Favara Celebrates First Anniversary with 5 Million Transactions

The Maldives Instant Payment System (IPS), known as Favara, has marked its first anniversary by processing five million transactions since its launch on August 26, 2023. Developed by the Maldives Monetary Authority (MMA), Favara has quickly become a cornerstone of the nation's digital financial infrastructure, providing users with innovative, convenient, and affordable access to digital payment services.

In its first year, Favara has processed transactions worth USD 972 million. The system connects five banks, including two local banks—Bank of Maldives (BML) and Maldives Islamic Bank (MIB)—and three foreign banks: Bank of Ceylon (BoC), State Bank of India (SBI), and Mauritius Commercial Bank (MCB). This connectivity enables users to make and receive payments instantly from any bank account within the Maldives.

Favara offers a range of services, including instant payments, request-to-pay, smart addressing, and account verification. These features allow citizens, even those residing on remote islands, to open bank accounts and conduct instant transactions with ease.

The first phase of Favara's adoption focuses on enhancing internal financial transactions within the Maldives. The MMA has outlined plans for a second phase, which will expand the system's capabilities by connecting it to national payment systems of other countries, enabling instant foreign currency transactions.

Favara's success in its inaugural year highlights its potential to further revolutionize the way financial transactions are conducted in the Maldives, positioning the country at the forefront of digital payment innovation.