Joshua D'Costa
Marketing & Growth
May 5, 2025
|
5
min
Morocco’s SaaS and digital services have seen a surge in new ventures over the last five years, driven by internet penetration and government support.
Yet, startups face a fragmented payment environment: local schemes like CMI dominate domestic card processing, while international solutions can incur steep fees and prolonged settlement times. At the same time, Morocco is rolling out mandatory electronic invoicing pilot in October 2025, full rollout early 2026 to enhance tax compliance.
A Merchant of Record (MoR) solves these issues by acting as the official seller of record, handling payments, taxes, invoicing, and compliance on behalf of the SaaS provider.
Source: Adobe Stock
The Moroccan Digital Ecosystem and Global Ambitions
Growth of SaaS and Digital Startups
Under the Digital Morocco 2030 initiative, the government has earmarked MAD 11 billion (USD 1.1 billion) in investments through 2026 to accelerate digital skills training, create jobs, and support tech adoption.
As a result, local SaaS firms serving finance, education, and logistics have multiplied, contributing to an overall Moroccan ICT market projected to grow at a 6.21 % CAGR through 2030.
Meanwhile, a wave of homegrown digital wallets and mobile-payment apps such as Jibi by Wafacash, Filahi Pay, MT CASH, CIH MOBILE, Orange et moi Maroc, and inwi Money has begun to modernize how Moroccans pay and get paid.
Barriers to Cross-Border Payments
Stripe is not officially supported in Morocco, so local businesses must set up a U.S.-based LLC, obtain an EIN, and maintain a U.S. bank account and address if they want to process payments via Stripe.
Apple Pay and Google Pay only became available in Morocco in 2023, with CIH Bank among the first issuers. So, mobile wallet usage for digital business is still in its infancy.
PayPal also operates under restrictions. Moroccan users can only transact in dirhams and are limited to sending or receiving funds domestically, which hampers true cross-border commerce.
These constraints, combined with high gateway fees, multi-day settlements, and opaque compliance rules, slow international revenue collection and strain cash flow
New Tax Rules
Morocco’s Directorate General of Taxes (DGI) launched e-invoicing proposals in October 2024, with a voluntary pilot in October 2025 and phased mandatory rollout in early 2026 under Article 145-9 of the 2018 Finance Law.
This reform aims to improve transparency and combat tax evasion, but adds layers of real-time invoice reporting and electronic validation for SaaS vendors
Merchant of Record
What Is a Merchant of Record (MoR)?
A Merchant of Record is the legal seller on transactions, responsible for processing payments, calculating and remitting VAT, issuing compliant invoices, handling refunds, and managing fraud and chargebacks. In effect, the MoR assumes all financial and regulatory obligations across multiple jurisdictions on behalf of the software provider.
MoR vs. Payment Gateway/Processor
Unlike a payment gateway or processor, which merely routes transaction data and deposits funds into a merchant account. A MoR carries liability for tax remittance, customer disputes, and compliance with local regulations. This distinction is crucial for Moroccan businesses aiming to sell globally without building in-house financial infrastructure.
Why Moroccan SaaS Companies Need an MoR
Simplified Global Payments
An MoR like Dodo Payments can help startups gain instant access to international cards, e-wallets, and local schemes through a single integration, no need for multiple merchant accounts. This unified approach cuts setup time and eliminates the need to negotiate with each payment provider.
Tax and Compliance Assurance
An MoR automates VAT calculation and remittance aligned with Morocco’s upcoming e-invoicing mandate, generating compliant electronic invoices and handling real-time reporting to the DGI. This reduces the risk of penalties and frees internal teams from tracking evolving tax rules.
Fraud Protection and Currency Management
Built-in fraud screening tools and multi-currency settlement engines in MoR platforms help Moroccan SaaS firms minimize chargebacks and manage foreign exchange fluctuations, critical for protecting margins when selling across multiple regions
Key Features to Look for in an MoR for Morocco
Dodo Payments offers a Merchant of Record solution for Moroccan SaaS companies and digital product sellers. It is designed to integrate with existing systems, providing support for multiple currencies, local payment methods, and region-specific tax requirements.
Key Features
Accept payments from over 150 countries and multiple currencies, making global transactions smooth and reliable.
Expand internationally without the need to set up a foreign business entity, saving time and reducing overhead.
Automate tax processes by calculating, filing, and remitting taxes such as VAT and GST, cutting the risk of non-compliance.
Enforce international data protection standards and AML protocols to secure every transaction and boost trust.
Streamline operations with faster, simpler payouts and fewer blocked transactions for efficient global operations.
Outsource complex tasks like chargeback handling, fraud prevention, and dispute resolution to reduce operational burdens.
Maintain a steady cash flow and consistent revenue by effectively managing disputes and enhancing customer confidence.
Implementing an MoR Solution
Technical Integration
Most MoR providers offer JavaScript checkout widgets and server-to-server APIs. Typical setup involves embedding a checkout SDK, configuring webhooks for payment events, and mapping local tax jurisdictions in your dashboard
Onboarding and KYC
Expect to submit company registration documents, director IDs, and proof of bank account. Approval timelines vary, but are often completed within 1–2 weeks for Moroccan entities
Pricing Models and Cost Considerations
MoR pricing typically follows a revenue-share model (e.g., 2–5% per transaction) or a flat-fee plus percentage. Compare total cost against in-house build and third-party gateway fees to ensure margin preservation
Conclusion
For Moroccan SaaS and digital companies, tapping into international markets offers tremendous growth potential, but success hinges on more than just acquiring new customers.
You need seamless payment processing, adherence to both local and global regulations (including Morocco’s e-invoicing and VAT rules), and healthy profit margins that withstand foreign-exchange fluctuations.
Team up with an experienced MoR like Dodo Payments so you can delegate cross-border transactions, tax remittance, fraud protection, and regulatory compliance to specialists.
