Iraq’s cashless push gaining pace but much more needs to be done, FinTech boss says
Country's financial and economic reforms since 2023 include use of electronic payment systems
Iraq's shift from a cash-heavy economy to a digital one is gaining momentum, but policy implementation will play a crucial role, the chairman of the country’s largest FinTech company has said.
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The Central Bank of Iraq has announced that all government payments will move to electronic channels by July 2026, part of a broader plan that includes a national instant-payment platform and potentially even a digital dinar.
“The ambitions are always there, but the real need is to focus on a well-crafted and a world-class plan and the execution of it,” Bahaa Abdul Hadi, chairman and co-founder of International Smart Card, which owns the Qi Card, told The National.
Since early 2023, the Iraqi government has introduced financial and economic reforms, including the use of electronic payment systems by the government and private sectors. These also include regulations requiring electronic payment providers to tighten anti-money-laundering and cybersecurity rules.
The Central Bank of Iraq’s cashless mandate, point-of-sale incentives, e-Know Your Customer regulations, as well as other key components of this mandate “are all in place”, he said.
“What matters now is astute follow-through at the ministry level so that the Iraqi people actually reap the fruits of the mandate.”
Many Iraqis tap cards and phones instead of pulling wads of dinars from their pockets, a sign of changing payment habits. However, digital literacy remains the biggest challenge, Mr Abdul Hadi said.
“Teaching the Iraqi society why a tap or QR code scan is safer than a bundle of banknotes requires patient, empathetic education for millions of unbanked people.”
He says better incentives are needed to encourage more Iraqis to trust and adopt digital payment.
“I believe that when people experience real protection, they naturally switch from the banknotes to the digital payment,” he added.
From the government side, Mr Abdul Hadi said, the hardest challenge is managing timelines. “Regulators are juggling multiple reforms simultaneously, which often causes delays and sets us back to square one.”
Still, he is “extremely” optimistic about the future.
“Within the next five years, you will see a tipping point where digital solutions bridge the cash gap in urban Iraq. However, the rural areas may take about 10 years, but the direction is there and irreversible,” he said.
Cash could fall below 50 per cent of urban retail spending by 2030 “if the current momentum continues”. The tipping point will be universal QR payment acceptance and real-time open banking, both of which are in the pilot phase.
“A fully digital ecosystem in Iraq is therefore not a distant goal; it’s the trajectory we are actively pursuing,” Mr Abdul Hadi added.
From payrolls to fintech
Launched in 2007 by International Smart Card, the Qi Card began as a service to pay public-sector salaries and pensions electronically.
Today it claims to have more than 11 million users and a network of 23,000 point-of-sale terminals reaching every Iraqi governorate, including remote villages.
The company’s services have expanded beyond salary disbursement to retail and bill payments, remittances, buy-now-pay-later (BNPL), micro-savings and a smartphone app that accounts for the majority of transactions.
“Just five years ago, most Iraqis got to know us at a card terminal,” Mr Abdul Hadi said. “Today, six out of 10 Qi payments start from a personal smartphone wallet or with a QR tap.”
Qi Card is now exploring expansion in regional markets, including the UAE and Jordan. Its payment gateway application is in the final stages of approval by the Central Bank of the UAE. In Jordan, it has established a back office in Amman, which focuses on risk and compliance standards.
“Our top priority is serving the Iraqi diaspora in the GCC and Europe,” he said. “Beyond that, we see strong synergies in Jordan and Oman. The Levant is also on our radar, where we are exploring select markets where cash is still king – subject to the local regulatory approvals,” he added.
Misuse allegations
For the government and the central bank, the stakes are high. Moving millions of Iraqis from cash to cards and mobile wallets could curb corruption, widen financial inclusion and stabilise the dinar. Yet the same systems could also be exploited if controls fail.
chairman and co-founder of International Smart Card, which owns Qi Card
In May, The Wall Street Journal alleged that Qi’s cards were exploited in dollar arbitrage schemes benefiting Iran-backed groups, allowing local salaries to be converted into hard currency overseas to help Iran circumvent US sanctions.
The WSJ alleged that cross-border card transactions by the Popular Mobilisation Forces, an umbrella paramilitary movement, surged from $50 million to $1.5 billion monthly between early 2023 and April 2023, generating an estimated $450 million in profits in 2023 alone.
Some commanders seized subordinates' payment cards, or created fake identities to obtain additional payouts, it added.
