Libya’s Electronic Payments Surge to LYD 764.9 Billion as Digital Economy Expands
Electronic payment transactions in Libya reached LYD 764.9 billion in the first eight months of 2026, giving the Central Bank of Libya a clear sign that digital payments are becoming a larger part of economic activity.
The Central Bank said transactions processed through various electronic payment systems between January 1 and August 31 reached approximately LYD 764.9 billion. The figure came during a meeting between Governor Naji Issa, commercial banks and Moamalat Company to discuss electronic payments, cash liquidity and access to foreign currency.
The number is large enough to make electronic payments more than a banking convenience. They are becoming part of the infrastructure through which businesses and consumers move money.
A shift away from cash
Libya has long relied heavily on cash, while businesses and consumers have faced problems accessing physical currency through commercial banks. The rapid growth of electronic transactions offers an alternative that can reduce the need to handle cash for everyday payments.
The trend was already visible earlier in the year. By the end of July, the Central Bank reported around LYD 643 billion in electronic transactions. Instant payment services LYPay and OnePay accounted for LYD 252 billion, while mobile banking applications processed LYD 209 billion. Card payments through point-of-sale terminals reached LYD 33 billion.
That growth matters for more than consumers. Wider digital payment use can give banks a larger role in formal economic activity and make transactions easier to track. For businesses, faster electronic payments can also reduce the time and cost involved in handling physical cash.
The expansion also creates a foundation for Libya’s financial technology sector. The Central Bank has been working with banks and payment companies to improve the systems and infrastructure needed to support wider digital transactions.
Digital payments could reshape Libya’s economy
The economic impact will depend on whether electronic payments continue expanding beyond the existing banking customer base.
More digital transactions can help small businesses accept payments without relying entirely on cash. They can also make it easier for consumers to pay bills, transfer money and conduct everyday transactions through banking applications, cards and instant payment services.
There is another potential benefit for the wider economy: greater visibility over financial flows. A larger share of transactions moving through formal banking channels could give banks and policymakers better information about economic activity.
But the LYD 764.9 billion figure should not be treated as equivalent to LYD 764.9 billion of new economic output. The Central Bank describes it as the gross value of transactions processed across different payment systems, meaning the number measures payment activity rather than GDP or total consumer spending.
That distinction is important when assessing what the figure says about Libya’s economy.
The Central Bank is also still dealing with the other side of the transition. Its latest meeting focused on both electronic payments and ensuring commercial banks have enough cash to meet customers’ needs. That suggests Libya is moving toward a mixed system rather than becoming a cashless economy overnight.
For the Central Bank, the next challenge is therefore not simply increasing transaction volumes. It is making the digital system reliable enough for businesses and consumers to depend on every day.
If that happens, electronic payments could become one of the more important pieces of Libya’s broader effort to modernize its banking sector and bring more economic activity into formal financial channels.
