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Stephanie Starr
@StephanieStarrC
Iraq’s Electronic Payments Revolution Isn’t About Convenience—It’s About Rebuilding the Economy.
For the last 3 years, the CBI has aggressively pushed electronic payments because they’re creating an entirely new non-oil revenue stream while reducing c********n, tax evasion, and the shadow economy.
Government e-payment collections have already surged from 2.6 trillion IQD in January 2023 to approximately 7.6 trillion IQD by late 2024—nearly a 3x increase.
2024: Government digital payment collections reached 7.6 trillion IQD (up from 2.6 trillion IQD in January 2023).
2025: Iraq completed the transition to 100% electronic payments across government institutions by July 2025, but officials have not published a new nationwide cumulative collection total comparable to the 7.6 trillion IQD figure.
2026: The latest figures available show:
3.6 trillion IQD in electronic government revenue collected through Rafidain Bank during the first half of 2026.
841 billion IQD in electronic government collections during January 2026 alone, processed for 2,544 government entities, up from 1,808 entities a year earlier.
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The broader digital payments market is projected to process about $16.2 billion annually, growing at roughly 25% per year as POS terminals, QR payments, bank cards, and mobile wallets continue expanding nationwide.
This is why CBI Governor Nizar Hussein continues meeting with payment companies:
✅ Increase financial inclusion
✅ Reduce Iraq’s dependence on cash
✅ Meet international compliance standards for cross-border payments
✅ Expand banking services
✅ Increase government collections and transparency
Some analysts believe that as Iraq’s banking modernization continues, digital payments and the broader financial services sector could eventually contribute 20–30% of economic activity alongside other non-oil sectors. However, this is a forward-looking projection, not Iraq’s current official GDP contribution.
This isn’t just fintech…
It’s the foundation for a diversified economy where non-oil revenues, digital banking, tax collection, international trade, and private-sector growth become major drivers of Iraq’s future. The digital economy is no longer optional! It’s becoming one of the pillars of Iraq’s economic transformation.
Non-oil revenues are critical because Iraq’s long-term economic stability depends on reducing its dependence on oil. Today, oil still accounts for roughly 90% of government revenue and the vast majority of export earnings. That makes Iraq extremely vulnerable to swings in global oil prices.
Here’s why the government and the Central Bank of Iraq (CBI) are pushing so hard to grow non-oil revenue:
✅ Economic stability: When oil prices fall, government income drops sharply. A broader tax base and digital economy provide more predictable revenue.
✅ Budget sustainability: Non-oil revenue helps fund salaries, infrastructure, healthcare, education, and public services without relying almost entirely on oil exports.
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✅ Private-sector growth: Digital payments, banking, retail, tourism, agriculture, manufacturing, and technology all generate taxes and fees while creating jobs.
✅ Reduced c********n: Electronic payments create an audit trail, making it harder to evade taxes, commit fraud, or move money through the informal cash economy.
✅ Financial inclusion: Bringing more citizens into the banking system increases deposits, expands lending, and stimulates investment.
✅ International integration: Meeting global banking and compliance standards makes Iraq more attractive to foreign investors and facilitates cross-border trade.
Many people ask how the Hydrocarbon Law (HCL) and the CBI’s push for electronic payments are connected.
Here’s the bigger picture:
The HCL creates the legal framework for managing and distributing Iraq’s oil revenues between Baghdad, the Kurdistan Region, and the provinces. The electronic payment system is the financial infrastructure that ensures those revenues—and the country’s growing non-oil revenues—can be collected and distributed securely, transparently, and efficiently.
Why has the CBI spent the last 3 years aggressively expanding digital payments?
✅ Reduce c********n and cash leakage
✅ Increase tax and customs collections
✅ Bring millions into the banking system
✅ Meet international banking standards
✅ Strengthen investor confidence
✅ Grow non-oil revenue
Iraq understands that relying on oil for roughly 90% of government revenue isn’t sustainable.
The strategy is clear:
Oil revenues continue to power the economy through reforms like the HCL.
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Digital payments, banking, taxes, customs, tourism, manufacturing, agriculture, and private enterprise become the next engines of growth.
The HCL manages how wealth is generated. The banking reforms determine how wealth moves through the economy. Together, they’re laying the foundation for a modern, diversified financial system that is more transparent, attracts investment, and is less dependent on oil.
This isn’t just about electronic payments.
It’s about building the financial infrastructure for Iraq’s next chapter.
Source(s):
• https://x.com/StephanieStarrC/status/2079549855492444513
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