Tuvalu, a secluded nation in the Pacific Ocean, has introduced its very first automated teller machines (ATMs) at the headquarters of the National Bank of Tuvalu situated in the village of Vaiaku on Funafuti, the country’s main island. This event marks a significant turning point for the small island nation of 12,000 inhabitants, which had never previously had access to electronic banking. Government officials, traditional leaders, members of parliament, and representatives from the diplomatic and business communities attended the ceremony to celebrate the country’s shift towards financial modernization.
Until recent times, all banking transactions in Tuvalu were conducted using cash. On payday, workers had to line up at the bank to withdraw their salaries, often facing long queues and limited access once the bank closed at 2 pm. Daily transactions such as grocery purchases, hotel bookings, and various services were predominantly cash-based.
The total cost for the ATM and point-of-sale system implementation exceeded A$3 million, which was made possible with government support and determination. The prime minister, Feleti Teo, emphasized the historical nature of this development, stating that it marks not only a significant occasion for the country but also a new era for the bank’s services and strategic direction.
The bank initially worked with an external adviser but later contracted Pacific Technologies Limited in Fiji to deliver and install the systems. These systems will be operational at various locations on Funafuti, including the airport and within local villages. Five ATMs have been installed, with an additional 30 point-of-sale terminals set to be installed across the island.
Currently, only prepaid cards can be used at these machines. Customers will need to obtain prepaid cards before they can access the ATMs. Plans are also in place to introduce Tuvalu-issued debit cards, eventually providing Visa debit and credit card functionality for international travel and online purchases.
The introduction of electronic banking is expected to ease congestion, reduce reliance on cash, and improve access to financial services across the outer islands for Tuvalu’s 6,000 banking customers, many of whom hold multiple accounts. The bank intends to provide the service for free initially to encourage users to become accustomed to the system, with fees potentially being introduced in the future.
Source: https://www.theguardian.com/world/2025/apr/16/tuvalu-first-atm-cash-machine-banking
