Mobile payment is expected to grow strongly in Iraq over the next five years

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Iraq is an emerging market in terms of mobile payments. Large section of unbanked population and growing need of financial inclusion has induced the requirement for alternative payment solutions. Telecom operators who already exist in the market have opted for venturing into this segment due to market familiarity and existing telecom customer base. It is expected to boost e-commerce in the country as well. As for telecom companies, this segment provides fresh line of services for revenue generation and gaining market share.

Mobile money services have been on the rise in recent times in Iraq. Despite internal turmoil due to civil war, the country still has a functioning mobile network across many areas. However, banking population in Iraq is pretty low and cash transactions are dominant. Key mobile operators in the country include Zain Iraq, Asiacell and Korek Telecom. The first two have ventured into mobile payment segment this year.

International communication company Ooredoo partnered with mobile financial service provider Mahindra Comviva to launch mobile money service AsiaHawalain the beginning of 2016. It was launched in Asiacell network which is a part of Ooredoo group and had been licensed by Central Bank of Iraq. The service has been made available at 1,600 locations across the country. It uses USSD channel, andit is available to 10.6 million Asiacell customers which constitutes 28% of the entire population.

Followed by this, Zain Iraq launched its own mobile money service 'Zain Cash' offered by Iraq Wallet in collaboration with eServGlobal. As part of agreement, eServGlobalwill provide complete mobile money and electronic voucher distribution solutions across Zain’s operation. The mobile wallet is linked to consumer SIM card, making transactions convenient and fast. Further developments were made towards Zain Cash service by addition of online payment solution during August 2016. New payment tool will allow merchants to accept online payments through website and mobile apps. Zain has a customer base of 11.2 million and a 3G mobile network; it is expected to attract younger generation and boost its new service line.