How do people in Iraq pay online?
Cash on delivery leads. The World Bank’s Global Findex survey found that 13.83% of Iraqi adults used a phone or the internet to buy something online in 2024. Of all adults, 7.68% paid cash on delivery for an online purchase and 6.16% paid online. Digital payment is growing from a low base: in 2021 only 2.08% paid online, against 18.52% who paid on delivery.
Bank accounts are spreading. Findex puts account ownership at 30.16% of adults in 2024, up from 18.57% in 2021. Debit card ownership rose from 9.76% to 23.82% over the same period, and 11.86% of adults had a mobile money account in 2024. A statement by the Baghdad Council for Digital Transformation and Iraqi E-Payment, reported by Shafaq News in August 2025, put the number of active bank cards above 10 million.
Qi Card is the largest card name. Also known as the International Smart Card, it was set up in 2007 as a partnership between the public and private sectors, with Al-Rafidain Bank on the public side, and its first card was built for government employees, retirees and social security beneficiaries. It calls itself the largest card issuer and acquirer in Iraq, works with Mastercard, Visa, UPI and UnionPay, and offers merchants an online payment gateway.
Wallets reach people without cards. Iraq Wallet launched Pay with ZainCash in 2016, letting sellers take payments on their websites and apps from Zain mobile customers. FastPay, AsiaPay and NassWallet are other wallets, and IraqTech counted 17 licensed payment service companies in 2023.
What rules shape online payments in Iraq?
There is no VAT. PwC’s summary of Iraqi taxes lists a sales tax instead of VAT, at rates that include 20% on mobile recharge cards and internet services, 15% on travel tickets and cars, and 10% on services at deluxe and first-class hotels and restaurants.
The dinar has an official rate and a market rate. The Central Bank of Iraq set the official exchange rate at IQD 1,300 per US dollar for the 2026 federal budget, the rate in place since February 2023. In June 2026 Peregraf reported that the market rate had reached IQD 155,500 per USD 100, more than IQD 23,000 above the official rate. Prices, settlement currency and refunds should state which rate applies.
Iraq is on the FATF grey list. In June 2026 the Financial Action Task Force added Iraq to its list of jurisdictions under increased monitoring, after Iraq made a high-level political commitment to work with the FATF and MENAFATF. The action plan includes better detection of informal money transfer services and a legislative framework for virtual asset service providers. The FATF does not call for enhanced due diligence on listed countries, but asks institutions to take the listing into account in their own risk analysis, so banks and providers may run extra checks on Iraqi flows.
The state is moving away from cash. In September 2025 Channel8 reported that the Central Bank of Iraq aimed to end cash payments in government and other institutions by July 2026, and that cash had already stopped in Ministry of Interior departments.
How would Omno route payments in Iraq?
A merchant would connect once and set routing rules per method, currency and customer group. In Iraq:
- Card pay-ins would be routed by BIN, so Qi Card and other Iraqi-issued cards go to a local acquirer and foreign cards go to an international acquirer, with cascading to the next provider in the rule if one is unavailable or rejects the request.
- Wallet pay-ins such as ZainCash would go to a provider that supports them, with the order held as pending until the wallet confirms payment.
- Currency rules would keep local methods in IQD and send USD-priced orders only to providers that settle in dollars.
- Google Pay would run in the hosted checkout, and the card behind each wallet payment would follow the same BIN rules.
Webhooks would report the final status of every payment, and the routing-decision log would show which provider handled each payment and why.
What should merchants plan for?
Plan for cash on delivery to stay for now. More Iraqi online shoppers still pay on delivery than online, so offer cards and wallets as the faster option rather than the only one.
Plan for a local partner. Qi Card and wallet payments are collected through Iraqi acquirers and licensed payment companies, so a foreign merchant needs a provider with a local licence and IQD settlement.
Plan for exchange rates. Decide whether to price in IQD or USD, and which rate applies to refunds, because the official and market rates differ.
Plan for compliance questions. With Iraq on the FATF grey list since June 2026, banks and providers may ask more about the business and its customers.