Al-Salhi reviews the experience of leading digital transformation in Palestine under exceptional circumstances

Ramallah - Ofoq News - In light of the difficult economic conditions that the Palestinians are experiencing, the increasing restrictions on movement and movements, and the crises of cash liquidity and the circulation of the shekel, electronic payment is advancing as one of the solutions that helps citizens complete their daily transactions, and gives the business sector additional tools to continue despite the exceptional circumstances.

In this context, the General Manager of the Palestinian Payment Services Company, Nader Al-Salhi, reviewed the reality of electronic payment in Palestine, the challenges facing its spread, and its role in dealing with crises, in addition to the most prominent projects that the company is working to develop during the next stage.

Al-Salhi discussed the experience of building a national infrastructure for electronic payments, and the importance of digital services in alleviating the burdens of movement on citizens, especially in light of the closures, barriers, and difficulty in reaching institutions and service provision centers. He also highlighted the Gaza Strip's experience in the rapid transition towards electronic payment, and future directions for developing payment, installment and e-commerce systems.

Electronic payment is a necessity in light of the difficulty of transportation

Al-Salhi said that the restrictions imposed on movement have become one of the most prominent daily challenges facing the Palestinians, noting that their effects are not limited to economic activity, but extend to the lives of employees, students, and families, in light of the difficulties they face in reaching workplaces and schools and completing their transactions.

He added that the Palestinians continue to adapt to these circumstances despite the daily burdens, stressing that steadfastness has become a necessity in light of the limited options available to citizens.

He explained that the Palestinian Payment Services Company, wholly owned by the Palestine Monetary Authority, is responsible for managing and operating national payment systems, pointing out that work on establishing a national infrastructure for electronic payment began before the war on the Gaza Strip, which allowed for the provision of practical solutions when difficulties in movement and access to services increased.

He explained that the goal of these systems is to enable citizens to complete their transactions remotely, instead of having to move between cities, stand in queues, or search for service provision points.

Al-Salhi stressed that electronic payment is no longer just an additional option or a technical luxury, but rather has become a basic need imposed by the circumstances in which Palestinians live, explaining that digital services contribute to saving time and effort and facilitating access to daily transactions.

“E-Sadad”... more than a thousand electronic services

Al-Salhi spoke about the E-SADAD platform, which allows citizens to pay bills, fees, and financial obligations electronically through banking applications and electronic wallets.

He pointed out that the platform provides more than a thousand services, including paying electricity, water and gas bills, paying university tuition, in addition to other services that meet the needs of individuals and institutions.

He explained that the company has also expanded its work on providing electronic government services, in cooperation with relevant authorities, with the aim of enabling citizens to complete their transactions without the need to visit institutions directly.

He gave an example of the electricity charging service, in which previously a citizen needed to leave his home and go to a store or point of sale to complete it, while he can now carry out the process electronically around the clock, even in times when it is difficult to move around or reach points of sale.

He added that paying university tuition and some other obligations has become easier thanks to these services, noting that the cooperation of banks, payment companies, and electronic wallet service providers has contributed to disseminating these tools and informing citizens of their capabilities.

He stressed the importance of increasing awareness of the available services, considering that part of the challenge is that many citizens do not know all the transactions they can complete electronically.

Building trust and protecting citizens’ data

Regarding the hesitation of some citizens to use electronic payment, Al-Salhi acknowledged that trust concerns still exist, especially when a notification confirming the completion of the payment process or deducting the amount from the account is delayed.

He explained that trust is not built with an immediate decision, but rather is formed gradually through repeated use, clarity of procedures, and ensuring the integrity of transactions and data protection.

He pointed out that the Palestine Monetary Authority’s ownership of the company and the national systems that manage it represents an important element in enhancing public confidence, explaining that the presence of a unified national system under the supervision of an official monetary authority differs from relying on multiple commercial systems that may impose additional costs on users.

He added that the company conducted visits and studies of experiments in neighboring Arab countries before developing national systems, with the aim of benefiting from previous experiences and avoiding problems that may arise from the multiplicity of platforms and varying costs and procedures.

Al-Salhi stressed that the services provided by the E-SADAD platform through banking applications and electronic wallets are available to citizens for free, stressing that not imposing fees on the user represents a basic principle in encouraging the transition from cash dealing to electronic payment.

He pointed out that the citizen's success in carrying out the first electronic transaction in an easy and safe manner often encourages him to use the service in other transactions, such as paying bills, university tuition, and renewing vehicle licenses.

Payment of university tuition fees without interest... and new services under development

Al-Salhi touched on the challenges faced by some citizens as a result of the transition to electronic payment, especially in sectors that are accustomed to providing installments or payment by checks.