Mr Abdul Hadi firmly rejected the claims, saying Qi maintains “zero tolerance” for any illicit use.
“Whenever our system detects a red flag, we immediately off-board the suspicious account,” he said, adding that more than 3,000 accounts have been blocked. He did not elaborate.
“Where third parties have attempted to exploit the broader card ecosystem for arbitrage, we have actively collaborated with the Central Bank of Iraq, Visa and Mastercard – taking measures such as freezing accounts, capping cross-border volumes, and blocking thousands of suspicious cards,” he added.
The company uses biometric authentication, geofencing and real-time monitoring to detect abuse, he said. In June, it also signed a three-year partnership with US consultancy K2 Integrity to strengthen oversight.
None of the US agencies have contacted Qi Card to date over these allegations, Mr Abdul Hadi said.
“We have not received any warning or any enforcement notice,” he said. The company is “fully committed to co-operating with both US authorities and Iraqi regulators, should they request information through lawful channels”.
However, Qi Card has stopped disbursing salaries for the Popular Mobilisation Forces. “This decision was made in consultation with our risk and compliance advisers to ensure full alignment with international regulations and to stay away from the US pressure.”
The US has long warned that the PMF is strengthening Iran’s influence and undermining Iraq’s sovereignty. America has blacklisted several of the group's senior leaders, including its chairman Falih Al Fayyadh.
Under pressure from the US and other foreign powers, the Iraqi government also withdrew a contentious draft law for the PMF in August, which aimed to widen its powers and elevate its status to be on a par with the rest of the Iraqi military.
Parliamentary Finance Committee: Opening alternative markets to reduce dependence on Iran
The Parliamentary Finance Committee confirmed that Parliament is working to diversify import sources and open up to alternative markets to reduce Iraq's dependence on Iran, a move aimed at protecting the national economy from the repercussions of international sanctions imposed on Tehran.
Committee member Moeen Al-Kadhimi said that Iraq is following with great concern the repercussions of the sanctions on Iran, given their direct impact on the Iraqi economy. He added that the House of Representatives, in coordination with the government, is working to prepare a package of urgent solutions, most notably supporting the national product and encouraging local investment to cover part of the expected deficit.
Rafidain Bank: 81 branches adopt the comprehensive banking system.
Rafidain Bank announced on Tuesday that 81 branches have joined the comprehensive banking system. The bank stated in a statement that "81 branches have joined the comprehensive banking system, following the entry of the Hudhayfah bin Al-Yaman branch and the General Secretariat of the Council of Ministers branch into the integrated electronic service."
He added, "The implementation of a comprehensive banking system is a critical strategic step, as it enables the transition from traditional paper transactions to modern electronic operations, which contributes to increasing operational efficiency, accelerating transaction completion, and enhancing transparency and accuracy in service delivery."
The bank also stated that "the adoption of this system is in line with the latest global banking practices, constitutes a fundamental pillar for improving the quality of services provided to customers, and paves the way for the development of innovative financial products that reflect the digital transformation in the Iraqi banking sector."
The statement also noted that "the integration of branches into the comprehensive banking system will have a direct impact on customers by reducing transaction processing time, reducing error rates, and providing more secure and flexible digital channels, providing customers with an advanced banking experience that meets their daily needs."
Transport to Al-Ghad Press: The development path will connect the East and the West and will strengthen the Iraqi economy.
Minister of Transport Razzaq Muhaibis Al-Saadawi confirmed on Saturday that the development road project will connect the east and west, diversify the Iraqi economy, and reduce reliance on oil and gas .
Al-Saadawi told Al-Ghad Press, "The Iraq Investment Forum is a great opportunity to showcase promising investment opportunities in Iraq, most notably the Development Road project, which enjoys direct support from Prime Minister Mohammed Shia al-Sudani ."
He emphasized that "the project represents a qualitative shift in the Iraqi economy and a new approach to the economic file," indicating that "the project is not merely a railway or a highway, but rather an integrated economic project linking the East and the West, and consists of the Grand Faw Port and the industrial and economic cities that will extend on both sides of this corridor from Faw to Fish Khabur ."
He added that "there are eight sectors targeted by the project by consultant Oliver Wiemann," stressing that "the project will work to diversify the Iraqi economy and reduce dependence on oil and gas ."
Earlier, Prime Minister Mohammed Shia al-Sudani said that "a special conference will be held to showcase the investment opportunities related to the Development Road project," indicating that it will be the largest in the region.
