By Tony Laguette, Associate Director, Business Development, Mauritius
The advent of the World Wide Web in the 1990s marked a significant turning point in consumer behaviour. E-commerce soon emerged as a revolutionary force, allowing consumers to purchase goods and services from the comfort of their homes, bypassing the long queues and limitations of traditional bricks-and-mortar stores. This shift not only streamlined shopping experiences but also introduced secure payment systems that built consumer trust. The COVID-19 pandemic in 2020 further accelerated this trend, as lockdowns pushed consumers to embrace online shopping like never before.
Unlocking potential in emerging markets
While e-commerce has been well established for many years now, emerging markets still present a vast landscape of opportunities for digital business growth. Take Africa, for example. With a burgeoning young population eager to digitise their lives and explore alternative payment methods, a vibrant digital ecosystem is taking shape. This generation is increasingly familiar with technology-driven platforms, engaging with e-payments for services ranging from e-hailing to streaming and e-commerce.
Mauritius: a launchpad for digital business
For businesses looking to expand internationally, domestic markets serve as an excellent testing ground. Mauritius has strategically positioned itself as a competitive and regulated hub for internationalisation through its Payment Intermediary Services (PIS) licence, introduced in 2008. This licence facilitates transactions conducted outside Mauritius, allowing businesses to further leverage a Global Business Licence (GBL).
The PIS licence is crucial for intermediaries that connect merchants with financial institutions, providing holders with support from acquiring and issuing banks. The licence encompasses a range of services, including online payment gateways, payment processors, e-wallets, and fund transfer services. By acting as a bridge, licence holders enable clients to transact using various payment methods, such as credit cards, direct debits, and real-time bank transfers.
A regulated and secure environment
The PIS framework in Mauritius is regulated by the Financial Services Commission (FSC), ensuring licensees operate within a well-regulated environment that adheres to international compliance standards. As a whitelisted jurisdiction by European standards, Mauritius mandates stringent anti-money laundering (AML) and counter financing of terrorism (CFT) measures, significantly reducing operational risks.
Moreover, Mauritius aligns its data protection laws with the European Union’s General Data Protection Regulation (GDPR), ensuring data is handled according to the highest international standards.
The ideal ecosystem for PIS licence holders
A leading international financial centre, Mauritius offers an ideal environment for PIS licensed companies, with its political stability, a robust legal framework, and sizeable pool of finance and compliance professionals. This ecosystem not only supports operational substance but also reinforces Mauritius’ position as a strategic gateway between Africa and Asia, providing favourable time zones for global business opportunities.
The reputation of Mauritius as a trustworthy jurisdiction for complex and sensitive transactions further enhances its appeal. PIS operators also benefit from multi-currency accounts, simplifying cross-border transactions and fostering international trade.
To remain competitive, local authorities in Mauritius are dedicated to nurturing a vibrant digital economy. Their proactive approach ensures that the jurisdiction is well-equipped to support companies seeking international expansion. Additionally, operators in Mauritius enjoy a tax-efficient structure, including partial exemptions on profits, no withholding tax on dividends, and the absence of capital gains tax.
To establish a PIS licence, businesses must pair it with a GBL, which requires a minimum capital of MUR 2,000,000 (approx. USD 45,000).
How can we help?
At IQ-EQ Mauritius, our experienced and dedicated team is here to guide you through the licensing process and ensure your company is fully operational. We streamline every step, from obtaining the necessary licences to launching your business successfully.
