Digital Wallets in Cuba

Ryan · August 4, 2021

I had been wondering about this and why it had not been made official.

Apparently it was, quietly, last March.

Phone credit (easy to send top-ups from abroad) can now officially be used for payment of goods in certain shops. Phone balance cannot be converted to cash or deposited in an account. It can only be used for purchases of a maximum of 1,500cup (officially about $60) and a wallet total cannot exceed 5,000cup ($200).

https://www.cadenagramonte.cu/english/show/articles/32388:mobile-wallet-will-be-available-for-electronic-payments-by-transfermovil

I knew phone credit has been used for unofficial (black market) payments for years, but since March, 2021, the government is, tentatively, getting in on the act. I think those limits will raise quite quickly.

Of course there are lots of unspoken aspects. The government gets the hard currency sent from abroad and allows the population, who have family/friends abroad, to spend a digital cup version of that money in overpriced official stores. Also, the government will know (or could know, if they have their house in order) exactly how much everyone using this system is spending, when, on what, and in what store. In most places we don't worry about that too much when we pull out our supermarket loyalty cards. Cuba is a bit different. I'm sure lots of us have heard stories of people walking a few blocks before quietly dumping the leftovers of a lobster dinner. Most places would have money-laundering concerns with a system like this. Cuba, I'd doubt if they'd be too concerned with the money-laundering issues most countries care about, as long as a decent percentage of the hard currency ends up in General's uniform pocket.

Cubacel has sales generally twice per month, where they will often double the top-up amount sent and add data usage allowance too, sometimes free texts. The free amount awarded as part of that offer could never be used to transfer credit phone-to-phone (paid-for credit can be transferred), so it is very unlikely that the free credit provided could be used for purchases. The free credit amount is handled separately to the paid-for credit on the phone, so Etecsa know exactly which is which. Though I am sure some enterprising Cubans have found ways around this too. In any case, the free top up amount can be used for phone calls and internet usage (when available) while the paid-for amount can now, officially, be used for purchases.

Again, only for Cubans who have friends/family with some spare money and who have access to one of the stores that accepts Transfermovíl.

Another article here.

https://www.theclevelandamerican.com/etecsa-and-transfers-to-cuba-how-does-electronic-money-work-for-a-mobile-phone-scale/