During a visit to one of Havana's busiest markets, a stark issue faced by many Cubans was brought to light. Yâïmy Fonseca, a Cuban resident, shared a video on Facebook highlighting how no vendor at the Virgen del Camino market accepts bank transfers due to frequent power outages hindering transaction verification.
The video, which has garnered over 40,000 views, shows stalls selling meat, chicken, rice, and other goods. Fonseca asks the vendors if payments can be made using Transfermóvil or Enzona, receiving a consistent response from all: “None of these people accept transfers. No one here accepts transfers... In all of Virgen del Camino, no one accepts transfers. The reason is there's no electricity,” Fonseca explains in the footage.
Widespread Impact Across the Island
This scene is not unique to Havana; it's a widespread issue across Cuba. Without electricity, electronic payment platforms become inoperative, confirmation messages fail to arrive, and vendors cannot confirm payment before releasing goods.
Additionally, a preference for cash payments exists among many private businesses, as withdrawing money from bank accounts is challenging due to a persistent cash shortage in Cuba's financial system. In May, statistics from Sancti Spíritus revealed that less than 10% of private businesses accepted digital payments. Similarly, in Havana's La Lisa and El Cotorro municipalities, very few establishments used digital payment systems, and where they did, surcharges up to 20% were sometimes applied, a practice prohibited by authorities.
Policy Challenges and Economic Strain
The issue underscores the challenges of the Cuban government's banking policy initiated in August 2023 under Resolution 111, intended to expand electronic payment use amid a cash shortage. Despite the regime acknowledging the strategy's limitations in 2024, the obstacles have worsened by 2026.
The severe energy crisis, considered the worst in decades, has exacerbated system functionality. On June 16, the Unión Eléctrica reported an availability of only 995 megawatts against a demand of 2,620 MW, leading to a deficit exceeding 1,600 MW. Some areas experienced blackouts lasting over 50 hours consecutively.
Banking System and Public Discontent
Adding to the woes is the liquidity shortage in banks. In April, EFE reported wait times of up to six hours at Havana bank branches, where many retirees queued to collect their pensions. That same month, Granma's provincial government admitted lacking the 400 million pesos needed to pay over 111,000 pensioners.
Despite the government announcing a 176-measure economic package in June, including permitting private banking, its impact has yet to be seen in the daily lives of Cubans. Fonseca encapsulated this frustration in his post: “What good is having money in the bank if it's increasingly difficult to withdraw it? And when trying to pay by transfer, many places don't accept it. Daily life in Cuba has become a constant struggle.”
Understanding Cuba's Payment Dilemmas Amid Energy and Economic Crises
Why do Havana market vendors reject bank transfers?
Vendors refuse bank transfers primarily due to frequent power outages, which prevent them from verifying transactions. Additionally, many prefer cash payments due to difficulties in withdrawing money from banks amid a cash shortage.
What challenges does Cuba face with electronic payments?
Cuba's electronic payment challenges include unreliable electricity affecting transaction confirmations and a banking policy struggling to cope with cash shortages. This situation is compounded by technical limitations of the payment platforms.
How is the energy crisis affecting Cuba's economy?
The severe energy crisis has significantly hampered economic operations, with power shortages impacting businesses and daily life. This has led to a broad dysfunctionality in electronic payment systems and overall economic strain.