He said that the company took this issue into account from the beginning of developing the system, and worked with banks to provide solutions that suit the needs of citizens, especially students and their families.

He revealed that a Palestinian bank launched an experimental service that allows some payments to be made in installments via the E-SADAD platform using credit cards, with other banks working to launch similar services during the coming period.

He explained that the service allows payments in approximately three installments without interest, according to the experimental mechanism, with the aim of facilitating the payment of university tuition and other obligations that may constitute a financial burden on families in one lump sum.

He pointed out that the possibilities and duration of installments may vary in the future according to the banks’ policies and the products they offer, stressing that this step aims to encourage citizens to use electronic payment methods without giving up the flexibility they need in managing their financial obligations.

Al-Salhi also announced that the company is working on developing a direct debit system, which is scheduled to be launched, according to the announced plan, at the beginning of 2027.

He explained that the system aims to provide an electronic alternative to checks in some transactions, including the sectors of real estate, cars, and the purchase of electrical appliances, by allowing payments to be scheduled over several months according to the agreement of the parties.

He explained that the system will allow the merchant to send an electronic request to the relevant bank to verify the process and obtain a response regarding approval or rejection, while providing an electronic document for the transaction in accordance with the legal mechanism that is being developed.

He pointed out that the project comes in response to the difficulties faced by citizens and merchants in using checks, in light of the tightening of some banking procedures, and the need to find alternative, easier means of organizing payments.

The Gaza experience...digital transformation in the face of the liquidity crisis

Al-Salhi reviewed the Gaza Strip experience, describing it as an exceptional experience in the rapid transition from cash dealing to the use of electronic payment tools.

He explained that the lack of cash liquidity and the difficulty of bringing cash into the sector imposed the need for alternatives that help citizens receive money and aid from abroad, then use them to purchase basic needs and pay for services.

He pointed out that electronic wallets, bank accounts, and digital payment tools contributed to the continuation of a number of economic transactions, despite the harsh conditions the sector is experiencing.

He added that citizens are now using mobile phones to pay in small markets, means of transportation, and other daily transactions, in light of the scarcity of cash and the difficulty of obtaining it.

He pointed out that, in his estimation, electronic payment helped users avoid some of the burdens associated with cash circulation, including the high commissions that some citizens were forced to pay to obtain liquidity.

He stressed that the importance of the experience is not limited to the technical aspect, but rather lies in its ability to help society adapt to an exceptional crisis, noting that he is presenting this experience in conferences outside Palestine as an example of the speed of adaptation to circumstances that impose a change in patterns of financial dealing.

He added that benefiting from the Palestinian experience may extend to other communities facing difficulties in movement or access to services, high transportation costs, or challenges related to the continuity of service provision in emergency circumstances.

Four currencies in one system

Al-Salhi addressed the peculiarity of the Palestinian financial system, in light of the absence of a circulating Palestinian national currency, and the reliance on several currencies in economic transactions.

He explained that the systems managed by the company deal with four currencies, considering that multiple currencies represent an additional technical and operational challenge compared to systems that focus on a single national currency.

He pointed out that the issue of the Palestinian currency is linked to complex political and economic conditions and existing arrangements, and cannot be dealt with as a technical issue separate from the political and economic reality.

In this context, he spoke about the possibility of developing stable digital cash tools in the future, explaining that building the electronic payment infrastructure and providing technical competencies may create the necessary ground for such projects.

He stressed that moving to any formula of this type requires official and international approvals and arrangements, in addition to procedures that fall within the jurisdiction of the Palestine Monetary Authority.

Al-Salhi did not specify a date for launching a Palestinian digital currency, explaining that the idea is related to regulatory requirements and approvals that have not yet been decided.

“Sadad Gate” to regulate e-commerce and consumer protection

In the context of developing digital services, Al-Salhi reviewed the electronic payment portal “SADAD Gate,” which aims to enable online stores and institutions to collect payments through their websites and applications.

He explained that many online sales operations in Palestine still depend on cash payment upon delivery, which limits the development of e-commerce and increases the need for more organized and secure mechanisms.

He added that the portal allows the user to pay for his purchases directly from his bank account, by choosing the bank and entering the required data, instead of relying exclusively on cash payment or bank cards.

He pointed out that the service is available through some applications, and that work is continuing with electronic stores to expand its use and connect more platforms to it.

He stated that the company is cooperating with the Ministry of National Economy in this field, and seeks to deal with stores registered with the Ministry, in a way that enhances the regulation of e-commerce and reduces chaos or practices that may harm consumers.

