Gaza Cash Shortage Forces Residents to Rely on Online Payments Amid Banking Crisis
Gaza is facing a severe shortage of usable cash, forcing residents and businesses to increasingly depend on electronic payments despite unreliable internet and damaged banking infrastructure.
Since the war began in 2023, restrictions on cash entering Gaza and extensive damage to banks and ATMs have created what residents describe as a “cash famine.” The Palestine Monetary Authority says more than 50 bank branches and dozens of cash machines have been destroyed.
Many Palestinians also struggle to access digital banking because replacement identity documents issued during the war are reportedly not accepted by some banks. This has left people dependent on relatives to transfer money to shopkeepers.
Internet outages make digital payments even more difficult, while worn-out banknotes are often rejected by merchants. Some shops now provide free Wi-Fi so customers can complete transfers, turning them into informal payment centres.
For many Gazans, buying basic necessities has become a complicated process requiring phones, internet access and multiple payment methods.
