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

The Iraqi Private Banks Association announced on Tuesday a “major” development in the usage of electronic payment systems, following government orders adopted in all ministries and organizations beginning June 1st.

According to the Association’s Executive Director, Ali Tariq, in a statement received by Shafaq News Agency, electronic payment is undergoing a major transformation at the moment, thanks to the supervision of the Central Bank of Iraq, which has contributed to providing infrastructure as well as technical and advisory support to government institutions, indicating that Prime Minister Muhammad Sudanese Bank directives have contributed to promoting the concept of electronic payment.

Tariq stated that 337 ministries and government agencies had signed contracts with electronic payment businesses and listed places of sale.

He went on to say that since the Cabinet’s decision, the number of places of sale has increased by 123%, from 10,718 to 23,906, with 19,696 in retail and commercial institutions and 4,210 in ministries and government organizations.

He stated that the number of financial settlements conducted through points of sale amounted to about 1.56 million transactions, including 1.15 million transactions for the private sector and 403.7 thousand transactions for government organizations from the start of the decision until today.

Tariq concluded his speech by saying that electronic payments are the most important step toward economic reform because they improve the concept of financial inclusion and increase trust between citizens and the banking sector, which will have a significant impact on deposit growth and the banking sector’s ability to finance strategic projects. It also helps to reduce corruption and activate… E-government by allowing citizens to complete transactions remotely.

The Central Bank of Iraq announced in early June that Council of Ministers Resolution No. (23044) for the year 2023 had gone into effect, which was to increase the number of electronic payment devices (POS) in government institutions and the private sector in order to improve the culture of electronic payment and collection and reduce the use of cash.