This research investigates the effectiveness of mobile money in addressing liquidity challenges in Morocco through an empirical analysis utilizing an Autoregressive Distributed Lag model. Examining monthly data spanning from 2020 to 2022, we analyze both short- and long-term dynamics. Our findings reveal that mobile money provides short-term relief by mitigating immediate liquidity demand, in accordance with transaction convenience theory. However, its long-term impact diminishes, indicating limitations as a standalone solution. Surprisingly, we observe that higher levels of cash circulation also correlate with increased long-term liquidity demand, potentially driven by precautionary motives. We emphasize the necessity for further research integrating behavioral perspectives. We recommend a multifaceted strategy for policymakers, which includes promoting financial literacy to maximize the immediate advantages of mobile money, understanding cash preferences to foster collaboration between both systems, and conducting further research to fully understand the long-term impact of mobile money on Morocco’s financial system.