A strategic partnership between MasterCard and the Central Bank of Iraq to develop payment systems

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Monday 19 April 2021 | 12:29 a.m.

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A strategic partnership between MasterCard and the Central Bank of Iraq to develop payment systems

 

MasterCard has signed a partnership agreement with the Central Bank of Iraq to digitize the payment systems in the country, in a move aimed at enhancing financial inclusion, advancing social and economic development, reducing the risks of the shadow economy, and accelerating progress towards a cashless society. The partnership aims primarily to build an efficient, reliable and secure payment system, which will start with the education sector and then expand to other sectors. Not only will this reduce the use of cash, enhance digital payments and increase government revenues, but also overcome significant operational and administrative deficiencies in the education sector by reducing the excessive use of manual processes. It is noteworthy that the population of Iraq, of 40 million, depends on cash payments on a large scale, as these payments are used in 99.8% of personal consumption spending transactions that amounted to $ 122 billion in 2019. However, this does not reduce the great opportunities available for digital transformation, as the country has a large smartphone penetration rate of up to 70%, and 22% of the population falls within the category of tech-savvy youth between the ages of 15 and 24. In addition, most students' parents and guardians have limited options for payment methods, as the majority of students use cash for all their payments. In light of the fact that parents or students do not have bank accounts, or do not use online payment services, it is very important to work to encourage a change in the way school fees are paid, which will positively affect the payments system and the economy as a whole. Commenting on the partnership, Mrs. Doha Abdel-Karim Mohamed said; Director General of the Payments Department at the Central Bank of Iraq: The work that MasterCard has done in Iraq over the past few years has left a noticeable impact on the country's financial services sector and greatly enhanced levels of financial inclusion. We, at the Central Bank of Iraq, are fully aware of the vital role the digital economy plays at this stage, especially enabling the formal economy to grow through a new payment system that is transparent, simple and effective. We also look forward to working with MasterCard to advance the digital transformation process in Iraq, starting with the education sector. ”Khaled Al-Jabali, Regional President of MasterCard in the Middle East and Africa, said:“ Establishing a digital payments system is very important because it encourages economic development and contributes to Reducing the use of cash and the shadow economy as well. Our work with the Central Bank of Iraq focuses on improving the efficiency of the economy as a whole, starting with educational institutions, by giving students, parents and merchants a safer, easier and more comfortable way to pay. The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains. These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments. The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains. These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments.

[yota691]

To develop digital payments systems ... the Central Bank and MasterCard sign a strategic partnership

Economie| 10:15 - 19/04/2021

 

 

 

 

Baghdad - Mawazine News
The Central Bank of Iraq announced, on Monday, the signing of a partnership agreement with the "MasterCard" company, to digitize the payment systems in the country, in a step aimed at enhancing financial inclusion, advancing social and economic development, reducing the risks of the shadow economy, and accelerating progress towards a society. No cash.
"The partnership aims primarily to build an effective, reliable and secure payment system, as it will start with the education sector and then expand to other sectors," the Central Bank said in a statement that Mawazine News received.
The bank added, "This will not only limit the use of cash, enhance digital payments and increase government revenues, but also overcome the large operational and administrative deficiencies in the education sector by reducing the excessive use of manual operations."
"The work done by MasterCard in Iraq over the past few years has left a noticeable impact on the financial services sector in the country, and has greatly enhanced levels of financial inclusion," said the Director-General of the Payments Department at the Central Bank.
 She added that we at the Central Bank of Iraq, "are fully aware of the vital role that the digital economy plays at this stage, in particular enabling the formal economy to grow through a new payment system that is transparent, simple and effective," noting "looking forward to working with MasterCard to advance the process of digital transformation in Iraq." Starting with the education sector. "
For his part, the regional president of MasterCard in the Middle East and Africa, Khaled Al-Jabali, affirmed that "the establishment of a digital payment system is very important because it encourages economic development and contributes to reducing the use of cash and the shadow economy as well."
He added that "our work with the Central Bank of Iraq focuses on improving the efficiency of the economy as a whole, starting with educational institutions, by giving students, families and merchants a safer, easier and more comfortable way to pay."
"This is only the beginning," Al-Jabali said. "We are looking forward to expanding into other sectors at a later stage, in the context of our work to promote an integrated payment system and achieve financial inclusion in Iraq."
It is worth noting that the population of Iraq, of 40 million people, depends on cash payments on a large scale, as these payments are used in 99.8% of personal consumption spending transactions that amounted to $ 122 billion in 2019. But that does not reduce the great opportunities available. For the digital transformation, the country has a large smartphone penetration rate of 70%, and 22% of the population falls within the category of tech-savvy youth between the ages of 15 and 24.
In addition, most students' parents and parents have limited options for payment methods, as the majority of students use cash for all their payments.
In light of the fact that parents or students do not have bank accounts, or do not use online payment services, it is very important to work to encourage a change in the way school fees are paid, which will positively affect the payments system and the economy as a whole.
The partnership between MasterCard and the Central Bank of Iraq is an important shift that allows the development of an integrated digital payment system that covers the basic pillars of the economy in Iraq, including the use of public policies and systems to curb the shadow economy, the comprehensive modernization of the payments system, and the digitalization of key value chains. These measures include government revenue and payments, consumer spending, as well as business purchases and salary payments. Ended 29 / p4

