Overview of Haiti’s payment system 

Haiti is a country which holds a long history of cash transactions, limited banking penetration and infrastructure and banking constraints especially in the rural areas. However the past decade has been a revolutionary one, with digital and fintech innovation, mobile payments and electronic transactions, the country has moved towards financial inclusion and regulatory modernization along with a growing demand of innovation from consumers and organisations. The central bank - Banque de la République d’Haïti (BRH) has played a key role in this change and setting policies and regulations for the payment system. The key elements of Haiti’s payment ecosystem include

• Commercial banks which offer deposits, ATM, savings account services etc.
• Interbank payment systems and clearing houses such as the Haitian Interbank payment system (SPIH).
• Mobile money and mobile wallet providers like Moncash and other entrants like HaitiPay.
• Remittances are a major inflow of funds and they’re often settled via digital channels or cash pick up. 
• Regulatory and legal framework governing the laws of the country on electronic payments as well as the function of overseeing internet payment service providers and other service providers as well. 

Let's explore, through this article, these rails in detail and find out how fintech is re-shaping Haiti’s economy. 

Moncash - Haiti’s go to mobile wallet

Moncash is perhaps the best known and most widely used mobile/digital wallet solution in the country. It has, over time, become a core pillar of the economic system of the country standing as the facilitator of financial inclusion and electronic payment ecosystem. 

It was originally launched as Tcho Tcho Mobile more than a decade ago through a major partnership among Digicel, Scotiobank and Yellowpaper clubbed with external funding. In 2015, it was rebranded as Moncash with a broader network and wider acceptance across merchants, individuals as well as organisations. 

Using Monchash, one can;

1. Register for a digital wallet using mobile phone or directly via moncash app.

2. Conduct P2P transactions.

3. Easily top up and cash out via agent networks.

4. Use it to pay bills, pay merchants and recharge digicel mobile lines directly.

5. In many cases, remittances can also be directly deposited into Moncash wallets coming in from international channels. 

Social Impact and challenges of Moncash;  

Moncash has now become a choice of over 2 million users in Haiti. It deploys thousands of agents across the country of cash ins and cash outs and it is widely used by agencies, NGOs etc for distributing aid as it provides lower costs and better reliability. 

Yet, the infrastructure is developing and the system faces challenges in terms of increased fees, lack of trust and connectivity in rural areas and a need for wider merchant adoption and expanded functionality looking at the various modern payment solutions across the world. 

Clearing system in Haiti 

The system of Automated clearing House which corroborates batch electronic transfers in many countries inspires the analogous clearing house system in Haiti;

1. Haitian interbank Payment system (SPIH): this system allows funds to be transferred in real time between bank accounts using the central bank infrastructure. It supports account transfers between banks and official institutions. 

2. The central Bank (BRH) combined with SPIH and associated regulations also provides check clearing and interbank networked services. 

3. Large transfers are, on the other hand, settled by SWIFT, correspondent banks etc for cross border transfers as well. 

As a large portion of the population is unbanked, ACH rails are only limited to those who have the access predefining the benefits of ACH in the country.

Digital transformation with Mobile wallets and digital payments

Beyond Moncash, there are other systems as well which are evolving in the digital sphere;

1. Fintechs - HaitiPay and TransFi are examples of evolving fintechs in the country. To better reach both banked and unbanked, Haitipay emerged from the collaboration of EMTECH and Haitipay on a proof of concept for a central bank's digital currency(CBDC) infrastructure and mobile wallet services. While, widely used platforms like TransFi emerged as they fit well in the economic requirement of cheaper, faster and accessible payment means.

2. Mobile Money Pilots - mobile money services are widely set up by providers such as Voila, Mercy Corps and Unibank to help with better accessibility in rural regions and to aid the development. 

3. Merchant platforms - these platforms include ecommerce, POS, QR systems etc. which enable merchants to partner with digital payment services so that they can easily accept cashless payments, improve security and efficiency leading to overall cost reduction and avoiding risks of dealing directly in cash. 

Future of payments and financial evolution in Haiti 

The future of payments in Haiti looks promising. Some of the aspects driving this are listed below;

1. Explanation of Mobile wallets and their functionalities catering to the specific needs of the country.
2. Regulatory modernization and government support.
3. Improved infrastructure and facilities.
4. Introduction of new networks and open finance.
5. Digital cash and digital currencies.
6. Growth of trust, literacy and consumer awareness.
7. Fintech and private sector innovation. 

This brings us to the fact that TransFi offers quick and accessible integrations with local payments rails, easy digital assets settlements and a worldview into currencies and payments methods used all across. TransFi is helping the many countries in the global realm embrace a better future with the ease of the best services and interface at power by connecting users with over 100+ currencies, 250+ local payment methods, and 80+ digital assets, giving both senders and receivers control, speed, and cost savings.   

What’s next? 

For companies, NGOs, institutions as well as government organisations looking to evolve the country’s payment rails and wanting to engage or improve digital payments in Haiti, getting in touch with the specialists of the game could be the solution. TransFi stands as one such partner offering payment rails, connectivity, compliance and the fintech edge over monetary flows, this system could help flip the adversities into opportunities for Haiti. Contact TransFi’s expert team to know more!

Also read: San Marino’s Payment Rails & How They Work – SEPA, Card Payments & Digital Banking Growth

Frequently asked questions (FAQs)

1. What is Moncash and how is it helpful?

Moncash is perhaps the best known and most widely used mobile/digital wallet solution in the country. It has, over time, become a core pillar of the economic system of the country standing as the facilitator of financial inclusion and electronic payment ecosystem. 

2. How has Moncash impacted Haiti socially?

Moncash has now become a choice of over 2 million users in Haiti. It deploys thousands of agents across the country of cash ins and cash outs and it is widely used by agencies, NGOs etc for distributing aid as it provides lower costs and better reliability.

3. What is the role of SPIH in Haiti?

This system allows funds to be transferred in real time between bank accounts using the central bank infrastructure. It supports account transfers between banks and official institutions.

4. How are fintechs evolving in Haiti?

There have been more fintech entrants, partnerships with merchants and cooperation among bank and non bank service providers along with private sector reforms, together are pushing boundaries in Haiti. 

5. How is TransFi a game changer for Haiti’s payment ecosystem? 

TransFi offers quick and accessible integrations with local payments rails, easy digital assets settlements and a worldview into currencies and payments methods used all across. TransFi is helping the many countries in the global realm embrace a better future with the ease of the best services and interface at power by connecting users with over 100+ currencies, 250+ local payment methods, and 80+ digital assets, giving both senders and receivers control, speed, and cost savings.