Monaco’s National Council members are rallying to preserve the Carlo payment app, a cashback-driven platform credited with invigorating local commerce. The push comes as the government contemplates scaling back its financial support due to the app’s substantial operational costs.
Since its launch in 2019, Carlo has become a popular tool for encouraging spending in Monaco, offering users a five percent cashback on purchases. During the pandemic, the government bolstered its funding for the app, viewing it as a critical economic lifeline. However, deliberations over the 2025 budget have cast uncertainty over its future funding.
Corinne Bertani, a vocal advocate for local businesses, underscored Carlo’s significance during the National Council’s December 19 session. “Carlo is a vital engine for our economy,” she asserted. “It has fostered a renewed habit of spending locally and stimulated purchases by employees working in Monaco. While it does involve costs for the State, it also generates VAT and bolsters the local economy.”
Under the current model, Carlo’s 8.6 percent platform fee is predominantly covered by the government at 7.6 percent, with merchants contributing one percent. Proposed changes for 2025 would increase merchants’ contributions to 3.6 percent, raising concerns about the potential fallout for business participation. Bertani cautioned, “Raising merchants’ fees beyond standard bank card charges could discourage them from using the platform, undermining its success.”
Other council members echoed these concerns. Mikaël Palmaro highlighted Carlo’s role in stabilising the economy, remarking, “Carlo has proven its worth, keeping the economy afloat during challenging times.” Roland Mouflard emphasised the app’s relevance for businesses navigating rising rents and operational costs, adding, “Carlo restores competitiveness to our retailers.”
Pierre-André Chiappori, Monaco’s Minister of Finance and Economy, acknowledged Carlo’s value but emphasised fiscal prudence. He proposed a spending cap of 1,500 euros per user per month as a potential solution to curb costs, estimating savings of three million euros annually.
Chiappori also raised the issue of distinguishing between VAT generated directly by Carlo and VAT that would have existed without the app, calling it “a challenging but essential calculation.” He reiterated the need to strike a balance between supporting the app and managing public expenditure.
