680,000 e-wallets
issued by 15 institutions

Monthly transactions worth around $300 million

The number of digital wallets (e-wallets) in use doubled between the beginning of the year and July, reaching 679,400, according to Central Bank (BDL) data.

By the end of July, 18 electronic money transfer companies were licensed to provide digital wallet services. This figure includes one company that has not yet launched operations and two still in the testing phase. In comparison, 12 companies were offering e-wallet services in the first quarter of the year.

Around 90 percent of transaction volume is in fresh dollars, but usage in lira is increasing. In March, monthly dollar deposits into wallets (top-ups) totaled $140 million. Withdrawals reached $126 million, bringing the value of total transactions to $266 million. In the same month, top-ups in lira amounted to LL1.2 trillion ($13.5 million), and withdrawals of LL1.1 trillion ($12.3 million).

The Central Bank said that the collapse of the banking sector, coupled with deposit restrictions and eroded public confidence, has severely constrained access to formal financial services. This has led individuals and businesses to turn increasingly to alternative intermediaries, particularly institutions offering electronic operations and digital wallets, which now provide services such as cash transfers, bill payments, and collections through extensive physical and digital networks. It said that electronic operations institutions have played a key role in advancing financial inclusion, particularly in rural areas.

Last May, BDL issued new regulations tightening the restrictions imposed on e-wallet providers in order to face the systemic risks that could result from the growing use of digital wallets. Key requirements include, among other things, stricter licensing conditions, necessity to start operations within six months after getting the license, mandatory business plans, maintaining wallet balances in fully funded escrow accounts with 100 percent reserve coverage at banks, and stricter limits on wallet transactions and balances. E-wallet providers must also have insurance coverage for fraud and cyber-risk and should commit to annual compliance reporting. “These steps aim to strengthen transparency, regulatory oversight, and financial stability in the expanding e-wallet sector,” the Central Bank said.