Gaza faces 'cash famine' as residents struggle with unreliable online payments

Gaza is grappling with a severe cash shortage, which locals call a “cash famine,” making daily commercial transactions extremely difficult and increasingly dependent on unstable online payment methods.

Since the war began in October 2023, Israel has strictly limited the entry of cash into Gaza, while military operations have destroyed much of the territory's banking infrastructure. According to the Palestinian Monetary Authority, Israeli strikes have demolished more than 50 bank branches and dozens of ATMs across Gaza. Large amounts of cash also remain trapped inside the vaults of damaged or destroyed banks.

Even after the October 2025 ceasefire allowed banks to reopen some branches, services remain largely limited to administrative operations, without providing new liquidity. Palestinians in Gaza report difficulties opening new accounts for those using replacement identity documents issued after 2023, leaving thousands unable to access the digital banking system amid the growing reliance on digital payments.

Firas Zaqloul, a resident of the Sheikh Radwan neighborhood in Gaza City, said his home was destroyed during the war, burying his ID card under the rubble. Without proper documentation, he cannot open a bank account or e-wallet, leaving him dependent on increasingly scarce, worn-out banknotes that many sellers refuse to accept. “I suffer every day when I want to buy anything,” Zaqloul said. “Sellers reject old money, so I have to find other ways to pay.”

Israa Najm, a 23-year-old student, described waiting two hours in a clothing store while her mother transferred money to the seller. The ID card she obtained during the war is not accepted by banks, leaving her unable to use her bank account. “Every time I want to go to the market, I have to call my mother to transfer money. Sometimes she has no signal, and we both struggle just to pay. There's a crisis of trust between buyer and seller,” Najm said.

Najwa Kahil, 45, shopping at the Abu Jabara commercial center, found it difficult to use payment apps because her phone is too old to support them. She has to rely on her young son's help to transfer funds to sellers. “Sometimes I feel like I'm begging when I go out shopping, as if I'm 100 years old instead of 45. Everything is a struggle, from buying food and cooking to getting water,” Kahil said.

Mohammed Awida, 22, a chestnut seller, noted that shopping now requires careful preparation. “If I plan to buy food for my mother on Friday, I have to charge my phone the day before. I also have to make sure I can use every electronic payment method, because each seller might require a different one,” Awida said. Internet outages also complicate matters, as sellers are wary that buyers may not have actually paid.

The collapse of Gaza's telecommunications infrastructure, combined with the shift toward digital payments, is reshaping where people conduct transactions. Shops offering free internet access have become informal trading hubs, attracting sellers and customers who need stable connections to complete deals.

Abdul Hadi Abu Shaaban, 14, sells bread outside the al-Qadi bakery in western Gaza City, which provides free Wi-Fi. He does not own a mobile phone and relies on buyers to transfer money to his father's account, then asks them to show the transaction receipt. “I don't accept cash because it's all old and torn; even if I had change, I couldn't give it back to buyers,” Abu Shaaban said.