E-Payments As a Pathway to Growth: Empowering the West Bank and Gaza Through Digital Inclusion

Access to efficient financial services is essential for personal economic growth and a country’s economic development. Even more so during times of crisis when digital payments can be a lifeline. In the West Bank and Gaza, significant strides were being made to modernize payment systems and enhance financial infrastructure. However, since October 7th, 2023, the financial system and its infrastructure has suffered significant disruptions and damages. It becomes increasingly imperative to develop the digital financial services and build upon the significant advancements facilitated by the World Bank over the years.

The World Bank and United Nations Interim Damage Assessment updated July 2024 figures estimate $14.2 million in damages to the financial sector in Gaza between October and the end of January 2024. This includes the damage or destruction of 93 percent of bank branches in Gaza, as well as 88 percent of micro finance institutions, most money changers, and 88 percent of insurance companies.