In numbers…a major development in the use of electronic payment in Iraq

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iraq news

The Iraqi Private Banks Association announced a “major” development in the use of electronic payment tools since government directives were implemented in all ministries and institutions starting from June 1.
According to a statement received by the Shafaq News Agency, the Executive Director of the Association, Ali Tariq, has expressed that electronic payment is undergoing significant changes under the supervision of the Central Bank of Iraq. The Central Bank has provided necessary infrastructure, technical and advisory support to government institutions. The Prime Minister, Muhammad Sudanese Bank, has also directed the promotion of electronic payment within government institutions. Additionally, the Central Bank and the Association of Private Banks have launched extensive advertising campaigns to create awareness about electronic payment.
According to Tariq, there are currently 337 ministries and government institutions that have partnered with electronic payment companies and have published points of sale. Since the Cabinet’s decision, the number of points of sale has increased by 123%, with a total of 23,906 devices distributed to both private and government institutions. Of these devices, 19,696 are in stores and private institutions, while 4,210 are in ministries and government institutions. Additionally, there have been around 1.56 million financial settlements made through these points of sale, with 1.15 million transactions coming from the private sector and 403.7 thousand from government institutions since the decision was implemented.
In his speech, Tariq emphasized the importance of electronic payment as a crucial step towards economic reform. He explained that it enhances financial inclusion and builds trust between citizens and the banking sector. This, in turn, increases deposits and the ability of the banking sector to finance strategic projects. Additionally, electronic payment contributes to reducing corruption and activating E-government by enabling citizens to complete transactions remotely.
In early June, the Central Bank of Iraq declared that Council of Ministers Resolution No. (23044) for the year 2023 had become effective. This resolution aims to promote electronic payment and collection culture by increasing the number of electronic payment devices (POS) in both government institutions and the private sector. This move is expected to reduce the use of paper money in collections and transactions.

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