Key Facts for Mauritius
- Primary real-time rails: Mauritius Central Automated Switch (MauCAS), Instant Payment System (IPS), and Mauritius Automated Clearing and Settlement System (MACSS).
- Typical settlement times: Transfers clear within seconds, with final interbank settlement processed once daily.
- Common limits: Varies by institution.
What “real-time payments” means in Mauritius
In Mauritius, real-time payments are instant credit transfers processed through the MauCAS Instant Payment System (IPS). These transactions clear in seconds, 24/7, making funds immediately available to recipients. The system’s scope is extensive, covering person-to-person, business, and government payments across all licensed banks and payment providers. It supports transactions via mobile apps, online portals, and QR codes, including cross-border payments to India. The legal foundation is the National Payment Systems (NPS) Act 2018, which establishes the framework for the IPS and mandates participation from domestic retail banks.
The Bank of Mauritius (BoM) is the central regulator and sole operator, owning and managing the MauCAS IPS directly. This centralized model means there are no subsidiary clearing houses; the BoM’s own Real-Time Gross Settlement (RTGS) system handles final settlement once daily. For messaging, the system is built on the global ISO 20022 standard, with APIs available to connect participants who have not yet transitioned. This structure provides a unified and modern foundation for the nation's payment infrastructure, with the central bank steering its development and operations.
Mauritius's regulator-owned system aligns with global standards through its adoption of ISO 20022 and innovative cross-border links, setting a high bar for regional financial integration.
Payment Rail Overview
Mauritius Central Automated Switch (MauCAS) & Instant Payment System (IPS)
Launched in August 2019, MauCAS is the national payment switch operated by the Bank of Mauritius, creating a unified platform for all electronic payments. Its Instant Payment System (IPS) component enables 24/7 real-time credit transfers that clear within seconds across all participating banks and payment providers. The system facilitates interoperability for mobile, online, and QR code transactions, including cross-border payments to India through an integration with UPI.
- All-to-All Interoperability: It connects every bank and non-bank payment service provider, allowing funds to move between any two accounts on the network.
- ISO 20022 Standard: The system is built on the global messaging standard for financial data, ensuring it is modern and compatible with international systems.
- Interoperable QR Codes: It supports a universal QR code based on EMVCo standards, allowing any customer to pay any merchant, regardless of their bank or mobile app.
- Cross-Border Functionality: MauCAS is integrated with India's Unified Payments Interface (UPI), permitting seamless QR-based payments for travelers between the two nations.
Pros
- Reduces transaction costs for merchants and consumers by providing a domestic alternative to international card networks.
- Fosters a competitive market by mandating participation from all retail banks and opening access to non-bank PSPs.
- Operated directly by the central bank, which provides a high degree of security and public trust.
Cons
- Final settlement between institutions occurs only once daily, meaning it is not a real-time gross settlement system.
- The system does not support USSD, which could limit access for users without smartphones.
- Certain use cases, such as government-to-person (G2P) and comprehensive business-to-business (B2B) payments, are still under development.
Mauritius Automated Clearing and Settlement System (MACSS)
Introduced in 2000, MACSS is the country's real-time gross settlement (RTGS) system for large-value payments. It functions as the core infrastructure for high-stakes interbank transfers, settling each transaction individually and with immediate finality. This system is the backbone for major corporate transactions and government revenue collections, effectively minimizing settlement risk in the financial system.
- Real-Time Gross Settlement: Each transaction is settled individually and instantly in central bank money, making payments final and irrevocable.
- Large-Value Focus: The system is specifically designed for high-value, low-volume payments between financial institutions, not for everyday retail transactions.
- Systemic Risk Reduction: By providing immediate and final settlement, MACSS removes the risk of a payment failing to clear later, securing the financial system.
- Government Payment Backbone: It processes critical government revenue collections, such as VAT and pension contributions, electronically.
Pros
- Offers the highest level of security and finality for large-value transfers.
- Plays a critical role in maintaining the stability of the national financial system.
- Established a modern foundation for electronic payments in Mauritius well before retail systems were developed.
Cons
- It is not intended or suitable for small-value, high-volume retail payments.
- Access is limited to financial institutions, making it irrelevant for direct consumer or P2P use.
- Its functionality is specialized and does not support the broader payment use cases found in retail systems.
Limits, Fees, and SLAs
- Limits:A per-transaction cap of Rs 100,000 applies to Instant Payment System (IPS) payments for government services. Other institutional limits may vary.
- R2P Fees:None. The Bank of Mauritius has eliminated fees for account-to-account transfers within the Instant Payment System (IPS) as of June 2024.
- Operating Hours:The MauCAS Instant Payment System operates 24/7, allowing for transaction initiation at any time, including weekends and public holidays.
- Failures & Returns:Participants must provide end-user recourse mechanisms for dispute resolution. If a payment is unsuccessful, a receipt is simply not generated.
Compliance and Risk
KYC/KYB & AML
Mauritius enforces strict KYC and AML rules under the National Payment Systems Act 2018 and specific crypto legislation. The Bank of Mauritius facilitates digital identity verification, while all financial firms must conduct customer due diligence and report suspicious activity to the FIU.
Data Residency & Privacy
The MauCAS operational rules, issued under the National Payment Systems Act, mandate strict transaction confidentiality. While specific data residency laws are not detailed, the framework prioritizes data protection and requires full confidentiality between the central switch and its participating institutions.
