Algeria: Significant Surge in Mobile Payments in Q1 2024

he use of electronic payment methods, especially through mobile devices, is experiencing a substantial increase in Algeria, reflecting the country’s growing digital economy.

Mobile Payment Transactions Soar

According to data from the Groupement d’Intérêt Économique de la Monétique (GIE Monétique), mobile payment operations surged in the first quarter of 2024. Over 12.5 million transactions were recorded, a significant rise from 7.6 million during the same period in 2023, marking a 71% increase.

In the first three months of this year, the value of mobile payment transactions exceeded 9.3 billion DZD, compared to 5.5 billion DZD in the same period last year. Additionally, mobile money transfers between clients of the same financial institution reached over 7.2 million transactions, with a value surpassing 106 billion DZD, representing a 140% increase in the number of transactions and a 187% increase in value year-over-year.

Enhanced Interoperability

Mobile payments, previously limited to transactions between clients of the same bank or financial institution, have recently become interoperable. This development follows years of restricted mobile payment solutions offered by only two banks and Algérie Poste. With interoperability, transactions can now be conducted even if the payer and recipient are clients of different banks, broadening the scope and convenience of mobile payments.

Internet and Point-of-Sale Payments on the Rise

Internet payments also saw an upward trend in the first quarter of 2024. The number of online merchants grew to 510, compared to 337 in the first quarter of the previous year. Consequently, the number of transactions through this payment method reached 3.2 million, an 18% increase, with a total value of 9.3 billion DZD, marking a 63% rise compared to the same period last year. These internet payments span sectors such as telecommunications, transport, insurance, bills, administrative services, goods sales, and sports and leisure activities.

Growth in Point-of-Sale Transactions

Payments via electronic payment terminals (TPE) also saw significant growth, with over 1.3 million transactions recorded in the first quarter of this year, representing a 55% increase. The value of these transactions exceeded 10 billion DZD, a 49% rise compared to the same period last year. This growth is linked to an increase in the number of terminals, now totaling 53,756, with 4,726 new TPEs added in the first three months of 2024.

Increase in ATM Withdrawals

ATM withdrawals exceeded 45 million transactions, with a total value of over 860 billion DZD in the first quarter of 2024. The number of ATMs reached 3,868, an increase of 155 machines over the past year.

Government Support for Digital Payments

Recently, Mahdi Oualid, the Minister of Knowledge Economy, Startups, and Micro-enterprises, highlighted Algeria’s capacity for rapidly developing mobile payments. He noted the recent growth in the number of fintech and e-commerce actors, facilitated by government policies through the monetary and banking law aimed at promoting electronic payments and achieving financial inclusion.

The significant surge in mobile payments and other electronic payment methods in Algeria reflects a broader trend towards digital financial services, driven by increased accessibility, enhanced interoperability, and supportive government policies. This growth is expected to continue, further integrating digital payments into everyday transactions and supporting the nation’s economic development.