MP rules out passing oil and gas law
MP Bahaa Al-Nouri ruled out on Tuesday the possibility of passing the oil and gas law during the current period, attributing this to the ongoing deep differences between the federal government in Baghdad and the Kurdistan Regional Government.
Al-Nouri said, "Political and legal differences still prevent reaching a consensus formula for the law, indicating that the political blocs have not yet been able to overcome the obstacles related to revenue sharing and the mechanism for managing the oil file."
He added, "The lack of understanding between Baghdad and Erbil regarding natural resources makes the chances of passing the law almost non-existent at the present time." He pointed out that if the law is passed, it will be one of the most important economic laws regulating the relationship between the central government and the region.
Under the patronage of the Governor, the Central Bank celebrates the graduation of the first batch of the English language program.
The Central Bank of Iraq celebrated the graduation of 93 employees from the English language program in cooperation with the British Council in Baghdad, which is part of the joint efforts to develop the skills of the Central Bank of Iraq employees and enhance their ability to communicate internationally.
The celebration, held at the bank's headquarters in Baghdad, was attended by His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, His Excellency the British Ambassador to Baghdad, Mr. Irfan Siddiq, and the Country Director of the British Council.
The English language program is part of the Central Bank of Iraq's Human Resources Directorate's plan to develop specialized and diverse staff, in line with international best practices, to enhance the bank's performance in various financial and banking fields.
His Excellency the Governor of the Central Bank of Iraq emphasized the importance of practicing the English language in job performance, noting that investing in developing employee skills is an investment in the bank's future, and that these programs enhance the efficiency of institutional performance and contribute to achieving the bank's strategic objectives.
The British Ambassador to Baghdad also commended the ongoing partnership between the Central Bank and the British Council, expressing his appreciation for the efforts made to build employee capacity and commending the role of training programs in developing human resources and raising the level of professionalism within Iraqi institutions.
The ceremony witnessed the distribution of certificates to the graduates, amid a festive atmosphere.
Central Bank of Iraq
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US official: We will soon redeploy our forces to Iraq
BAGHDAD (Reuters) - President Donald Trump's administration will soon resume the deployment of US troops in Iraq, a US official told Al Jazeera on Tuesday It is in line with Washington's interests in the region.
The responsibility is to redeploy US forces in line with the Trump administration's strategic priorities in Iraq and the region.
Meanwhile, security sources indicated that there were movements to redeploy US forces and tactical changes in some areas.
Through the past weeks, you have achieved a combination of some monitoring points and administrative headquarters, or the warehouses that you can use your forces.
Convoys of trucks and trucks carrying military supplies moved between the al-Qaeda, and threatened from Ain al-Assad in Anbar and al-Qaeda in Baghdad, through the Kurdistan region of Iraq and Syria.
It refers to the base of a number of military cargo planes at Ain al-Assad base in Anbar province, and destroys it as a carrier for heavy military supplies and equipment, as a number of soldiers began to hide in the form of containers.
The US administration also urged Iraqi officials during its previous delay in accelerating the withdrawal and adhering to the previously challenging deadline in the agreement Besides this issue, there will be a meeting at the end of September this time.
The United Provinces General Gazette of Iraq 2003 mentions that there are about 30,000 soldiers.
In late 2011, the United States invaded Iraq under President Barack Obama and withdrew its forces from there, except for a small number of military advisers.
With the introduction of a large-scale state organization in Iraq in 2014, Washington lost its ability to propagate more than 5,000 elements, before reducing it to 3,000 2021, then reduced its forces to 2500 generally by 2023 under pressure from the Iraqi parliament.
The Pentagon is continuing to reduce its mission in Iraq.
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The Pentagon renewed its commitment to reducing its military mission in Iraq, as agreed upon last year, stating that the transition of US-led coalition operations was a result of its success in combating ISIS.
"The US government will continue to coordinate closely with the Iraqi government and coalition members to ensure a credible transition," the Pentagon said in a statement.
Iran shifts strategy: Diplomacy replaces military focus in Iraq
Iran is shifting its approach in Iraq ahead of the November 2025 parliamentary elections, focusing on diplomacy and institutional influence rather than direct military action, Daily Sabah reported on Tuesday.
