Iraq’s rapid shift toward digital payments could create a broader opportunity for financial inclusion, provided transaction data is used to improve access to financial services rather than drive indiscriminate lending.
According to the Central Bank of Iraq, domestic card-based transfers exceeded 58 million transactions in 2024, up 213.6% year on year, with a total value of IQD 21.1 trillion. Mobile and electronic-wallet transfers also surpassed 25 million transactions.
Yet World Bank data indicates that only around 30% of Iraqi adults had a financial account in 2024. The gap suggests that digital payments could become an entry point to deeper participation in the formal financial system.
For small businesses, electronic transactions can create a clearer financial footprint. That history could eventually help banks assess working-capital needs and offer more relevant products, alongside financial statements, existing obligations and other conventional underwriting information. It would not, however, guarantee credit.
Iraq’s National Financial Inclusion Strategy for 2025-2029 includes expanding account ownership, modern electronic payments, infrastructure and regulation. The Central Bank has also supported account opening, POS deployment and card issuance in commercial districts.
The next challenge is turning payment infrastructure into economic infrastructure through reliable systems, interoperability, cybersecurity, privacy safeguards and responsible partnerships between banks and payment companies.
Source: Iraq Business News