He stressed that regulating electronic payment operations is not only about facilitating purchases, but also includes enhancing the consumer’s ability to know who he is dealing with, accessing clear information about the store, and reducing problems that may arise when delivering packages or requesting a refund.

He considered that linking payment gateways to regulated stores represents an important step towards building a more trustworthy e-commerce environment that protects the consumer and supports committed commercial institutions.

Electronic payment for the delivery sector.. Reducing the risks of carrying money

Al-Salhi discussed the risks that workers in the order delivery sector may be exposed to, as they are forced to carry cash that they collect from customers or transfer to the relevant authorities.

He pointed out that the company discussed the needs of the delivery sector, and offered electronic solutions as part of its efforts to develop services that suit the daily challenges facing citizens and companies.

He explained that electronic payment services can help reduce reliance on cash in sales and delivery operations, thus reducing the need to transfer cash amounts and alleviating some of the risks associated with that.

He stressed that the development of these services comes within a broader trend to regulate e-commerce and provide safer and more convenient means of payment for merchants, consumers, and workers in the sector.

Payment via QR code instead of POS devices

Al-Salhi revealed that the company is working with banks to prepare a campaign to encourage merchants and shop owners to use payment via the quick response code (QR), as a quick means of electronic payment that may reduce the need to use point-of-sale devices in some transactions.

He explained that the payment mechanism is based on the user opening his banking application, scanning the code at the merchant, and then completing the payment directly, which facilitates the transaction and reduces its steps.

He pointed out that this technology could be useful for multiple sectors, including taxis, buses and small stores, due to its ease of use and speed of completing transactions.

He added that point-of-sale devices have witnessed an increasing spread in the Palestinian market, and have reached a greater number of stores and small shops, including some areas, camps, and remote areas.

He attributed this expansion to the efforts of the company, the Monetary Authority and the banks to encourage the dissemination and expansion of electronic payment tools, stressing that developing payment methods is not limited to creating systems, but rather requires providing them in the places where citizens need them.

How does a citizen who does not have a bank account benefit?

Al-Salhi touched on the challenges facing citizens who do not have bank accounts or payment cards, and who may find themselves unable to complete some transactions that require electronic payment.

He explained the importance of addressing this gap, noting that the company is working to develop solutions that allow meeting the needs of these groups, so that the absence of a bank account does not become an obstacle to accessing services.

Al-Salhi did not reveal the details of the new mechanism, explaining that work is continuing to develop an alternative solution, which will be announced at a later time.

This issue becomes particularly important with the expansion of electronic payment. The success of digital transformation requires that it not be limited to bank account and card holders, but also include groups with less access to financial services.

Between the necessity of change and the fears of citizens

Al-Salhi stressed that the switch to electronic payment should not be understood as an additional burden on the citizen, but rather as a means to facilitate his life in light of the restrictions imposed on movement and the difficulty of accessing services.

He said that relying on cash transactions alone is not consistent with the technological transformations the world is witnessing, noting that the use of digital tools has become part of daily life in many countries.

He added that Palestinians face circumstances that make them more in need of electronic payment alternatives, especially in light of the closure of roads and checkpoints and the difficulty of moving between cities, in addition to the risks that those carrying cash may be exposed to while on the move.

On the other hand, the success of this transformation remains linked to providing easy, safe and free services, expanding their reach, addressing trust issues, and finding practical alternatives for citizens who do not have bank accounts.

It also requires continuing awareness of user rights and mechanisms for objecting to transactions, and clarifying procedures for recovering funds and resolving errors, in a way that enhances confidence in the digital system.

Digital infrastructure is a lever for economic resilience

Al-Salhi stressed that work on developing electronic payment methods is not limited to replacing cash with technology, but rather aims to build a digital financial system that facilitates the lives of citizens and the business sector, increases the efficiency of transactions and supports the movement of the economy.

He pointed out that the company is working on additional projects to keep pace with global developments in the field of financial technology, expressing his hope that these solutions will contribute to alleviating the burdens of daily life and enhancing the ability of Palestinians to adapt to exceptional circumstances.

He stressed that the electronic payment infrastructure developed in Palestine represents an achievement in light of the existing circumstances, stressing that economic and political challenges do not negate the need to continue development and investment in digital solutions.

But the digital transformation experience, important as it is, does not eliminate the broader economic challenges facing the Palestinians, nor does it compensate for the need for economic stability, freedom of movement, availability of liquidity, and access to basic services. Rather, it represents a support tool that helps citizens and institutions continue their activities in a very difficult environment.

This concludes that electronic payment has become part of the Palestinian economic adaptation tools, and that the next stage will require expanding the scope of services, developing installment, direct debit and e-commerce systems, while ensuring the inclusion of groups that still face difficulties in accessing digital financial services.