Visits by Ali Larijani, secretary general of Iran's Supreme National Security Council (SNSC), to Iraq and Lebanon, and by Ammar al-Hakim, head of the National Wisdom Movement (Al-Hikma), to Tehran, reflect Tehran’s efforts to maintain its influence and manage its “proxy networks” amid regional tensions.
“Larijani's visits demonstrate that the SNSC has begun to take on a more central role in security and foreign policy matters,” the report noted, emphasizing that his engagements focused on reinforcing security agreements and addressing the presence of anti-Iranian armed groups in northern Iraq.
In turn, Al-Hakim’s visit to Tehran highlighted a “mutually beneficial approach” across security, justice, economic, and cultural cooperation. The meetings point toward structured partnerships between Iraq and Iran, underscoring a shared interest in stability, particularly as the elections approach.
Security cooperation, however, remains a central element of Tehran’s strategy, with both sides prioritizing the management of proxy forces and reducing their visibility amid US and Israeli pressures. “The visits by both leaders aim to secure Iran's strategy of controlling its proxy forces, preventing their radicalization and lowering their profile against US-Israeli attacks,” Daily Sabah added.
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The Houthis ended the truce with the US and included 13 companies and 9 individuals on a "target list."
Yemen's Ansar Allah movement (Houthis) announced Tuesday evening the end of the truce with the United States, four months after an agreement to halt attacks on American interests in the Red Sea and the region.
The Sanaa-based Humanitarian Coordination Centre (which serves as a link between the Houthis and commercial shipping companies) stated that it had placed 13 American companies, nine individuals, and two vessels on the sanctions list, according to Reuters.
This comes despite a previous truce agreed upon with the Trump administration, which stipulated that US-linked vessels sailing in the Red Sea and the Gulf of Aden would not be attacked.
In May 2025, the United States and the Houthi group agreed to a ceasefire under which neither side would target the other.
For its part, the United States imposed a new round of sanctions on the Houthis in Yemen at the beginning of September, in what the Trump administration described as the largest measure of its kind taken by Washington against the Iran-aligned movement.
The US Treasury Department announced in a statement that it had imposed sanctions on 32 individuals and entities, in addition to four vessels, in an attempt to disrupt the Houthis' fundraising, smuggling, and attacks.
Among the targets are several Chinese companies that the Treasury Department said helped transport military components, as well as other companies that help arrange the shipment of dual-use goods to the Houthis, according to the agency.
The ministry added that the sanctions also target oil smugglers and shipping companies linked to the Houthis.
It's worth noting that the US has accused the Houthis of disrupting global trade since late 2023 by launching hundreds of drone and missile attacks on ships in the Red Sea.
While the Houthi group has repeatedly declared that it is targeting ships linked to Israel in solidarity with the Palestinians following Israel's war on Gaza.
Jordan-Iraq Bank branch opened in Erbil
Jordan-Iraq Bank is expanding its branch network with the opening of a new branch in Erbil.
In a strategic move that reflects Jordan Bank Group's vision to strengthen its regional presence and consolidate its position as a leading financial institution, the bank announced the opening of its new branch in Erbil, the capital of the Iraqi Kurdistan Region.
Saleh Hamad said the opening is part of a well-designed expansion plan aimed at establishing the bank's presence in the Iraqi market and expanding its banking services to meet customer needs according to the highest international standards.
The Erbil branch provides a qualitative addition to the Bank of Jordan's regional corridor as it provides a comprehensive financial system that supports economic activity and opens up new opportunities for sustainable growth.
The Group is also committed to contributing to the development of the banking environment in Iraq and financial development through advanced digital solutions that improve the quality of service and support the development of the business environment in Iraq.
Erbil is gaining strategic importance as an active economic center and a major gateway for trade and investment, making it a key stage in the bank's plans to expand its presence in Iraq.
This expansion will allow for wider coverage of key markets and provide comprehensive banking services, strengthening Jordan Bank's position as a leading banking institution in the region that can empower various economic sectors to access advanced financial solutions, increase investment opportunities and revitalize the business environment.
Jordan Bank's expansion plans are based on a rich banking heritage and strong experience spanning more than 65 years, which has contributed to and will continue to build a comprehensive financial group with an extensive network of branches in Jordan, Palestine, Syria, Bahrain and Iraq.
The Bank continues to invest in the development of advanced digital systems, positioning itself as a leading regional financial institution capable of managing banking transformation, strengthening economic integration and establishing itself as a driver of development and stimulation of growth locally and regionally
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