The North African country's outdated financial system has been a hurdle to much-needed investment to boost its economy and diversify away from oil and gas, which account for 60 percent of the budget and 95 percent of the country's export revenue.

"We are accelerating the modernisation of the banking sector," Boudiaf, the deputy minister for digital economy and financial systems modernisation, said at a conference debate.

Six state banks will provide the first e-payment services before the end of December to pay for items including phone bills, electricity and drinking water.

"The operation will expand to other transactions from the first quarter of 2017," Boudiaf said.