Is online payment available in Iraq?

19 Jan 2024 By PAYCEC

Online payment refers to making transactions or paying for goods and services over the Internet. Instead of using physical currency, checks, or other traditional forms of payment, online payment relies on electronic methods to transfer funds between individuals or businesses.

The most common forms of online payment include credit card transactions, digital wallets, and bank transfers.

The question of whether people can use online payment in Iraq is a bit complicated. The country has some electronic payment options, with the Central Bank of Iraq giving licenses to 17 companies to run digital wallets.

These companies, such as AsiaHawala, Zain Cash, NassWallet, and FastPay, are trying to bring digital transactions to the country.

However, company entrepreneurs looking to accept online payments in Iraq confront two challenges. Locals are not keen on adopting these new Iraqi payment methods. They prefer to pay with cash and are hesitant to trust digital methods.

Second, Iraqis do not have access to global digital payment systems widely used by businesses worldwide. Anas Fadhil, a market data analyst, explained, "People here do not understand digital currency. Everyone is used to cash and has more trust in it than digital payments."

It’s not easy because most Iraqis don't use credit or debit cards, and very few have the needed bank accounts, as per the World Bank.

Also, popular global payment services like PayPal, Apple Pay, and Stripe are unavailable in Iraq, likely because these companies think it is too risky to operate there.

While Iraq faces these challenges, the rest of the world is quickly moving towards digital payments.

The World Bank found that two-thirds of adults worldwide now use online payments. In less developed regions like Africa and Asia, this number has risen from 35% in 2014 to 57% in 2021.

However, on the popular Iraqi payment platform Miswag, only 2% of transactions are conducted online. Ali Hilli, the head of marketing and communications at Miswag, revealed that the overwhelming majority, a staggering 98%, relies on the traditional cash-on-delivery method.

In the middle of these challenges, PayCEC presents a potential solution. PayCEC is an online payment service that focuses on making online payments in Iraq simple and safe.

It can be a helpful partner for businesses in Iraq as the country tries to catch up with the ever-evolving narrative of the global economy. Check out PayCEC to discover how its secure and user-friendly platform can be crucial in normalizing online payments in Iraq.