Baghdad- Iraq launched a project to issue a local electronic payment card, targeting the promotion of financial confidence between the public and the government, as part of Baghdad’s efforts to enhance digital infrastructure and provide safe 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 the cards (BIN) and applications (AID) will be issued exclusively by the Central Bank.
The cards are an additional local option that is used in Iraq exclusively in the Iraqi dinar, with confirmation that it does not cancel or restrict the existing international cards such as Visa Card and MasterCard, but rather comes to complete the financial system and provide a national alternative, according to the bank.
Launch
The government economic advisor, Alaa Al -Fahd, expected the launch of the national electronic payment card before the end of 2025, as part of the efforts of the Central Bank of Iraq to conduct comprehensive financial and banking reforms.
Al -Fahd – Al -Jazeera Net – said that this national card will achieve several main goals, the most important of which is to improve the quality of financial services and reduce the dedicated fees, and it will be a local card with distinction, stressing that it will not be a substitute for international cards currently circulating, such as Visa Card and MasterCard, but will work in parallel with them to enhance the options available to citizens.
He added that the central bank will be the authority responsible for issuing this card, and that this approach is in force in many developed countries of the world.
He continued: “The card was distinguished as for local use, and aims to build the public’s confidence and provide control and procedures nationally and locally,” describing this procedure as “natural and legal aimed at creating a competitive environment, improving the quality of services, increasing financial inclusion, and enhancing the confidence of the public in the local banking sector.”
And the General Secretariat of the Iraqi Council of Ministers announced on February 10 to stop the cash transactions in all state institutions from the end of last June, so that all transactions will be completely electronic starting from July 1.
This decision comes as a culmination of the efforts of Iraq, which started more than two years ago, as the country witnessed a gradual expansion in the use of electronic payment tools, and government departments began to implement this system in multiple vital sectors, such as traffic, fuel packing, and electricity meal.
This gradual proliferation contributed to creating a state of habit of citizens to use electronic payment, which encouraged the government to move forward towards fully obligated these transactions.
Positive project
For his part, the expert on financial and economic affairs, Mustafa Hantoush, stressed that the launch of the national plan for the local cards system is a very positive project and is commensurate with the accelerated development of electronic payment operations.
Hantush said – for Al Jazeera Net – that this system will include an internal network and a national center that allows companies to participate in it and issue their own payment cards, noting that this system will be independent of any international sanctions or restrictions, and will work in the Iraqi dinar to ensure the continuity of financial operations permanently and stable.
He added that the current international cards such as Visa Card and MasterCard will remain effective for those who need to use it outside Iraq, stressing that the local card will be characterized by reasonable fees and transparent data.
He continued: “This card will enhance competition between companies that obtain cards issuance services from the central bank, which provides an easier and more suitable mechanism for dealing in the Iraqi dinar, and thus meet the needs of a wide segment of the Iraqi people and provide a greater confidentiality of data.
Hantoush stressed the importance of developing the capabilities of the National Center for Electronic Payment in the Central Bank of Iraq, suggesting that the Central in the future will work to establish a national electronic payment company, which will provide services and the issuance of cards.
There are multiple types of electronic payment cards in Iraq that include direct debit cards, credit and pre -payment issued by banks and payment companies, and these cards enable users to buy online, withdrawal and payment of traders.
Among the most prominent examples of these cards in Iraq Visa and MasterCard as the most common, in addition to “Ki Card”, a widespread local payment card, and the Rafidain Card with special facilities provides special facilities.
Banks like Assyria offer And the Middle East Al -Ahly Al -Iraqi are various types of direct debit cards, MasterCard and other electronic payment services.
For better
Iraqi businessman Abdul Hassan Al -Ziyadi welcomed the step taken by the Central Bank of Iraq to launch a national electronic payment card, describing it as a “step for the better.”
Al -Ziyadi – to Al -Jazeera Net – said that this initiative comes in light of previous experiences with non -discreet companies that caused damage to citizens, as some of its systems were hacked by Internet pirates.
He explained that the issuance of a dedicated card to deal with the Iraqi local currency and control the situation inside the country, so that it accommodates the most important projects and transactions in companies, state or economic institutions, is a very necessary step.
Al -Ziyadi suggested the success of the work of this card, as it is a deliberate step and managed by Central Bank The Iraqi, despite the presence of some observations on the bank’s work.
He pointed out that Iraq is in urgent need of a local card to meet the challenges of corruption and the multiple problems that lead to wasting public money, and thus the weakness of the citizen’s confidence.