In the bustling District 5 of Kabul, along the dusty stretch of Poli Hawayee street, Sayed Ahmad has spent the last six years earning a living out of a small grocery store. For most of those years, his business was governed by hard cash. But now a new digital financial system is transforming the way he does business and in turn slowly but surely modernizing the Afghanistan marketplace.
The hidden costs of a cash-only marketplace
The Sayed Malang Aka Zada Grocery Store operated in an environment where cash was king. His customers came from all walks of life laborers, shopkeepers, and families seeking daily necessities. It was common practice to store and transport currency in simple plastic bags, a method that was not very secure.
Yet, handling cash presented numerous challenges. Carrying cash in plastic bags could make a merchant an easy target for theft. In a cash only marketplace, the risk of being a victim of counterfeit money was also an issue that represented a drain on a small shop’s thin margins. Paper currency in Afghanistan like elsewhere suffers from wear and tear. Torn and damaged banknotes are often rejected by suppliers, banks, and customers.
A farmer fills out a loan repayment form using the HesabPay digital wallet. Photo: HesabPay.
A partnership for digital resilience
Then earlier this year change arrived at Ahmad’s grocery store in the form of the Afghanistan Digital Prosperity Project (ADPP), being implemented by the United Nations Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP).
UNDP leads the strategy and funding for the initiative aimed at supporting Afghanistan’s economic recovery by moving beyond emergency aid toward building long-term resilience, especially for vulnerable groups like women-led businesses. UNCDF handles the technical side, building digital tools like mobile payment systems and secure apps. Together, they ensure that people in even the most remote areas can safely receive and manage the money they need for their livelihoods and businesses.
Breaking the cycle of insecurity
Ahmad was introduced to the digital wallet by a representative from HesabPay. It is a digital payment platform used in Afghanistan that enables users to conduct financial transactions electronically. While Ahmad was initially hesitant, in a market where people were still used to keeping cash in plastic bags, the transition, he says, proved to be “simple and easy.”
Ahmad’s story reflects a growing shift in local markets in Afghanistan, one where digital payments are slowly gaining trust, helping small businesses work more securely and efficiently. In turn this shift is modernizing the Afghanistan marketplace the digital wallet isn't just a new way to pay, it is a bridge that leaps over decades of missing infrastructure to a more secure and inclusive financial future.
The transition to digital tools
Hussain Ali started his business with almost nothing. He says: “I had no cash at all. My father sold his own smartphone for 14,000 Afghani so we could buy vegetables for the shop.” Later, his uncle supported him with a 140,000 Afghani loan, but business was still very tough. After just a few months, the shop almost collapsed.
To survive, he started selling items on credit to customers and focused on quality, even if profits were minor. But even as he struggled to get his business going, things got worse. Hussain was robbed and his money was stolen three times while carrying it to buy vegetables and groceries. “Every time my money was stolen, my heart dropped. I felt helpless.”
When he heard about the advantages and disadvantages of digital payment, he realized it was a way to save him business.” With help from a customer who worked at HesabPay, Hussain finally opened a digital wallet account. He says, “My customer trained me. After that, I could do every transaction myself.” Later, he even received a POS machine and QR codes from HesabPay.
Now, Hussain uses his HesabPay digital wallet for electricity bills, top-ups, transfers, and more. He helps not only himself but also his neighbors and customers. “I pay electricity bills for my neighbors. I send credit to everyone. It takes less than 10 seconds. No stress,” he says. He uses the wallet two to three times a day, and customers also transfer money directly to him.
A farmer fills out a loan repayment form using the HesabPay digital wallet. Photo: HesabPay.
Confidence and growth through digital inclusion
For Sayad Ahmad, the moment his first payment arrived from his partner, the Mutahid Microfinance Institution, the physical burden of the plastic cash bag vanished. Today that plastic bag has been replaced by Ahmad’s mobile phone, offering a level of security that was previously non-existent. Apart from the physical risks of cash, digital transactions provide instant clarity and a record of payment.
"When the payment message comes, I feel happy," Sayed says, noting that the system makes his work both faster and easier.
Beyond simple security, his digital wallet allows him to pay bills, buy bus tickets, and send mobile credit directly from his shop. While challenges remain, such as the distance to physical branches for withdrawing funds, the shift to digital has given Sayed a newfound passion for business.
“It is a good program. It helps my business grow. Using the digital wallet makes me feel confident and happy.”
His long-standing business relationship with Mutahid, the microfinance provider, includes the regular supply of essential goods such as wheat flour, rice, and oil. The orders range from 20,000 AFN to 150,000 AFN, about US $300 to $2000 USD, a significant contribution to his business and the local economy.
He hopes to one day expand his business by renting additional shops. For now, his goals are clear and modest, provide good customer service, and pay off his Mutahid loan on time.
