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Responses are attributed to Leila Serhan, Visa’s Group Country Manager for North Africa, Levant, and Pakistan.
1-Could you tell me a little bit about Visa’s operations and services in Iraq?
I would like to highlight that Visa was the first of the payment networks to operate in Iraq in 2005, working with TBI, which issued the first Visa payment cards in the country. Since then, given our long-standing presence in the country, we have remained committed to strengthening our operations in Iraq and supporting the country’s nationwide digital transformation by moving the economy away from cash dependency and developing a strong digital payments ecosystem to promote financial inclusion and support economic growth.
To this end, Visa is working closely with banks, exchange houses, and telecommunications companies to introduce low-cost acceptance of digital payment solutions in the country. These include solutions that do not require POS systems and can turn a merchant’s mobile phone into a payment terminal to help small merchants thrive and future-proof their business, as well as cross-border/remittance solutions such as Visa Direct.
For instance, our partnership with the Central Bank of Iraq to enable the digital payments ecosystem through a number of initiatives, including the Practical Business Skills workshops and additional training we have provided for businesses/merchants.
Another example is our partnership with NEO, which underscores Visa’s long-term commitment to roll out the new payment solution to drive financial inclusion and serve the underbanked Iraqi population.
As the trusted engine of commerce, Visa connects the world through the most innovative, reliable, and secure payments network that ultimately helps individuals, businesses, and economies to thrive.
2-How do you evaluate Iraq’s business and investment environment, and do you have any predictions regarding the country’s economic landscape and development potential?
Iraq has many advantages that make up its economic strength. First, it is strategically located with an educated and entrepreneurial population and enormous natural wealth. It has the potential to become a global economic player and a regional political powerhouse.
Iraq’s business climate has also improved dramatically in recent years, and foreign investment has surged. Strategists and financial investors from around the world are seeking opportunities to invest in Iraq with reliable, experienced, and well-connected partners. The government’s strategic efforts toward nationwide digital transformation also continue to drive diversified economic growth and job creation under the Iraq Vision 2030.
From Visa’s perspective, we see Iraq as a market ripe for digital payments growth due to factors such as a highly educated population, internet penetration of 75% and mobile penetration of 98%, and strong growth potential for digital commerce.
The pandemic has also served as a catalyst for digital transformation, and we have seen some signs of that, for example, government employees are paid through bank accounts rather than cash as they used to be. So there is a shift toward digital payments.
There has also been significant growth in the issuance and use of new cards. And in light of this consumer trend, businesses of all sizes have had to adapt in one way or another to ensure they are responding to the growing consumer shift toward digital and contactless payments and eCommerce.
This is also where our role as a trusted engine of commerce comes into play. We continue to work closely with our Iraqi bank partners to promote the adoption of electronic payments. We are committed to supporting Iraq’s ambitions to develop a strong digital payments infrastructure that not only meets but exceeds consumer and business expectations.
3-According to a statement issued yesterday by the Central Bank of Iraq, “Visa company has started the first steps of its work in Iraq,” What does this entail for bank services and operations?
We have strong support from the Central Bank of Iraq and agree on the initiatives that need to be taken to drive financial inclusion and develop a strong digital payments ecosystem in Iraq.
We want to strengthen our relationships with our clients and stakeholders and provide them with the support they expect from Visa. We also want to promote their understanding of the multiple benefits that innovation and digital solutions can bring to economic growth.
We believe that collaboration is the key to innovation. By working with a wide range of partners, be they banks, fintech, or merchants, we can enable innovation and digital transformation. We are committed to working hand-in-hand with the Central Bank of Iraq in developing the tools and resources necessary to accelerate the growth of fast, secure, and reliable digital payments.
4-What will change in the Iraqi digital payment landscape due to this step, especially since banks and electronic payment service providers have already worked with Visa cards for years?
Visa believes that Iraq should be on the global payments industry map – specific actions need to be taken, including increasing adoption and creating awareness of trust in digital payments.
The good thing is that the Iraqi government recognizes that digital payments play an important role in driving economic growth and development. Working together, we can advance digital commerce for the benefit of Iraqi consumers, businesses, and the economy.
5-Does Visa have any contributions or plans to support entrepreneurship and technology in Iraq?
Fintechs are redefining payments and creating exciting new customer experiences. At Visa, we are doing everything we can to partner with fintech to help them launch and scale.
We are the preferred partner of banks, fintech, merchants, and governments to drive digital commerce. This is because we offer global scale, a well-known brand, security, reliability, and sophisticated capabilities. This partnership is a testament to how we are working with our partners to launch innovative and secure payment products and help address market needs while offering more enriching and rewarding experiences to customers.
Earlier this year, Visa launched our FinTech Fast Track program that offers rapid and easy access to the power of Visa’s network as well as licensing and commercial support. The global program is open to Fintechs in the Middle East as well as in Europe, Africa, Latin America, Asia Pacific, and the United States with the aim of helping to develop and accelerate the digital payment solutions of the future.
Our work with fintech also includes providing small businesses with easy-to-implement and low-cost payment solutions that help them adapt to consumers’ growing preference for digital payments, which are increasingly seen as a more secure and seamless alternative to cash.
6-What are the most serious challenges that Visa encounters in Iraq, and how, in your opinion, may these obstacles be overcome and reduced?
The economy’s dependence on cash and the fact that only 23% of Iraqi households have access to an account at a financial institution are some of the existing challenges, but they also present a great opportunity for us to promote secure, reliable digital payments and spur economic growth.
However, with the government taking several steps as part of the nationwide digital transformation program and other major financial players, including Visa, working to create a robust digital commerce ecosystem and drive acceptance of digital payment solutions, coupled with favorable demographics and consumer inclination towards digital channels, we are confident that some of these challenges will be resolved sooner rather than later.