On October 15, 2025, Bank Al-Maghrib granted Morocco’s first payment institution license to a venture-backed startup, marking a historic shift in the country’s financial services sector. Chari, a Casablanca-based B2B platform, secured both regulatory approval and a record-breaking $12 million Series A—the largest funding round in Moroccan startup history. This dual achievement signals Morocco’s readiness to support fintech innovation while maintaining strict regulatory oversight.
For international fintech investors and payment companies, this precedent opens clear pathways into Morocco’s 56% unbanked market. Understanding the legal framework, licensing requirements, and business model implications becomes necessary for any foreign entity considering Moroccan market entry.
Morocco fintech license
The regulatory precedent: what Bank Al-Maghrib’s decision means
Bank Al-Maghrib’s approval represents the first time Morocco’s central bank has granted a payment institution license to a company backed by venture capital. Previous licenses went exclusively to traditional financial institutions or subsidiaries of established banks.
Licensing framework clarified
The payment institution license allows Chari to operate as a regulated financial services provider under Morocco’s banking law. Specific permissions include: acquiring services for merchants, issuing Moroccan IBANs, providing debit cards, facilitating domestic and international remittances, and offering micro-insurance products.
The three-year development timeline proves significant. Chari built its entire technology infrastructure in-house, demonstrating the technical capability Bank Al-Maghrib requires from applicants. This sets a concrete benchmark for foreign fintechs: substantial local technical infrastructure, proven operations, and compliance capabilities become prerequisites for licensing.
Morocco fintech license
Requirements for foreign applicants
The Chari case reveals several requirements for foreign venture-backed fintechs seeking similar licenses:
- Minimum three years of documented operations in Morocco
- Complete technology stack developed and maintained locally
- Proven business model with existing customer base
- Compliance infrastructure meeting Bank Al-Maghrib standards
- Moroccan legal entity with local governance structure
- Capital adequacy requirements meeting central bank thresholds
For international payment companies, these requirements mean market entry through acquisition or partnership becomes more viable than direct licensing applications. The regulatory approval timeline typically extends 18-24 months from initial application.
Banking-as-a-Service implications
Chari’s license includes authorization to provide Banking-as-a-Service (BaaS) to third parties. This creates immediate opportunities for foreign fintechs: rather than pursuing independent licenses, international companies can access Morocco’s market through Chari’s regulated platform.
The BaaS model allows foreign payment providers, neo-banks, and fintech platforms to offer services to Moroccan customers without obtaining their own payment institution licenses. This substantially reduces time-to-market and regulatory burden.
Morocco fintech license
Record funding validates Morocco’s fintech potential
The $12 million Series A round represents the largest venture capital investment in Moroccan startup history, surpassing previous records by significant margins. Lead investors SPE Capital and Orange Ventures bring both capital and strategic value.
Investor composition signals confidence
SPE Capital’s lead position demonstrates institutional investor appetite for Moroccan fintech. Orange Ventures’ participation provides telecommunications infrastructure access and potential distribution partnerships across Orange’s African footprint.
The funding size—$12 million for a Series A in Morocco—compares favorably with Series A rounds in more mature African tech markets like Nigeria or Kenya. This valuation reflects investor confidence in Morocco’s regulatory environment and market opportunity.
Morocco fintech license
Use of proceeds and expansion plans
Chari announced specific deployment plans for the Series A capital: expanding its merchant network from current coverage to 100,000 active merchants by end-2026, scaling its BaaS platform for third-party clients, developing new financial products including credit facilities for merchants, and building regional infrastructure for expansion into francophone West Africa.
The regional expansion strategy deserves attention. Morocco’s regulatory approval often facilitates subsequent licensing in UEMOA and CEMAC countries, where regulators respect Bank Al-Maghrib’s due diligence.
Valuation and exit potential
While the company did not disclose its post-money valuation, industry sources estimate $40-50 million based on the funding round size and investor profiles. This positions Chari as Morocco’s highest-valued fintech startup.
