Algeria’s digital economy is experiencing rapid growth, as mobile payment transactions surged significantly during the first quarter of 2024, according to recent data from the Groupement d’Intérêt Économique de la Monétique (GIE Monétique).
Mobile Payment Transactions on the Rise
Mobile payments saw a remarkable increase, with over 12.5 million transactions recorded between January and March 2024, up from 7.6 million in the same period last year, reflecting a 71% rise in transaction volume. The total value of mobile payments exceeded 9.3 billion DZD (Algerian Dinar), up from 5.5 billion DZD in Q1 2023.
Also, mobile money transfers between clients of the same financial institution reached 7.2 million transactions, with a value surpassing 106 billion DZD. This represents a 140% rise in transaction volume and a 187% increase in value year-over-year.
New Interoperability of Mobile Payments
A major development contributing to this surge is the interoperability of mobile payment platforms, allowing transactions between customers of different banks or financial institutions. This change follows years of limited mobile payment options, previously offered by only two banks and Algérie Poste. Now, users can conduct transactions more freely across various banking platforms, expanding the accessibility and convenience of mobile payments.
Internet and Point-of-Sale Payments Gain Momentum
Internet payments also witnessed steady growth in Q1 2024, with the number of online merchants increasing to 510, up from 337 in Q1 2023. As a result, 3.2 million transactions were processed online, an 18% increase from the same period last year, with a total transaction value of 9.3 billion DZD (Algerian Dinar), marking a 63% rise. These payments span various sectors including telecommunications, transport, insurance, and bill payments.
Payments via electronic payment terminals (TPE) also saw similar gains, with over 1.3 million transactions, representing a 55% increase. The value of these transactions reached over 10 billion DZD, with an additional 4,726 terminals deployed, bringing the total to 53,756 TPEs.
ATM Withdrawals and Government Support
Automated Teller Machine (ATM) withdrawals remain significant, exceeding 45 million transactions in Q1 2024, with a total value of over 860 billion DZD (Algerian Dinar). The number of ATMs has grown to 3,868, with 155 new machines installed over the past year.
Algeria’s Minister of Knowledge Economy, Startups, and Micro-enterprises, Mahdi Oualid, highlighted the country’s fast-paced growth in mobile payments, crediting the government’s policies and the newly implemented monetary and banking laws aimed at fostering electronic payment solutions and advancing financial inclusion.
Outlook for Digital Payment Growth
The surge in mobile and electronic payments, backed by enhanced digital infrastructure, interoperability, and supportive government policies, signals a broader shift in Algeria’s digital financial services sector. This trend is expected to further accelerate, integrating digital payments into everyday life and contributing to the nation’s economic modernization efforts.
