How do people in Tonga pay online?
Data on online checkout habits in Tonga is limited. The latest published demand-side survey by the National Reserve Bank of Tonga (NRBT) was carried out in the first quarter of 2016. It found that 41% of adults had a commercial bank account, another 11% used other formal providers, and 34% used no formal or informal financial service. Cash dominated everyday bills: nearly all respondents (98%) paid utility and school bills in cash, and only 10% reported using mobile money services such as Digicel’s.
More people are online now. The World Bank, using ITU data, puts internet use at 67.4% of the population in 2024.
Cards are the direct way to pay a website. Four banks are licensed: ANZ, Bank of South Pacific Tonga, Malaysia Borneo Finance Bank and Tonga Development Bank. ANZ Tonga says its Visa Debit Card can be used online, in stores in Tonga and overseas wherever Visa is accepted.
Remittances matter. In 2016, 70% of adults said they had received remittances in the past year. The NRBT licenses foreign exchange dealers for remittances, including Digicel Tonga Financial Services Limited.
Google Pay is on Google’s list of countries where people can pay online and in apps. Apple Pay is not on Apple’s list for Tonga.
What rules shape online payments in Tonga?
Consumption tax is 15%. The Ministry of Revenue and Customs says consumption tax (CT) has applied to the supply of most goods and services in Tonga at 15% since 1 April 2005, under the Consumption Tax Act 2003. Businesses in a taxable activity must register within seven days of becoming liable.
Imported goods pay CT at the border. Every importer, registered or not, pays CT when goods arrive in Tonga and before Customs releases them, on a value that includes freight, insurance and duty. Online sellers shipping goods to Tonga should expect customers to pay this on delivery.
A payment system law is planned. The NRBT’s National Financial Inclusion Strategy 2023 to 2027 plans a National Payment System Act and a framework for digital financial services and payment services, together with work on interoperable, low-cost digital payment terminals.
How would Omno route payments in Tonga?
A merchant would connect once and set routing rules per method, currency, amount and customer group. In Tonga:
- Card payments in TOP would be routed by BIN to a provider that acquires Visa and Mastercard, with cascading to the next provider in the rule if one is unavailable or rejects the request.
- Google Pay would be offered on the hosted checkout and routed under the same card rules.
- Mobile money would go to a provider connected to a local wallet, with the order held until the wallet confirms.
Webhooks would report the final status of every payment, and the routing-decision log would show which provider handled each payment and why.
What should merchants plan for?
Plan for cards first. Debit cards from local banks are the most direct way for banked shoppers to pay online.
Plan for consumption tax at 15%, and for customers paying CT on imported goods when they arrive.
Plan for change. The central bank plans a National Payment System Act and a digital financial services framework, which may bring new payment options.