Lebanon secures $150M for digitalization as India eyes UPI fees

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Lebanon and the World Bank have signed a loan agreement to support the country’s digital transformation drive. Meanwhile, India has opened the door to charging merchant fees for using the government-backed Unified Payments Interface (UPI).

Lebanon enters $150 million loan deal with World Bank to support digitalization

On August 10, the World Bank and Lebanon agreed to a $150 million loan for the country’s “Digital Acceleration Project,” the National reported.

The project’s goal is to enable easier access to government services for Lebanese people, many of whom still rely on paper trails to deal with public transactions.

The loan, the World Bank said, will “improve the delivery of high-impact public services through digital transformation of the public sector” and would be achieved “through enhanced digital platforms and data capabilities.”

The deal was signed with the presence of the World Bank’s new regional director, Dalia Khalifa, and Lebanese Minister of Finance Yassine Jaber. In January, the World Bank green-lighted the $150 million loan.

Since the start of 2026, Lebanon has been caught in renewed war between Israel and Hezbollah, and has been dealing with the challenges of the ongoing economic crisis that began in 2019. The country’s infrastructure, including telecommunications, internet services, and essential utilities, urgently needs investment and improvement. Last year, the World Bank estimated the cost of Lebanon’s reconstruction at $11 billion.

In 2022, Lebanon reached a staff-level agreement with the International Monetary Fund (IMF) that would provide the country with access to a $3 billion in funding. However, Lebanon’s government failed to achieve the reforms required to access the fund at the time. In July, local media reported that Prime Minister Nawaf Salam reiterated Lebanon’s commitment to reaching an agreement with the IMF on a program.

Last month, the IMF announced that its involvement with Lebanon centers on two main tracks: one that aims to address the economic impact of the ongoing war, and the second relates to the program requested by Lebanon. The IMF emphasized that the discussion of the program focuses on reforms in the banking sector and the government’s medium-term fiscal strategy.

Earlier this year, the World Bank said that the project would include the “provision of secure and efficient infrastructure for hosting government data” and investments in the country’s cybersecurity.

India plans to charge merchant fees when using UPI

Meanwhile, India has passed legislation by the parliament’s upper house on August 10, paving the way to amend its zero-fee model for the government-backed Unified Payments Interface (UPI).

The UPI system allows payments to be sent across participating apps and banks in India, and according to the IMF, it is “the largest real-time payment system in the world by volume,” processing more transactions than Visa (NASDAQ: V) and Mastercard (NASDAQ: MA).

According to reports, the bill amendment does not impose fees on users but provides a legal framework for banks and payment processors to enable businesses to charge for UPI transactions.

Finance Minister Nirmala Sitharaman told the upper house that the bill would not “impose any tax or transaction charge on UPI users,” clarifying that it would apply only to large merchants for transactions above a certain threshold.

“It will support the banks and fintech to invest more on infrastructure, innovation and security,” Sitharaman said, following the regulation’s passage by the lower house.

“The enabling provision that we are bringing in today does not impose any tax or transaction charge,” she added.

Currently, most UPI transactions are small-ticket transfers below 2,000 rupees ($20.98), industry figures said. India’s UPI has been used since its launch in 2016, with transaction volumes rising fivefold to 241 billion payments worth $3.3 trillion over the past five years.

The UPI is India’s real-time payment system. It was developed together with the National Payments Corporation of India (NPCI)—a government sector that handles the country’s retail and settlement systems—and the country’s central bank, the Reserve Bank of India (RBI). Since its launch, the payment system has been processing over 19 billion transactions per month and has gained traction with over 200 apps and most banks in the market.

In June, India expanded the use of UPI to Cambodia. Through the collaboration, Indian users can use Cambodia’s Bakong KHQR—the country’s national QR code—at over 4.5 million merchant outlets, following the partnership between NPCI International Payments Limited (NIPL), the international arm of the NPCI, and ACLEDA Bank Plc.

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