In a significant move to enhance the financial ecosystem, the Central Bank of Libya (CBL) has announced a substantial reduction in point-of-sale (POS) e-payment charges administered by its state National Switch operator, Moamalat Financial Services Company. These charges have been cut to 1 and 1.5 percent from the previous 3.75 percent, marking a decisive step in making electronic transactions more affordable across various sectors. This reduction follows extensive discussions spearheaded by CBL Governor Naji Issa, aimed at lessening financial burdens on essential services such as health, medicine, and food by an impressive 73 percent to 1 percent, and reducing fees for other sectors by 60 percent to 1.5 percent. This initiative underscores CBL’s broader goals to streamline the cost of electronic service transactions and facilitate economic participation through digital means.
Simplifying Financial Procedures for Commercial Dealers
The recent meeting also focused on simplifying the procedures for granting POS systems to commercial dealers, ensuring that more businesses can easily adopt this technology. By easing these procedures, the CBL aims to encourage wider use of POS systems, which can significantly enhance the efficiency of payment processing and reduce cash handling. This development is anticipated to benefit not only large enterprises but also small and medium-sized businesses, which are often impeded by cumbersome protocols and high costs. The introduction of a complimentary instant payment service as part of this initiative further underscores the CBL’s commitment to financial inclusion, making seamless and rapid transactions a reality for a broader segment of Libya’s commercial landscape. By periodically re-evaluating these rates, the CBL ensures that the cost of electronic transactions remains competitive and aligned with the overarching objective of economic development.
Collaboration with Private E-Payment Providers
The CBL’s recent integration of private sector e-payment provider Tadawul Tech’s network with Moamalat’s marks a significant step in enhancing Libya’s e-payment ecosystem. This strategic move facilitates interchangeable use for customers, making financial transactions more convenient and fostering interoperability. It aligns with CBL’s ongoing initiatives to expand the use of ATMs and e-payment systems in Libyan businesses, aiming to create a more inclusive and digitally advanced financial environment. These efforts resonate with the global trend of adopting electronic payments to boost efficiency and accessibility. By promoting partnerships between state and private entities, the CBL is laying the groundwork for sustainable growth in Libya’s financial sector, ensuring digital payment solutions are accessible, reliable, and widely accepted nationwide.
Additionally, the CBL’s recent actions promise to revolutionize Libya’s financial landscape by making electronic transactions more affordable for everyone. Significant reductions in POS e-payment fees are set to stimulate economic activities and support essential services such as healthcare and food. The collaboration with private payment providers solidifies Libya’s commitment to leveraging technology for financial inclusion. These strategies suggest a positive direction toward a more integrated and efficient financial system, providing a solid foundation for future economic growth and stability in the region.
