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

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

The Iraqi Private Banks Association announced a significant development in the use of electronic payment tools. This follows government directives implemented in all ministries and institutions since June 1st.

The Executive Director of the Association, Ali Tariq, stated in a press release that electronic payment is undergoing a significant transformation, with the Central Bank of Iraq overseeing it and providing infrastructure, technical, and advisory support to government institutions. He also mentioned that Prime Minister Muhammad Sudanese Bank’s directives helped to promote the concept of electronic payment by spreading it within government institutions. Additionally, the Central Bank and the Association of Private Banks launched intensive advertising campaigns to raise awareness about electronic payment.

Tariq noted that 337 government institutions have contracted with e-payment companies and published points of sale.

According to his statement, the number of points of sale has increased by 123% since the Cabinet’s decision. Currently, there are 23,906 points of sale, as compared to 10,718 devices previously. These points of sale are distributed among 19,696 stores and private institutions, as well as 4,210 ministries and government institutions.

According to his statement, the total number of financial settlements made through point of sale terminals has reached 1.56 million transactions, out of which 1.15 million transactions were made by the private sector and 403.7 thousand transactions were made by government institutions since the decision was implemented till date.

At the end of his speech, Tariq emphasized the significance of electronic payments in transforming the economy. He pointed out that this would promote financial inclusion and trust between citizens and the banking sector. Additionally, it would increase deposits and the banking sector’s capability to finance important projects. Furthermore, electronic payments can help to reduce corruption and enable the government to complete citizens’ transactions remotely through E-government.

In early June, the Central Bank of Iraq made an announcement about Council of Ministers Resolution No. (23044). This resolution aims to increase the number of electronic payment devices (POS) in both government institutions and private organizations. The initiative aims to promote the use of electronic payment methods and reduce the use of paper money in transactions. The move is expected to enhance the culture of electronic payment and contribute to the overall modernization of the financial system.