Towards a cashless economy in Algeria

The year 2026 promises to be a turning point for Algeria, which is firmly committed to moving towards an economy that is less dependent on cash. The Ministry of Trade recently issued an eight-day ultimatum to retailers get electronic payment terminals (EPTs) or face penalties. This move marks a clear break with the series of postponements seen in the past. It signals the start of a much more demanding period in Algeria's strategy to reduce the amount of cash in circulation.

A fixed fine of DZD 50,000 

In practical terms, upon receipt of the official notice, professionals have eight days to contact their bank and obtain a payment terminal. If the installation cannot be completed within this time frame, they must at least provide proof of their application, duly validated by the financial institution concerned. Failure to do so will result in a fixed fine of 50,000 DA, as well as other administrative measures provided for by the legislation in force. It should be noted that this initiative aligns directly with the provisions of Article 111 of the 2018 Finance Act, which has made the use of electronic means of payment mandatory for commercial transactions for several years now.

Until now, the authorities had shown a certain degree of leniency towards successive delays. However, the situation changed radically at the end of December 2025, when the Bank of Algeria banned cash deposits into business accounts. Admittedly, the clarifications provided on 31 December 2025 slightly mitigated this initial strictness, allowing banks to continue accepting cash deposits, provided that they were justified and decreased. A one-month transition period was even granted to economic actors, particularly distributors and producers whose supply chains remain heavily dependent on cash. Despite this, the ultimatum issued by the Ministry of Trade reflects an undeniable sense of urgency: the shift to a digital economy can no longer be postponed.

The figures speak for themselves: at the end of April 2025, Algeria had barely 80,000 payment terminals for more than two million merchants. Between January and July 2025, a total of 5.2 million electronic transactions were recorded, with a total amount of 47.2 billion Algerian dinars. Faced with this persistent shortage of equipment, the public authorities are also exploring alternative avenues. Mobile payment via QR code, for example, is emerging as a strategic solution. Less expensive and more adaptable than physical terminals, this technology could enable many small retailers to easily comply with the new requirements without having to invest in traditional payment terminals.

Reasons for using electronic payment in Algeria

It is also important to note that since the cash ban came into force at the end of December, there has been a real influx of traders to banks, a sign that this pressure is beginning to have an effect. The objectives are clear: to reduce the circulation of cash, curb the informal economy, increase fiscal transparency and bring the country into the digital age for good. With this ultimatum, the government has sent a clear message: the period of persuasion is over. Coercion is now the main driver of this profound change.

At the heart of this dynamic is the national strategy "Digital Algeria 2030", launched in 2025, which aims to increase the contribution of digital technology to 20% of GDP, implement more than 500 transformation projects and digitise 75% of public services. The widespread adoption of electronic payments is therefore an essential pillar of this vision. Algeria is now at a real crossroads.

This digital transition, long hampered by a culture of resistance to cash and a lack of infrastructure, now seems to be on an irreversible path. Although significant challenges remain, the combination of restrictive regulations, technological innovation, and strong political will could well mark the real start of Algeria's economic modernization as early as 2026.