Morocco’s First VC-Backed Payment License
In a landmark regulatory decision, Bank Al-Maghrib (BAM) granted a payment institution license to Chari, a Moroccan B2B e-commerce startup, making it the first venture capital-backed company to receive such authorization. This decision signals a significant shift in Morocco’s fintech regulatory landscape, opening doors for tech-first challengers to traditional payment incumbents.
What the License Permits
A payment institution license under Morocco’s Law 103-12 authorizes the holder to provide payment services including electronic money issuance, payment account management, fund transfers, and card-based payment execution. For Chari, this enables the platform to offer integrated payment solutions directly to its network of small retailers across Morocco.
Regulatory Requirements Met
To obtain BAM’s approval, Chari demonstrated compliance with capital adequacy requirements (minimum MAD 3 million for payment institutions), submitted a comprehensive AML/CFT program, established a cybersecurity framework meeting BAM’s technical standards, and passed a fit-and-proper assessment of its management team.
Implications for Morocco’s Fintech Ecosystem
This approval sends a clear signal that BAM is open to licensing innovative business models beyond traditional banking groups. Foreign fintech investors should note that Morocco’s payment market, previously dominated by Centre Monétique Interbancaire (CMI), is now accessible to new entrants meeting BAM’s requirements. The regulatory sandbox launched in 2023 remains available for experimental models not yet fitting existing license categories.
Our firm advises fintech companies throughout Morocco’s licensing process, from pre-application consultation to authorization.
