IRAQ LAUNCHES PROJECT TO ISSUE LOCAL ELECTRONIC PAYMENT CARDS

IRAQ LAUNCHES PROJECT TO ISSUE LOCAL ELECTRONIC PAYMENT CARDS

Iraq has launched a project to issue a local electronic payment card, aiming to enhance financial trust between the public and the government. This is part of Baghdad’s efforts to strengthen its digital infrastructure and provide secure and reliable electronic payment solutions that support the national economy.

The Central Bank of Iraq confirmed – in an official letter addressed to all banks and electronic payment companies – that this national system for local electronic payment cards will be implemented gradually, and that the card identifiers (BIN) and application identifiers (AID) will be issued exclusively by the Central Bank.

The cards represent an additional local option for use within Iraq exclusively in Iraqi dinars. The bank emphasized that they do not replace or restrict existing international cards such as Visa Card and MasterCard, but rather complement the financial system and provide a national alternative, according to the bank.

Government economic advisor Alaa Al-Fahd expects the national electronic payment card to be launched before the end of 2025, as part of the Central Bank of Iraq’s efforts to implement comprehensive financial and banking reforms.

Al-Fahd told Al Jazeera Net that this national card will achieve several key objectives, most notably improving the quality of financial services and reducing fees. It will be a purely local card, he emphasized, noting that it will not replace existing international cards, such as Visa and MasterCard, but will work in tandem with them to enhance the options available to citizens.

Alaa Al-Fahd: The new cards will be exclusively local. He added that the Central Bank will be responsible for issuing this card, and that this approach is already in place in many developed countries. He continued, “The card is unique in that it is intended for local use, and aims to build public confidence and enable control over its operations and procedures nationally and locally.” He described this measure as “natural and legal, aiming to create a competitive environment, improve the quality of services, increase financial inclusion, and enhance public confidence in the local banking sector.”

On February 10, the General Secretariat of the Iraqi Council of Ministers announced the suspension of cash transactions in all state institutions, effective at the end of June. All transactions would be fully electronic beginning July 1.

This decision is the culmination of Iraq’s efforts, which began more than two years ago. The country has witnessed a gradual expansion in the use of electronic payment tools. Government departments have begun implementing this system in several vital sectors, such as traffic, fuel filling, and electricity collection.

This gradual expansion has helped citizens become accustomed to using electronic payments, encouraging the government to move toward full compliance with these transactions.

Positive project

For his part, financial and economic expert Mustafa Hantoush emphasized that the launch of the national plan for a local card system is a very positive project that aligns with the rapid development of electronic payment processes.

Hantoush told Al Jazeera Net that the system will include an internal network and a national center that will allow companies to subscribe and issue their own payment cards. He noted that the system will be independent of any international sanctions or restrictions and will operate in Iraqi dinars to ensure the continuity of financial transactions on a permanent and stable basis.

He added that existing international cards, such as Visa and MasterCard, will remain valid for those who need to use them outside Iraq, stressing that the local card will feature reasonable fees and transparent data.

He continued: “This card will enhance competition among companies that obtain card issuance services from the Central Bank, providing an easier and more convenient mechanism for dealing in Iraqi dinars, thus meeting the needs of a broad segment of the Iraqi population and ensuring greater data confidentiality.”

Hantoush emphasized the importance of developing the capabilities of the National Electronic Payments Center at the Central Bank of Iraq, suggesting that the central bank will work in the future to establish a national electronic payments company to provide services and issue cards.

There are several types of electronic payment cards available in Iraq, including debit, credit, and prepaid cards issued by banks and payment companies. These cards enable users to make online purchases, withdraw cash, and pay at merchants.

Prominent examples of these cards in Iraq include Visa and MasterCard, which are the most common, as well as the “Ki Card,” a widely used local payment card. The Rafidain credit card also offers special facilities.

Banks such as Ashur , Middle East Bank, and Al-Ahli Bank of Iraq offer a variety of debit cards, MasterCards, and other electronic payment services.

Towards the better

Iraqi businessman Abdul Hassan Al-Ziyadi welcomed the Central Bank of Iraq’s move to launch a national electronic payment card, describing it as a “step towards the better.”

Al-Ziyadi told Al Jazeera Net that this initiative comes in light of previous experiences with unscrupulous companies that caused harm to citizens, as some of their systems were compromised by internet hackers.

He explained that issuing a dedicated card for dealing in the Iraqi local currency and controlling the situation within the country, so that it accommodates the most important projects and transactions of companies, the government, and economic institutions, is an absolutely necessary step.

Al-Ziyadi predicted the success of this card, given that it is a well-considered step managed by the Central Bank of Iraq, despite some concerns about the bank’s work.

He pointed out that Iraq is in dire need of a local identity card to address the challenges of corruption and the numerous problems that lead to the waste of public funds and, consequently, the weakening of public confidence.