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The Central Bank of Iraq signs an agreement with "MasterCard" to promote digital payments

 

Economy  ,   04/19/2021 20:46   ,

 

 

http://iraqtoday.com/ar/news/50406/البنك-المركزي-العراقي-يوقع-إتفاقا-مع--ماستركارد-لتعزيز-المدفوعات-الرقمية?latest

 

Baghdad - Iraq today: The

government of Prime Minister Mustafa Al-Kazemi is moving towards strengthening comprehensive governance in its institutions, moving from the traditional method of managing public payments to modern mechanization, to reduce the phenomenon of corruption and bureaucracy, and also to eliminate currency inflation in local markets. In this report, we highlight On the part of ongoing governance processes in financial payment systems.

Today, Monday, the Central Bank of Iraq signed an agreement with the global payment company Mastercard to limit the use of cash and promote digital payments in the country.

The two parties said in a joint statement, the agreement will help Iraq digitize its payment system, enhance financial inclusion, encourage social and economic development, and mitigate the risks of the shadow economy.

"We are very looking forward to working with MasterCard to drive digital transformation in Iraq, starting with the education sector," said Doha Mohammed, General Manager of Payments Division at Commercial International Bank.

"We are clearly aware that the digital economy has a vital role to play ... especially in enabling formal economic growth through a new payment system that is transparent, simple and efficient."

According to the World Bank, Iraq's population of 40 million depends to a large extent on cash. The bank said that nearly 99.8 percent of its $ 122 billion in personal spending was cash in 2019.

However, there is significant untapped potential for digitization. MasterCard, citing figures from the World Bank and Statista, said that Iraq has a smartphone penetration rate of 70 percent, and about 22 percent of the population falls into the category of tech-savvy youth.

The statement said that the partnership will initially aim to build a secure payment system within the education sector.

Said Khaled al - Jabali, head of the Middle East and North Africa in the MasterCard "will focus our work with the Bank of the Iraqi Central to improve overall efficiencies [in] the economy, ranging from educational institutions by giving parents, students and traders how much safer, simpler and easier to pay,"

said Jabali : "This is only the beginning .. We look forward to expanding into other sectors at a later stage, as we work to enhance the full payment system and achieve financial inclusion in Iraq."

The entities said the partnership will develop a fully digital ecosystem in Iraq, covering key pillars including the use of public policy and regulation to curb the shadow economy and the push for digitalization of key value chains.

Value chains include government collections, disbursements, consumer spending, business purchases, and salary payments

[Wheelman]

This is how the HCL money is going to be distributed to the Iraqi citizens, just my opinion.

[Laid Back]

"This is only the beginning .. We look forward to expanding into other sectors at a later stage, as we work to enhance the full payment system and achieve financial inclusion in Iraq." 
 

- Bring your chunky cash

- Open a bank account ( financial inclusion)

- Get your MasterCard

 

The entities said the partnership will develop a fully digital ecosystem in Iraq, covering key pillars including the use of public policy and regulation to curb the shadow economy and the push for digitalization of key value chains. 

Value chains include government collections, disbursements, consumer spending, business purchases, and salary payments.

e-Banking

e-Card

e-Payment

e-Salary

 

Go Iraq 

Go MasterCard international 

Go openness to the world