Fraud Controls
Fraud prevention is addressed through the MauCAS scheme rules, which mandate security controls and consumer protection mechanisms. The Bank of Mauritius actively monitors the system, while features like payment aliases and interoperable QR codes based on EMVCo standards secure transactions.
Recordkeeping & Audits
While specific retention periods for payment rails are not defined, the broader regulatory approach is strict. For instance, licensed crypto firms must maintain all transaction and customer records for a minimum of seven years and undergo mandatory independent audits of their compliance frameworks.
Lightning Network Integration as a Solution
The Lightning Network is a second-layer protocol built on Bitcoin that processes transactions off-chain. This creates a network of payment channels for near-instant, low-cost payments. While local real-time payment systems excel domestically, they often face limitations with international transactions. The Lightning Network can act as a global bridge, offering a universal rail for cross-border payments that settles instantly, complementing the national focus of systems like MauCAS.
While domestic RTPs offer settlement in seconds, the Lightning Network matches this speed with true finality, globally. Its transaction fees are typically fractions of a cent, a significant cost advantage for cross-border payments compared to traditional correspondent banking. The primary distinction is reach: local rails are confined by national borders, whereas the Lightning Network provides a borderless payment infrastructure accessible to anyone with an internet connection, regardless of location.
- Cross-Border Complexity: It bypasses the high fees, slow processing times, and multiple intermediaries typical of international bank transfers.
- Settlement Risk: Unlike systems with deferred net settlement, Lightning offers immediate, final settlement between peers, removing counterparty risk.
- Microtransaction Viability: With fees often less than a cent, it makes extremely small payments for digital content, gaming, or IoT applications economically practical.
Integrating this decentralized layer presents a forward-thinking path to truly global, real-time finance.
B2B Enterprise Use Cases
- Supplier Payments – Businesses pay invoices to domestic and international suppliers instantly upon approval, improving supply chain liquidity.
“Business value:” Strengthens supplier relationships and opens access to early payment discounts. - Merchant Settlement – Retailers receive funds from customer sales immediately into their accounts, bypassing card network delays.
“Business value:” Improves daily cash flow and reduces dependence on expensive credit lines. - Treasury Optimization – Corporate treasurers move funds between accounts in real time to consolidate cash and maximize investment returns.
“Business value:” Provides precise cash-positioning and higher returns on corporate funds. - Payroll – Companies execute just-in-time salary and wage payments, including for gig workers or emergency payouts outside standard cycles.
“Business value:” Increases employee satisfaction and offers flexibility for modern work arrangements. - Cross-Border Digital Services – A Mauritian firm pays an international contractor for digital services over the Lightning Network, with funds settling instantly.
“Business value:” Accesses global talent with minimal cross-border friction and near-zero fees.
Cross-Border Transactions and Remittances to Mauritius
Cross-border RTP is complex because it requires bridging disparate national payment rails and creating direct foreign exchange (FX) paths. Traditional correspondent banking introduces intermediaries, cost, and delays. Reaching Mauritius involves connecting its domestic systems, like MauCAS, with global partners. This process is further complicated by the need for multi-currency settlement and navigating stringent compliance checks, which can add operational friction to otherwise instant transactions.
- India: A direct payment corridor connects Mauritius's MauCAS with India's UPI, allowing travelers to make QR code payments that settle in their respective local currencies. This eliminates the need for a third-party currency like the US dollar for settlement.
- COMESA & SADC: Mauritius is pursuing regional integration with African economic blocs, positioning itself as a future hub for cross-border payments. The goal is to extend its clearing infrastructure to facilitate transactions across Eastern and Southern Africa.
- Global Trade & Diaspora: This corridor includes remittances from Mauritians living abroad and payments for international trade. While historically slow and costly, these transactions are being modernized by fintech platforms offering faster settlement and lower fees.
The Lightning Network provides a universal settlement layer, bypassing traditional correspondent banking. By using Bitcoin as a neutral bridge asset, it facilitates instant, final settlement for cross-border payments with fees that are fractions of a cent, fundamentally reducing both time and cost.
How Lightspark Makes Integration Easy
Lightspark helps fintechs, digital banks, wallets, and exchanges connect to the Lightning Network with enterprise-grade infrastructure. We manage the complexities of liquidity, optimized routing, and compliance, allowing you to focus on your core product. Our platform provides the developer tooling needed to build and scale payment solutions that offer sub-second settlement globally. By abstracting away the operational overhead, we provide a direct path to offering your customers instant, low-cost international payments. To explore how our solutions can support your cross-border payment strategy and accelerate your time-to-market, Talk to our team.
Sources and Further Reading
- MauCAS Case Study: Case study on MauCAS payments.
- BoM-RBI Memorandum: Mauritius-India central bank payment agreement.
- Lightspark Contact: Contact form for Lightspark's team.
- Transforming Bitcoin: How Lightning Network transforms Bitcoin.
- Crypto Legality in Mauritius: Legality of cryptocurrency in Mauritius.
- Lightning Network Function: Explains the Lightning Network's function.
- Lightning Payments Overview: Overview of Lightning Network payments.
- Mauritius Payment Rails: Explainer on Mauritius's payment rails.
