Listen to the article
Electronic wallets are gaining popularity. The offer seems to have taken off in Lebanon, with demand cautiously following suit as the average citizen becomes more familiar with this financial product.
The Central Bank of Lebanon (BDL) has approved 13 electronic wallets to date, while other applications are under review.
The electronic wallet, also known as e-wallet or digital wallet, is a virtual wallet for conducting online transactions such as purchases, payments or money transfers. It is a digital tool that allows the electronic storing of financial or banking information, credit cards, money or cryptocurrencies (digital currency). In other words, the electronic wallet offers a convenient and secure method to manage money electronically.
Circulars 69 and 63
The BDL has empowered banks and money transfer companies to provide electronic wallet services according to the conditions set by Circulars 69 and 63 and their subsequent amendments. One of the most important conditions is the prior approval by the Central Bank of the technical mechanisms of the software applications used to manage the electronic wallet.
Under the circular provisions, the providers’ own funds for the electronic wallet service must amount to at least ten billion Lebanese pounds at all times. If these entities incur losses, they must replenish their capital within six months, failing which their operating license may be revoked.
Middle to Upper Class
The BDL has set a ceiling for the funds available in the electronic wallet, where the total per person at any given time must not exceed 150 million Lebanese pounds (LBP), or USD 3,000. If the client is a merchant or engaged in a liberal profession, the ceiling for funds available in the wallet is four billion LBP, or USD 5,000. Furthermore, in line with international standards, the total funds sent by each client should not exceed 15 million LBP per day and 150 million LBP per month for transactions conducted in LBP. In case transactions are made in foreign currencies, the limit is three hundred USD per day and 3,000 USD per month.
Multi-platforms
Many e-wallets are multi-platform, meaning that you can access your electronic wallet from different devices through dedicated applications, secure websites or even platform-specific software solutions.
In a conversation with This Is Beirut, André Gholam, CEO of Logica, a company specialized in fintech and computer security, emphasized that “to access your e-wallet from different devices, it’s important that it be compatible with various platforms and offer secure synchronization between devices to ensure consistency in information and transactions.”
Gholam also pointed out that smartphones can be traceable and, in some cases, subject to decryption. The ease with which this can happen depends on various factors, including security measures in place, how the device is used and the physical protection it receives.
In this context, he recommends choosing reputable and reliable e-wallets that offer robust security measures.
It is important to note that the security of transactions and data privacy depends not only on the measures taken by e-wallet providers but also on the security practices adopted by users, such as protecting their devices from malware, using strong passwords and regularly monitoring transactions to detect any suspicious activity.
The shift to e-payment is inevitable despite the multidimensional crisis that has rocked the country since October 2019. The surge in online purchases and the devaluation of the Lebanese pound, requiring the carrying of bundles of cash for everyday commercial transactions, are reasons that have put the Lebanese back on the path of financial inclusion.
