U.S. Agency for International Development (USAID) Mission Director Amy Tohill-Stull announced the launch of the Digital Financial Services Pilot Activity on December 14th in Ramallah. This initiative, with a budget of $1 million, will be implemented over the next year by the E-Trade Alliance, a coalition of U.S. companies led by The Palladium Group.
The Palestinian digital economy remains less developed compared to other regions despite recent advancements in its digital ecosystem. In 2021, fewer than 10 percent of internet users in the West Bank and Gaza engaged in online purchasing due to inadequate consumer protections and limited digital payment options.
The new activity aims to achieve two main objectives: creating partnerships to facilitate digital payment services for small and medium enterprises (SMEs), and improving financial literacy as well as the adoption of digital financial services among Palestinian SMEs and underserved populations, including women, youth, the unbanked, and the underbanked.
"The future of financial services is digital, and the scaling up of digital services and financial literacy will unlock the potential of the Palestinian digital economy," stated Amy Tohill-Stull, USAID/West Bank and Gaza Mission Director.
Over the past year, USAID has invested $150 million to support Palestinians in building resilient communities and fostering inclusive development. The funding for this project is part of a broader economic growth initiative that includes USAID's Small and Medium Enterprise Assistance for Recovery and Transition Activity. Further details about USAID’s efforts can be found on their website: https://www.usaid.gov/west-bank-and-gaza/economic-recovery-and-growth