Thousands of years before coins were minted and banknotes were printed, people traded goods directly through barter: dates for livestock, or oil for barley. But barter was inefficient and exhausting because it depended on a “double coincidence of wants”—each party had to want exactly what the other had at the same time. As societies expanded, cities emerged, and trade grew across regions, people needed a shared “language of value” to make transactions easier and prices clearer.
That’s how early forms of money appeared: goods with an agreed value such as salt, hides, grain, and metals. Over time, money evolved into gold and silver measured by weight, and later into standardized minted coins stamped by the state to guarantee weight and purity.
Centuries later, paper money emerged to support trade and reduce the burden of transporting metals. At its core, it was a promise—backed by a state—that a note represented an equivalent value in gold or silver. As economies became more complex and trade required faster circulation, financial systems continued to evolve. Today, money is no longer only paper and metal—it is increasingly digital value, managed through banks and apps.
In other words, money didn’t appear in its modern form overnight. It evolved gradually to serve a basic human need: exchanging value with trust and ease.
The Evolution of Money Leads to Digital Payments: A Necessary Response to Libya’s Cash Shortage
When we look at the history of money, we see that each evolution was driven by necessity: barter, then commodity money (salt, hides), then metals, then standardized coins, then banknotes, and eventually modern banking and transfers. Money didn’t change for fashion—it adapted to a new reality that demanded speed, trust, and smoother exchange.
From this perspective, digital payments in Libya are not a luxury. They are a natural step in how money evolves within society. Libya today faces a daily, practical challenge: cash shortages. Money exists in accounts, but it doesn’t easily convert into physical cash. Trade slows down because banknotes become scarce—and sometimes concentrated in the hands of a few. That reality created the need for electronic payments to play a role similar to what banknotes once did: make value accessible, reduce pressure on withdrawals, and keep money circulating inside the formal economy instead of freezing in homes, storage, or queues.
Most importantly, digital payments don’t only help the market—they help citizens too. When transactions become digital, it becomes easier to track spending, save consistently, and build a culture of financial planning rather than spending only when cash is available.
That’s why linking the history of money to Libya’s current reality leads to one conclusion: just as humanity moved from barter to coins and from coins to banknotes, Libya now needs to move from heavy dependence on paper cash to a broader digital payment ecosystem—reducing reliance on banknotes and building a more efficient, trusted, and stable economy.
Why Digital Payments Became a Real Trend in Libya
The shift toward digital payments signals that the market is moving faster than cash can support. The Central Bank of Libya reported that electronic payments turnover reached LYD 328 billion in 2025 up to 30 November, and November alone recorded LYD 43.8 billion—a major jump showing real expansion in digital usage.
Later figures confirmed that total electronic payments turnover in 2025 reached LYD 389 billion, up from LYD 136 billion in 2024—a strong year-on-year surge.
Beyond turnover, the infrastructure is expanding quickly. The number of activated bank cards reached 5,636,383 cards by 31 October 2025, and the number of payment devices used in shops rose to 141,449 devices by the same date, compared with 76,356 in 2024—roughly doubling.
In terms of real usage, the number of card payments in shops (merchant payment transactions) reached 194,790,143 transactions from 1 January to end-November 2025, with a total value of LYD 26.2 billion. Meanwhile, cash withdrawals via ATMs recorded 19,361,346 transactions, with a total value of LYD 10.1 billion. These indicators reflect a gradual shift away from reliance on physical cash and toward electronic tools.*
*Note: “Total electronic payments turnover” includes transfers, instant payments, bill payments, and more, while payments in shops represent only one component of that broader total.
A Pivotal Step: Instant QR Payments—What Does It Mean for Citizens and the Market?
One of the most notable decisions toward the end of 2025 was the Central Bank’s directive for banks to roll out instant merchant payments via mobile phones using QR codes, with a clear implementation timeline.
Why does this matter?
Because it closes the gap between having payment devices available and enabling citizens to use them easily—especially given common misuse of bank cards, such as reading PINs aloud. QR-based payments make the process simpler, safer for consumers, and easier to scale—particularly for small shops and everyday services.
In business terms: less friction, higher adoption.
How Digital Payments Benefit the Libyan Economy
Digital payments can deliver tangible gains to Libya’s economy. They reduce pressure on cash availability by lowering reliance on daily withdrawals, and they speed up money circulation: merchants receive payments faster, pay suppliers sooner, and trade and services move more efficiently. Digital channels also gradually reduce the size of the informal economy because transactions are recorded within formal systems—improving transparency, limiting leakage and manipulation, and supporting faster, cleaner collection of fees and government payments.
They also reduce the costs of managing cash: printing, transporting, guarding, counting, sorting, maintaining ATMs, and replacing damaged notes—while lowering theft and loss risks associated with carrying large amounts of cash. Digital payments strengthen financial inclusion by enabling wider segments of society—especially those in remote areas and small business owners—to pay and transfer funds more easily, improving the overall business environment and supporting e-commerce, subscriptions, and digital services.
Finally, expanding digital transactions generates better data on spending and money movement, helping institutions manage liquidity and bottlenecks more effectively—while giving individuals clearer budgets and more structured savings habits that can become a starting point for investing.
From Paying to Saving, and From Saving to Investing
This is where the story matters most for trading and investing audiences:
Digital payments aren’t the final goal—they are the foundation for healthier financial behavior:
When you pay through an app, you can see and categorize your spending
When you can see your spending, saving becomes a practical decision—not a wish
When saving becomes a monthly habit, you can begin your investing journey
What you should know before starting your investing journey
Conclusion: Digital Payments in Libya Are Not a Luxury—They’re an Economic Transformation
Libya is moving—slowly but clearly—toward an economy that relies less on cash, as many countries have done. The numbers show real growth in electronic payments during 2025, and regulatory steps like QR-based instant payments signal that a roadmap is gradually becoming reality.
The key question remains: will we use this shift to build disciplined saving, stronger financial planning, and a path toward investing—or will we only change how we pay while keeping the same financial habits?
Start your investing journey smarter with the Boursa app.
Reviewed and Edited by: Dr. Abdulmagid Bendalla
