Electronic Payment in Libya: Reality, Challenges, and the Role of Academic and Community Institutions in Supporting Digital Transformation

Abstract

This study examines the reality of electronic payment systems in Libya, the challenges facing their expansion, and the role of academic and community institutions in supporting digital transformation and enhancing financial inclusion. The study is based on the central assumption that the success of electronic payment systems is not solely linked to the development of technical and banking infrastructure, but also depends on building an integrated institutional and knowledge-based environment in which universities, research centers, and civil society organizations contribute to spreading digital culture and strengthening public trust in electronic financial services. Through the descriptive approach adopted by the researcher, the study demonstrates that Libya has witnessed noticeable progress in electronic payment services in recent years, particularly with the launch of instant payment services, the expansion of digital wallets, and the increase in points of sale, bank cards, and digital financial applications.

On the other hand, the study concludes that the electronic payment system in Libya still faces several structural challenges, most notably weak digital infrastructure, recurring electricity and internet outages, low public trust in electronic services, limited digital financial literacy, the continued dominance of the cash economy, and the need to further develop legal and regulatory frameworks related to cybersecurity, data protection, and financial technology regulation.

The study concludes that the future of electronic payment systems in Libya depends on the ability of the state and various institutions to adopt an integrated strategic vision based on developing digital infrastructure, strengthening cooperation among institutions, updating the legal environment, expanding financial inclusion, and supporting innovation in the field of financial technology.