. He pointed out that the elderly population is particularly vulnerable to scams and deceptive schemes. By strengthening digital payment rails through Favara, PayMv and the future UPI linkage, the MMA aims to encourage the use of secure, traceable channels that can be better monitored and protected compared with fragmented, informal payment methods.
In response to these challenges, the Governor underscored the importance of the recently launched National Financial Inclusion Strategy, which places security, trust and broad-based access at its core. The strategy gives special priority to protecting vulnerable groups, including the elderly and women, while also improving financial literacy, supporting SMEs and safeguarding consumer rights. Coupled with the upcoming QR-based payment ecosystem and the Favara–UPI connection, these measures signal the Maldives’ determination to modernise its financial system, enhance resilience against fraud, and offer global visitors and investors a more secure, digitally advanced environment in which to do business.
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