The digital economy in Iraq is expanding fast, fueled by growing use of electronic payments and pre-paid cards. In response, the Central Bank of Iraq (CBI) has issued a new legal framework to regulate this booming sector. As well as This move aims to build trust, attract investment, and boost innovation.
Over 10 million pre-paid cards are now in use across the country. In 2024 alone, electronic transactions exceeded 20 trillion Iraqi dinars. These figures reflect the rapid shift toward digital finance. To support this shift, Iraq introduced Electronic Payment Services Regulation No. (2) for 2024.
The new law replaces outdated rules from over ten years ago. It gives Iraq’s fintech industry a clearer, stronger legal base. This regulation aligns with the National Financial Inclusion Strategy, launched by the CBI in partnership with global groups like the World Bank and GIZ.
According to a breakdown by ALSAIF Law Firm, which has over 40 years of experience, the new regulation defines key roles in Iraq’s digital payment system. So these include:
- Operators: Entities that run the core payment technology.
- Participants: Licensed financial institutions that use the system.
- Electronic Payment Service Providers (EPSPs): Platforms like e-wallets and mobile apps.
- Agents: Representatives acting on behalf of EPSPs.
The law authorizes EPSPs to carry out many digital services. These include issuing debit and credit cards, operating digital wallets, processing mobile payments, transferring funds, and working as payment aggregators.
The digital economy in Iraq is now more open to local and global companies. So however, entering this space requires companies to meet strict rules. As well as The licensing process includes submitting official documents, financial details, and a full business plan.
One key rule is a minimum capital requirement of 10 billion Iraqi dinars. As well as Applicants must also provide a detailed three-year plan. So this plan must cover economic forecasts, tech systems, customer support, and anti-fraud systems.
After applying, companies can expect a response from the CBI within 90 business days. In addition most receive a preliminary license first, giving them time to complete technical setup before starting operations.
This regulation marks a big step toward building a secure, fair, and advanced financial system. With over 45 million people and the fastest expected GDP growth in the MENA region, Iraq offers big opportunities. In addition The new framework helps unlock them.
By offering structure and legal clarity, the digital economy in Iraq becomes more attractive to serious investors and innovative companies. As well as This progress paves the way for inclusive growth and economic transformation.