Although Sri Lanka can be proud of the progress it has made in digital payments, it still remains largely a cash-driven economy which is not ideal for long-term economic growth.
The current status of the country in terms of payment innovations presents a challenge and also a unique opportunity to drive change.
The Sunday Observer Business spoke to the Chief Executive Officer of CrossBorder Payments (Pvt) Limited, Rohitha Perera for his views on taking Sri Lanka into the next level of Fintech solutions as it transitions to a digital economy.
Excerpts
Q: Sri Lanka is still behind the world when it comes to digital transactions. How do you propose closing this gap with inclusive digital payment solutions?
A: Sri Lanka has made commendable progress in digital payments, yet significant gaps remain in adoption, infrastructure and financial literacy. While many countries have embraced digital payments, Sri Lanka still remains largely a cash-driven economy, which is not ideal for long-term economic growth.
Although the national QR system, LankaQR, was introduced over six years ago, its adoption has been low despite the obvious convenience and benefits of using such a payment method. This presents a challenge but also a unique opportunity to drive change.
At CrossBorder Payments, we believe that inclusion is key to bridging this gap. Our approach is three-fold:
1. Simplified, accessible technology: Many small businesses and consumers hesitate to embrace digital payments due to perceived complexity. Our solutions, such as Marx MPOS (Mobile Point of Sale) and MarxDine (QR-based ordering and payments for restaurants), are designed to be user-friendly and seamlessly integrate with existing business models. Unlike other countries where digital transactions are commonplace, we aim to empower Sri Lankan businesses — especially small retailers — by providing affordable and simple solutions to get them to the next level.
2. Financial literacy and awareness: A significant barrier is the lack of awareness around digital payments, especially among small businesses, rural communities and the elderly. We actively collaborate with financial institutions and regulators to educate the public on the benefits, security and convenience of digital transactions. Our goal is to create a nationwide understanding of the power and importance of digital payments, helping communities move away from cash-based transactions.
3. Affordability and interoperability: High transaction fees and system incompatibilities often deter businesses from going digital. Our focus is on reducing costs, ensuring cross-platform compatibility, and integrating with national payment systems such as LankaPay to create a seamless experience. By addressing these challenges, we aim to drive widespread adoption of digital payments across the country.
We’ve also taken the challenge head-on by building an all-in-one POS solution that targets small retailers. Many small businesses refrain from investing in traditional POS systems due to high upfront costs.
Our solution will disrupt the market by allowing any Android or iOS device to function as a fully-fledged POS system. This will not only empower small businesses but also lay the foundation for further digital engagement through our wallet system. By equipping merchants with affordable and accessible technology, we believe Sri Lanka can accelerate its transition to a cash-free economy and ultimately embrace a digitally inclusive future.
By addressing these areas, we believe Sri Lanka can close the digital payments gap and accelerate its transition to a more digitally inclusive economy.
Q: Moving to a ‘cashless society’ is said to be an effective way to minimise corruption. How fast and best could we get there?
A: A cashless society significantly reduces financial opacity, making transactions traceable, thereby curbing tax evasion, bribery and fraud. However, this transition must be strategic and inclusive. Here’s how we can get there faster:
1. Policy and regulatory support: The Government must take a proactive stance by incentivising digital payments, implementing tax benefits for businesses that go fully digital and enforcing stronger regulations on cash transactions above a certain threshold.
2. Widespread adoption by SMEs and public sector: Digital transformation should start with small and medium enterprises (SMEs) and Government institutions. Encouraging QR payments, digital invoicing and electronic fund transfers (EFTs) in these sectors will set a precedent for the economy.
3. Secure and scalable infrastructure: Cybersecurity and reliability are critical concerns. At CrossBoarder Payments, we are investing heavily in AI-driven fraud detection, real-time monitoring, and blockchain-backed security measures to ensure trust in digital transactions.
4. Public-Private collaboration: A partnership between fintech players, banks, telecom providers, and regulators can accelerate digital adoption by making digital payments more affordable, accessible and secure for all Sri Lankans. With these steps, Sri Lanka can significantly reduce reliance on cash within the next five to seven years, laying the foundation for a transparent, efficient economy.
Q: Marx CrossBorder Payments has led the way in digital innovation for the past five years. How do you see the next five years for Sri Lanka, which wants to create a ‘cashless society’?
A: Over the past five years, we have positioned Marx CrossBorder Payments as a leader in digital financial solutions, empowering businesses with seamless and secure transaction capabilities. Looking ahead, our next five years will focus on three key pillars:
AI-powered payment solutions: We are integrating Artificial Intelligence (AI) and Machine Learning (ML) into our platforms to provide predictive analytics, fraud prevention, and smart financial management tools for businesses and consumers.
1. Expansion of QR and contactless payments: With the success of MarxDine and Marx All in One POS, we plan to extend QR-based and contactless payment solutions into transport, retail, and public services, making digital transactions second nature to Sri Lankans.
2. Cross-border payment innovations: As Sri Lanka strengthens global trade ties, our focus will be on enhancing international payment solutions that allow businesses to seamlessly transact across borders with reduced fees and real-time processing.
3. Fintech for the underserved: Financial inclusion remains a top priority. We are working on introducing micro-payment solutions for rural entrepreneurs, freelancers, and gig workers who often lack access to digital banking.
4. Strategic partnerships and policy advocacy: We will continue working with regulators and financial institutions to shape Sri Lanka’s cashless roadmap. Our goal is to align with the Central Bank’s vision for digital banking, open APIs, and blockchain-driven financial security.
In five years, we envision Sri Lanka being at the forefront of fintech adoption in South Asia, where digital payments are not just an option but the norm, creating a transparent, efficient, and financially inclusive economy.
At CrossBoarder Payments, our mission is to empower businesses and consumers with innovative, secure, and accessible financial solutions. A cashless society is not a distant dreamit is an achievable goal, and we are committed to playing a leading role in making it a reality for Sri Lanka.
We welcome collaboration from policymakers, businesses, and consumers to drive this digital revolution forward, ensuring that no one is left behind.
