Five Algerian Banks to Launch Mobile Payment Services in October
The Directorate of the Electronic Payment Consortium, Asia Ben Chabla Kiroche, announced to the Algerian Press Agency that five banks are preparing to launch a mobile electronic payment service using Quick Response (QR) code technology starting next October.
Advantages of Mobile Payment Services
Ben Chabla Kiroche explained that starting from October 2024, customers of these banks will be able to conduct payment transactions by scanning QR codes with their mobile phones. She highlighted the importance of this modern technology for its benefits, such as speed and efficiency, as it simplifies the process of electronic payments and reduces the reliance on traditional cash or bank cards. She added that QR code technology is a practical and secure option, allowing customers to complete their financial transactions easily without additional complications.
Interoperability and the Role of the Switch Mobile Platform
In the initial phase of the project, the service will be limited to customers within the same bank, meaning transactions will only be possible internally. However, by June 2024, the service will expand to include interoperability between various banks, thanks to the “Switch Mobile” platform. This advanced platform will enable customers to make payments between different banks, facilitating transactions between users regardless of their banking provider. This is a significant step toward enhancing financial inclusion and broadening the use of digital payments on a larger scale.
Growing Adoption of Mobile Payment Services
Currently, three financial institutions in Algeria offer mobile payment services: the National Bank of Algeria (BNA), Al Salam Bank-Algeria, and Algeria Post. With the addition of five new banks, the number of institutions providing this type of electronic payment service will increase to eight. This expansion is expected to boost the adoption of digital payments and reduce the dependence on traditional cash transactions, aligning with the government’s goals to promote a digital economy.
Future Plans for Sector Development
Ben Chabla Kiroche noted that “GIE Monétique” plans to continue its efforts to drive digital transformation in Algeria’s financial sector. This includes launching several new projects in 2025 aimed at developing and strengthening the country’s digital payment infrastructure. Among these projects are plans to enhance digital payment systems, expand the acceptance of mobile payments across more businesses and stores nationwide, and introduce new technologies aimed at increasing the security and speed of electronic transactions, such as implementing Near Field Communication (NFC) technology and other innovative solutions.
Benefits of QR Code Technology
The mobile payment service relies on QR code scanning, a globally popular technology due to its ease of use and speed. This system eliminates the need for bank cards or additional terminal devices; customers only need to scan the merchant’s QR code via their bank’s mobile application to pay for their purchases or bills instantly. This technology helps reduce waiting times in queues and enhances customer convenience by offering a smooth and secure payment experience, encouraging more people to adopt this modern payment method.
Launch of the Service in Algeria
It is worth noting that the mobile payment service was first introduced in Algeria in 2022 as part of efforts by the government and financial institutions to boost digital transformation and encourage innovation in the financial sector. Since then, the service has seen growing popularity and widespread adoption among users, thanks to its numerous advantages and ease of use. With the continuous expansion of participating institutions and improvements in the infrastructure, this technology is expected to become an integral part of daily life in Algeria, enhancing the efficiency and effectiveness of the country’s financial system.