Exit opportunities include acquisition by international payment processors (Visa, Mastercard, PayPal) seeking African market access, strategic acquisition by regional banks expanding digital capabilities, or listing on Casablanca Stock Exchange following planned tech sector reforms.
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Morocco fintech license
From B2B platform to merchant super app
Chari’s business model evolution provides insights for international investors considering similar strategies in Morocco or comparable markets.
Original B2B e-commerce model
Chari launched in 2020 as a B2B e-commerce platform connecting small grocery stores (traditional “hanout” shops) with suppliers. The model addressed clear pain points: inventory management for undercapitalized merchants, supply chain inefficiencies in Morocco’s fragmented distribution system, and working capital constraints limiting stock turnover.
By digitizing ordering and delivery, Chari built relationships with thousands of merchants while generating transaction data demonstrating creditworthiness—data traditional banks lack for these micro-enterprises.
Embedded finance integration
The payment license transforms Chari from logistics platform to financial services provider. The merchant super app now offers:
- Integrated payment acceptance (acquiring services)
- Working capital through merchant cash advances
- Savings accounts with competitive rates
- Insurance products tailored to small retailers
- Peer-to-peer transfer capabilities
This embedded finance approach mirrors successful models like Brazil’s Mercado Pago or India’s Paytm, adapted to Morocco’s regulatory environment and market characteristics.
Converting stores into financial hubs
Chari’s strategy includes transforming grocery stores into agent banking locations. With 56% of Morocans lacking bank accounts, neighborhood shops become access points for financial services: cash deposits and withdrawals, remittance collection, bill payments, and mobile money services.
This distribution strategy works particularly well in Morocco where traditional bank branches remain concentrated in urban centers. Rural and peri-urban populations gain financial access through familiar local merchants.
Morocco fintech license
Market opportunity and competitive positioning
Morocco’s financial inclusion gap represents both challenge and opportunity. Understanding market dynamics helps international investors assess entry strategies and partnership potential.
Financial inclusion statistics
Current data shows 44% of Moroccan adults hold bank accounts, leaving 56% unbanked—approximately 11 million adults. Among the unbanked, 68% cite lack of documentation, 45% reference distance to bank branches, and 42% mention insufficient income to maintain accounts.
Mobile money penetration remains below 10%, substantially lower than Kenya (80%+) or Ghana (50%+), indicating significant untapped potential for mobile financial services.
Competitive landscape
The Moroccan fintech sector includes several players, but Chari’s payment license creates separation. Existing competitors include traditional banks launching digital services (Attijariwafa bank’s mobile app, BMCE’s digital banking), telecom-backed mobile money (Orange Money, Maroc Telecom’s services), and early-stage fintech startups lacking full licensing.
Chari’s regulatory approval and funding combination positions it ahead of potential competitors. The BaaS offering further strengthens competitive positioning by converting potential rivals into platform clients.
Addressable market size
Morocco’s informal commerce sector—small grocery stores, market vendors, micro-enterprises—represents approximately $40 billion in annual transaction volume. Even capturing 5% market share translates to $2 billion in payment flows, generating substantial transaction fee revenue.
The merchant lending opportunity adds significant revenue potential. Working capital needs for Morocco’s 1+ million micro-enterprises exceed $3 billion annually, with most businesses unable to access traditional bank financing.
Morocco fintech license
Legal and regulatory considerations for foreign investors
International investors and fintech companies must understand Morocco’s regulatory framework before pursuing market opportunities.
Corporate structure requirements
Foreign investment in Moroccan financial services requires specific legal structures. A locally-incorporated société anonyme (SA) or société à responsabilité limitée (SARL) becomes necessary for licensing, with minimum capital requirements varying by license type.
Payment institution licenses require minimum capital of 5 million MAD ($500,000), with Bank Al-Maghrib reserving rights to impose higher requirements based on planned activities. All directors and officers must pass “fit and proper” tests administered by the central bank.
Morocco fintech license
Foreign ownership limitations
Morocco generally permits 100% foreign ownership of fintech companies, differentiating it from markets with foreign investment caps. However, Bank Al-Maghrib reviews ultimate beneficial ownership and may require commitments to local employment, technology development, or market development.
