Rumors are circulating in Monaco businesses about a gradual withdrawal of the Monegasque government from the operation of the Carlo application. However, nothing has yet been done.
« I do not think that the Monegasque State has the vocation to subsidize up to 5% of the private consumption of Monegasques over an indefinite horizon. » This sentence from Pierre-André Chiappori, ministerial advisor for the economy and finance, was enough to put doubt in the minds of Monegasque traders. These few words are taken from a speech given during the budget session at the National Council, in October 2024. In its viewfinder, the Carlo application, launched in 2019 and officially a government service provider since December 2020.
Covid as a starting point for collaboration
Launched before the appearance of Covid-19, then supported by the government during the pandemic, this application rewards purchases made in affiliated Monegasque businesses: 5% “cash back” [remboursement partiel lié à un achat » — NDLR] on every purchase, that’s the promise of this app. On each purchase, 5% goes into the customer’s pockets, 3% helps pay for the application’s banking system, and 2% finances the sponsors, that is to say a person who allowed the registration of the application. a new user.
If the government took responsibility for this 10% during the pandemic as a “exceptional measure to support the local economy”a first decision saw the State’s share reduced to 7.6% in 2022. At the start of 2024, another step: the abolition of the sponsorship system took place. “Given the growing number of users, this represented too high a sum for the government, which asked us to change this mode of operation. From now on, we only give 5 euros to sponsors upon registration”explains Antoine Bahri, co-founder of Carlo and general director of this application. The share is currently divided as follows: 1% paid by traders, and 7.6% covered by the State. However, Pierre-André Chiappori implies support at 5%.
Indeed, rumors are circulating that the State would like, once again, to reduce its stake in Carlo. A rumor that quickly made the rounds of various shops across the country: “A lot of people are worried. Some are already announcing the end of the application, others are considering alternatives. admits Marianne Tartaglino, co-manager of the Bébé Tendresse store, located in the Fontvieille shopping mall. A trader affiliated with Carlo since the early days, she does not regret her choice: “We don’t have a loyalty program, and that’s what Carlo brought us. The application also brought us new customers. » She qualifies, all the same: “Honestly, there was no visible impact on turnover, but it allowed us to maintain activity. » For her, going from 1% to 3% of participation share is acceptable: “It’s still little compared to what it brings us. I would wonder if the rate ever went to 5%. »
“We must not forget that at the origin of Carlo, the traders paid the entire 10% of the requested costs. It was only with Covid that the government took on these costs. It was an exceptional economic recovery measure, in a very specific context. In Bordeaux and Aix-en-Provence, where we are now established, merchants pay the entire 10%”
Antoine Bahri. Co-founder and CEO of Carlo
75,000 users, 650 affiliated merchants
Building on its hegemony in the principality, the Carlo application has grown year after year. Today, this platform brings together 75,000 users, 650 merchants, and 50 companies for a total flow of 100 million euros in 2023 in Monaco. The hub of purchases made in Monaco in local shops, Carlo has penetrated into the heart of the State. Indeed, since December 2020, civil servants have received their bonus in vouchers to be used via this platform in affiliated businesses.
In 2023, 10,000 Carlo gift vouchers were used by Monegasque civil servants for a total value of 6 million euros. “It’s a real “boost” in the local economy,” says Antoine Bahri. Before our presence, the State distributed gift vouchers which were not necessarily spent in local businesses. We can in particular think of Fnac or Amazon. » Win-win, then? Not entirely, according to the State, and in particular for Pierre-André Chiappori, who is seeking to save money, he indicated before the National Council: “There is a danger for any temporary measure, taken for very strict economic reasons, to become permanent and become an acquired right which will last until the end of time. »
A little trip back in time, to 2020. The Monegasque state is seeking to revive the country’s economy, which has been suffering since the first wave of Covid. The Carlo alternative resonates like a sweet promise in the ears of the government, which is getting started. Little risk, little money at stake, and an application that benefits traders and residents: the investment seems peaceful. The problem is that since then, this application has grown, and the amounts invested yesterday are no longer the same. For Antoine Bahri, the government is within its rights. Far from questioning the rumors of a drop in state participation, he explains them: “We regularly have new negotiations with the government on its share of participation. This must be taken in context: it is a new government, with a new National Council. It’s normal that discussions about the budget are up for grabs. »
“These increases in participation should not demotivate traders, because it can happen quickly. »
Antoine Bahri. Co-founder and CEO of Carlo
What impact on VAT?
Percentages at stake therefore, and a situation which will remain favorable for Monegasque traders in any case: “We must not forget that at the origin of Carlo, the traders paid the entire 10% of the requested costs. It was only with Covid that the government took on these costs. It was an exceptional economic recovery measure, in a very specific context. In Bordeaux and Aix-en-Provence, where we are now established, merchants pay the entire 10%. » Especially since this is not the first time that the Monegasque government has reduced its participation.
“It’s part of the game. We’re growing: 75% of commuter or Monegasque consumers now use our platform. The rules change, and the amounts spent by the State, too. » But, for Antoine Bahri, a risk lies in this policy: “These increases in participation should not demotivate traders, because it can happen quickly. These changes should not cause affiliate marketers to leave us. The more the supply of businesses is reduced, the fewer consumers there are on the platform. And therefore, the less spending is made in local shops. All of this can reduce the VAT that all those in-app purchases currently generate. »
The question is therefore this: what is the amount of VAT from purchases made via Carlo which then go into the pockets of the Monegasque State, each year? According to figures provided by Carlo, 59% of users are commuters. They spent 30 million euros via the application in 2023. “A large part of these purchases generated VAT for the State of Monaco. If Carlo stops tomorrow, it is likely that this money will be spent outside the principality again. » To support his remarks, Antoine Bahri highlights an internal investigation carried out in recent months.
According to these figures, to the question: “Does the 5% cashback encourage you to shop in Monaco compared to other modes of consumption (online, shopping centers, other cities)”94.3% of users answered “yes”. Although this survey was carried out on 3,000 daily users, it nonetheless rings true for the co-founder of Carlo: “It’s about investing in local commerce, which is a sector in great difficulty. There is a real change in consumption habits, and city centers are being neglected. We provided an alternative to try to keep this type of business afloat, and, five years later, we can say that it worked. We have completed the mission, and the fact that the government is participating is extraordinary. We must now think about the adaptability of this system in the more distant future, so that all parties can agree on it. »
If the rumors of a reduction in State participation are, for the moment, only rumors, we will have to wait for the coming months to know the real direction that will be taken in relation to this collaboration. The next renewal of the contract between Carlo and the Monegasque State is set for 1is avril 2025.
