The Algerian Commission monétaire et bancaire has granted Djezzy, a telecom company, authorization to launch its mobile payment subsidiary, Djezzy Payment Services. This marks the first time a company has been authorized to provide mobile payment services in Algeria. According to the Banque d'Algérie, this authorization is a significant step towards diversifying payment methods and promoting financial inclusion.
The authorization was granted in accordance with the law 23-09, which aims to modernize the monetary and banking system. The law created new financial intermediaries, including Prestataires de Services de Paiement (PSP), to provide payment services. Djezzy Payment Services will operate as a PSP, enabling users to make transactions using their mobile phones.
The Banque d'Algérie stated that the authorization is subject to certain conditions, including the submission of an application for approval within 12 months of the authorization date. The bank aims to accelerate the digitalization of the economy, reduce the use of cash in commercial transactions, and prevent money laundering through this move.
The introduction of mobile payment services in Algeria is expected to increase financial inclusion and access to banking services. Many Algerians currently lack access to traditional banking services, and mobile payment services can help bridge this gap. Djezzy, a leading telecom company in Algeria, is well-positioned to provide these services to its customers.
The authorization of Djezzy Payment Services is part of a broader effort by the Algerian government to modernize the country's economy. The government has been investing in digital infrastructure and promoting the use of technology to improve economic efficiency. Mobile payment services are expected to play a key role in this effort.
The Banque d'Algérie has been working to create an enabling environment for mobile payment services. The bank has established regulations and guidelines for PSPs, including requirements for authorization, approval, and operation. These regulations aim to ensure the security and stability of the financial system.
The launch of Djezzy Payment Services is expected to be followed by other mobile payment services in Algeria. The market is likely to see increased competition and innovation in the payment services sector, which will benefit consumers and businesses alike. The Algerian government will continue to play a key role in shaping the regulatory environment for mobile payment services.
Key points
- Algeria grants first mobile payment authorization to Djezzy
- Mobile payment services aim to increase financial inclusion and access to banking services
- Authorization is subject to certain conditions, including submission of application for approval within 12 months