Certain activities—particularly those touching foreign exchange or cross-border payments—face additional scrutiny. Foreign investors planning services involving currency conversion or international remittances should anticipate longer approval processes.
Data localization and privacy compliance
Morocco’s data protection law (Law 09-08) requires companies processing personal data of Moroccan residents to register with the CNDP (Commission Nationale de Contrôle de la Protection des Données). Financial services companies face enhanced scrutiny given the sensitivity of financial data.
Data localization requirements mandate that certain customer data remain stored on servers physically located in Morocco. Foreign fintechs must establish local infrastructure or partner with Moroccan cloud service providers meeting regulatory standards.
AML/CFT compliance obligations
Morocco’s anti-money laundering and counter-financing of terrorism regulations align with FATF standards. Payment institutions must implement comprehensive KYC procedures, transaction monitoring systems, and suspicious activity reporting mechanisms.
Foreign investors should budget substantial compliance infrastructure costs. Initial implementation of AML/CFT systems typically requires $200,000-500,000 investment, with ongoing compliance costs of $100,000+ annually.
Morocco fintech license
Morocco fintech license
Morocco fintech license
Morocco fintech license
Partnership and market entry strategies for international players
The Chari precedent reveals several viable approaches for foreign fintech companies and investors targeting Morocco.
BaaS partnership model
For payment processors and neo-banks seeking quick market entry, partnering with Chari as a BaaS client offers immediate access without licensing delays. This approach requires: negotiating revenue-sharing agreements with Chari, white-label arrangement for customer-facing services, and integration with Chari’s payment infrastructure.
Timeline for BaaS partnerships: 3-6 months from initial discussions to commercial launch, substantially faster than independent licensing (18-24 months).
Strategic investment in licensed entities
Acquiring minority or majority stakes in Chari or future licensed Moroccan fintechs provides regulatory access while avoiding direct licensing. Bank Al-Maghrib reviews significant ownership changes, requiring 30-90 days for approval depending on transaction size.
Investment structures should anticipate regulatory requirements: share purchase agreements requiring Bank Al-Maghrib approval, shareholder agreements addressing governance and control, and tag-along/drag-along provisions considering regulatory constraints.
Independent licensing pathway
Foreign fintechs committed to long-term Morocco presence may pursue independent payment institution licenses. This approach requires establishing legal presence in Morocco through SA or SARL, capitalizing entity per Bank Al-Maghrib requirements, developing local technical and compliance infrastructure, and demonstrating business model and financial projections.
Budget requirements for independent licensing: minimum $2-3 million for infrastructure, legal, and compliance costs before commercial launch.
Structure your Morocco fintech entry: legal expertise matters
Morocco’s payment institution licensing breakthrough creates concrete opportunities for international fintech investors, payment companies, and financial services providers. The Chari precedent establishes clear regulatory pathways while demonstrating market viability through record venture funding.
Foreign investors face choices between BaaS partnerships for speed, strategic investments for market access, or independent licensing for long-term control. Each approach requires specific legal structuring, regulatory navigation, and compliance architecture.
Our specialized fintech legal services
Regulatory licensing and compliance
- Payment institution license applications and Bank Al-Maghrib liaising
- AML/CFT compliance program design and implementation
- CNDP registration and data protection compliance
Corporate structuring for fintech
- Optimal legal entity selection (SA vs. SARL) for regulatory purposes
- Foreign investment structuring minimizing regulatory burden
- Shareholder agreements incorporating regulatory requirements
Commercial contracts and partnerships
- BaaS partnership agreements with licensed providers
- White-label service agreements for payment platforms
- Merchant acquiring agreements and payment processing terms
Begin your Morocco fintech expansion
Morocco’s fintech sector moved from closed to accessible in October 2025. The licensing precedent and capital availability create a narrow window for advantageous market entry before competition intensifies.
Cabinet Lafrouji Avocats
64 rue Taha Houssein
20000 Casablanca – Maroc
+212 (5) 22 47 55 29
contact@lafroujiavocats.com
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