Seychelles Promotes “Cash-Lite” Approach to Support Vulnerable Groups

Seychelles is taking a “cash-lite” approach to ensure that specific segments of the population, which are less adaptable to change and heavily rely on cash, are provided with payment options.

The Central Bank of Seychelles (CBS) stated that this approach will continue until digital alternatives become more prevalent and gain confidence in the market.

The transition to digital payments offers numerous benefits, including increasing transaction transparency. CBS is committed to creating an environment conducive to the adoption of digital financial solutions that are convenient, affordable, reliable, efficient, and safe. The goal is to cater to the needs of the entire population, including vulnerable groups.

This “cash-lite” approach is part of the National Payment System Modernization Plan and Seychelles Fintech Strategy.

The Chairperson of the Seychelles Association for the Blind and Visually Impaired (SABVI), Brigitte Lablache, expressed support for digital payments but also pointed out some disadvantages. Lablache explained that some individuals are uncomfortable providing their card and PIN number to others, as they prefer to use cash for purchases. Security concerns and trust are significant factors, especially among those who are visually impaired.

Lablache suggested that banks provide ATMs with larger keys to accommodate individuals with difficulties in using standard ATM machines. Additionally, she acknowledged that some visually impaired individuals face challenges in using smartphones designed for the visually impaired.

The Central Bank of Seychelles recognizes the importance of digitalization but acknowledges that cash remains essential in the global and domestic financial system. Disincentives to using cash may be introduced to encourage digital payment adoption once sufficient alternatives to cash are available in the market.

Efforts will be made to engage vulnerable groups and better understand their challenges, leading to the introduction of products and services tailored to their needs. Financial education, particularly digital financial literacy, will also be a focus to increase awareness of the benefits of digital payments.

The Seychelles government’s Elderly and Disabled Division is working to support digital inclusivity for the disabled. It has held meetings with the Central Bank and the Seychelles Bankers’ Association to address concerns of persons with disabilities. The government is encouraging banks to offer services that facilitate the lives of individuals with disabilities.

The Central Bank is also collaborating with the Ministry of Youth, Sports, and Family through the Elderly and Disabled Division to ensure vulnerable groups are not excluded from the financial system. The ongoing efforts include collecting data on the demographics and needs of vulnerable groups to identify areas where resources can be best utilized to address their challenges.

For visually impaired individuals, appropriate frameworks are needed to identify and mitigate risks associated with their financial transactions, especially in the era of increased digitalization.

Various initiatives have been implemented to cater to vulnerable groups, including talking ATMs, instructions in Creole on ATMs, and 24-hour call centers for emergencies and guidance. Some banks offer fast-track lanes for the elderly and individuals with disabilities. Additionally, digital financial literacy sessions have been organized to educate vulnerable groups about cyber risks, fraud prevention, and secure digital payment usage.