Gaza forced to use unreliable online payments amid ‘cash famine’

What the report says

Gaza’s economy is increasingly relying on fragile digital transfers as a shortage of usable cash disrupts everyday buying and selling, according to Al Jazeera. The report, published from Gaza City on 28 August 2026, says Israeli restrictions on cash entry and war damage to financial infrastructure have left the territory facing what locals call a “cash famine.” Banking services have been weakened by the destruction of more than 50 bank branches and dozens of ATMs, while large amounts of cash were reportedly trapped in damaged bank vaults.

Al Jazeera describes how residents now face obstacles even when they technically have money. Some people cannot open bank accounts or electronic wallets because identity documents issued during the war are not accepted by banks. Others depend on relatives to send transfers, only to run into problems with poor internet service, old phones, or merchants who will not accept worn banknotes. The article highlights that many transactions now require proof of payment on a phone before goods are handed over.

The shift has also changed commercial life in Gaza City, where shops offering free Wi-Fi have become informal payment hubs. Vendors and customers gather there to complete transfers, often through mobile banking apps or SMS confirmations. The piece suggests the wider significance is not just inconvenience but a deeper breakdown in trust, liquidity, and access to basic goods in a territory already strained by war and limited banking operations.