Algeria’s central bank and mobile operators have finalized plans to launch DZ MOB PAY, a national mobile payment system, in January 2025. The platform will let micro-entrepreneurs, street vendors and freelancers accept card-free payments through basic mobile phones, cutting cash dependence and bringing millions of unbanked sellers into the formal economy.
For founders running small shops, home-based ateliers or e-commerce side hustles in Algiers, Oran or Constantine, this move removes the single biggest barrier to expansion: customers who still carry little or no cash. Mobile money adoption in Algeria lags behind peers in Morocco and Tunisia, where fintech startups already onboard 30 % to 40 % of small retailers. DZ MOB PAY aims to halve the share of cash transactions within two years by offering zero-fee merchant accounts to businesses with annual turnover under 5 million Algerian dinars.
Behind the initiative is Governor Rostane Khalfi of the Bank of Algeria, who told APS this week that the system will use USSD codes, so it works on any GSM handset. Telecommunications regulator ARPT has already tested interoperability between Mobilis, Djezzy and Ooredoo, ensuring customers of all three carriers can pay each other. APS reports that the central bank will cap merchant fees at 0.5 % per transaction, well below the 2 % to 3 % charged by informal money changers who currently handle most “electronic” payments.
Micro-retailers stand to gain the most. According to a 2023 World Bank survey of 1,200 Algerian micro-enterprises, 68 % of daily sales are still in cash because POS terminals cost 8,000–12,000 dinars to install and require a minimum monthly turnover of 200,000 dinars. With DZ MOB PAY, a tea-stall owner in Bab El Oued can receive payments by simply showing a QR code printed on cardboard. UNDP’s digital adviser in Algiers, Samira Belkacem, estimates that 400,000 micro-businesses could go digital by 2027 once the platform reaches 50 % coverage nationwide.
The push dovetails with the IMF’s recent praise for Algeria’s anti-money-laundering framework—rated “largely compliant” for the first time in a decade. In practice, this means banks must verify every DZ MOB PAY merchant, giving authorities granular transaction data and reducing the risk of cash-based tax evasion.
For the Algerian diaspora, the timing is opportune. Remittance inflows reached $2.1 billion in 2024, according to Banque d’Algérie data, but 70 % still arrives in cash handed to relatives. With DZ MOB PAY, overseas-based senders can top up wallets directly from UK, France or Canada using international corridors now being negotiated with Wise and Remitly. A pilot between London and Algiers starts in December 2025, with a 1 % fee compared to 5 %–7 % via Western Union.
Early adopters are already testing the system. In a recent report by We Are Tech, a micro-baker in Hussein Dey reported a 25 % rise in orders after adding a DZ MOB PAY QR code to Instagram. Another pilot in Oran showed street photographers earning 30 % more by letting tourists pay via mobile instead of bartering in dinars.
Still, challenges remain. Mobile penetration is 142 %—higher than the population—yet 3G coverage drops below 60 % in parts of Tizi Ouzou and Béjaïa. Regulator ARPT promises to expand 4G towers by mid-2026. Security is another concern: in October 2025, British police dismantled a phone-theft ring that smuggled handsets between London and Algiers 200 times in two years, highlighting the need for biometric verification on DZ MOB PAY wallets.
Entrepreneurs should prepare now. The central bank will open merchant registration on 15 December 2025; those who sign up first get priority KYC checks. Basic QR stickers and marketing kits will be free, but business founders should budget 5,000–8,000 dinars for a ruggedised Android tablet to display payment screens in high-traffic areas.
Key takeaway for entrepreneurs
DZ MOB PAY launches in January 2025 with zero merchant fees for businesses under 5 million dinars turnover. Micro-retailers gain instant digital sales tools, while diaspora-linked remittances can shift to lower-cost mobile wallets by late 2025. Registration opens 15 December 2025 via the Bank of Algeria’s portal.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.