Electronic Payments in Malta: A steady-paced adoption

Malta has historically been a cash-driven economy, with cash accounting for a significant portion of transactions. However, recent developments indicate a marked transition towards a more digitised payments landscape. In 2016, electronic point-of-sale (POS) payments accounted for only 19% of all transactions; this figure rose to 25% in 2019 and reached 34% in 2022. Similarly, mobile app payments have witnessed a surge in adoption, increasing from less than 1% in 2019 to 3% in 2022.

The catalyst for this shift can be attributed to a combination of factors. The widespread proliferation of smartphones has transformed the way consumers interact and transact, making mobile payment options more accessible and convenient. At the same time, the growing awareness of the security benefits of electronic payments, with their reduced susceptibility to fraud and enhanced transaction records, has further propelled their adoption.

This evolving payment landscape has far-reaching implications for the Maltese economy. Electronic payments offer businesses increased efficiency, enabling them to streamline operations and minimise transaction costs. Additionally, they facilitate better financial management and enable seamless tracking of sales data. Another benefit of the transition is that electronic payments can attract foreign investment by streamlining cross-border transactions.

In recognition of this shift, innovative solutions are emerging to cater to the growing demand for electronic payments. Paymix SoftPOS, a mobile app that converts any smartphone into a point-of-sale device that accepts card and contactless payments, stands as a testament to this innovation. This solution allows small businesses to accept card payments conveniently and affordably, enhancing their cash flow and enabling them to participate fully in the digital payments ecosystem.

Looking towards the future, the trend towards electronic payments is expected to continue in Malta. With smartphones already ubiquitous and as consumers become more accustomed to digital payment methods, cash usage is likely to decline further. This transformation will undoubtedly benefit the Maltese economy, fostering greater efficiency and competitiveness in the global market.

The transition towards electronic payments represents a positive development for Malta’s economy. These modes of payment offer superior efficiency, security, and convenience compared to cash transactions. Innovations like Paymix SoftPOS further streamline the adoption of electronic payments, particularly for small businesses. As the use of electronic payments continues to rise, Malta is poised to become an even more efficient and competitive economic landscape.