AFS Partners with Libyan Islamic Bank to Upgrade Libya’s Digital Payments

Libya’s push towards a more modern payments ecosystem has taken another step forward, as Arab Financial Services (AFS) and Libyan Islamic Bank (LIB) announce a strategic partnership aimed at upgrading the country’s digital payments infrastructure.

The agreement will see Libyan Islamic Bank tap into AFS’s Visa card issuance and processing capabilities, with the goal of speeding up onboarding and offering customers smoother day-to-day banking experiences. In simple terms, this means faster card services, more reliable processing behind the scenes, and a system built to handle growth rather than buckle under it.

Security is also front and centre. The partnership includes tokenisation and encryption technologies designed to protect transactions and customer data across digital channels. For a market that is steadily warming to cashless payments but still cautious about digital risks, that detail feels particularly spot on.

Dr Samer Soliman, Group CEO of AFS, described the move as a proud moment for the partnership, noting that the project shifts from blueprint to reality. By using AFS’s digital framework, he said, Libyan Islamic Bank can streamline operations and provide the fast, intuitive services customers now expect.

Adel Kshad, General Manager of Libyan Islamic Bank, pointed to the country’s broader journey towards a connected, cashless economy. He said the collaboration would allow the bank to deliver secure and efficient card services aligned with international standards, while supporting Libya’s digital transformation and economic development goals. That’s a tall order, but also very much in line with where regional banking is heading.

From what we’ve seen at Arageek covering fintech across MENA, modernising legacy payment systems is often a bit of a faff. It takes capital, patience and, frankly, nerves of steel. I still remember speaking to a founder in North Africa who told me that upgrading core banking tech felt like “changing the engine of a plane mid-flight”, risky, but neccessary. Against that backdrop, LIB’s move looks pragmatic rather than flashy.

AFS, founded in 1984, is owned by 36 banks and financial institutions and serves more than 60 clients across over 20 countries in the Middle East and Africa. The company is regulated by the Central Bank of Bahrain and the Central Bank of Egypt, and licensed by the Central Bank of the UAE. Its portfolio stretches from merchant acquiring and digital payroll to open banking infrastructure and digital wallets, so this partnership in Libya sits comfortably within its broader regional expansion.

Libyan Islamic Bank, established in 2017 with authorised capital that has grown from 250 million to 500 million Libyan dinars, positions itself as the country’s first bank fully specialised in Islamic Sharia-compliant services. It operates branches across major Libyan cities and has rolled out a range of products for both individual and corporate clients. In 2023, it secured its first international credit rating and obtained ISO 9001:2015 and ISO 27001 certifications, underlining its focus on quality management and information security.

On the flip side, infrastructure alone won’t transform user behaviour overnight. Customers need trust, usability and clear benefits to ditch cash. That said, I reckon building robust rails first, secure processing, scalable platforms, proper compliance, is the only sensible way forward. Everything else is just window dressing.

For Libya, where financial modernisation has faced its share of hurdles, this partnership signals intent. Not loud promises, but practical groundwork. And sometimes, in fintech, that steady approach is what really counts.

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