Industry experts in Sri Lanka highlight a persistent reluctance among citizens to adopt non-cash transactions, despite the widespread ownership of debit cards and mobile devices. This reluctance indicates the need for concerted efforts to bolster confidence in digital payment methods.
Mastercard Sri Lanka Director Mahesha Amarasuriya revealed that, on average, less than five transactions are conducted per day at Point of Sale (POS) terminals, despite the country boasting 111,205 such terminals as of September last year. Similarly, QR merchants register less than five transactions per quarter of a financial year.
Despite the circulation of 18.3 million debit cards, the average number of transactions per card for the entire year stands at a mere six.
Amarasuriya emphasized the necessity for collaboration among payment networks, financial institutions, fintech companies, and technology firms to expand the adoption of non-cash payment methods. He stressed that growing the digital payment ecosystem benefits all stakeholders.
Prof. Shantha Fernando from the Faculty of Engineering at the University of Moratuwa underscored the importance of banks aligning themselves with evolving technologies to meet customer expectations.
While acknowledging the high mobile penetration in Sri Lanka, Prof. Fernando noted that the adoption of new technologies remains low as a percentage of the population. He highlighted the increasing interest among Gen Z individuals in digital transactions, urging banks to proactively prepare for this shift in consumer behavior.
In light of technological advancements, Prof. Fernando cautioned against hastily embracing the latest innovations without ensuring their security and reliability. He advocated for a cautious approach, favouring tested solutions that have undergone sufficient stabilization to address potential glitches and shortcomings effectively.
