The Role of Digital Transformation in the Development of the Electronic Payment System in the Iraqi Economy

Abstract

Digital transformation in Iraq, especially in the field of electronic payments, has witnessed significant growth in recent years. This study examines the status and growth trend of electronic payments, including the use of ATMs, POS devices, e-wallets, and mobile payments, from 2018 to 2023. The results show that during this period, Iraq witnessed significant growth in the number of ATMs, POS devices, and e-wallets, with the number of ATMs, POS devices, and e-wallets reaching 4,021, 23,066, and 4.98 million in 2023. These changes reflect significant progress in digital infrastructure and the increasing use of electronic payment methods. However, challenges such as lack of digital skills, security issues, and cultural resistance to digital change continue to hinder the full adoption of these technologies. Nevertheless, the results suggest that this positive trend could lead to improved financial inclusion, easier access to financial services, and reduced reliance on liquidity. For these developments to continue, it is imperative that Iraq pay special attention to strengthening digital infrastructure, training in digital skills, and improving payment security. The study’s recommendations include strengthening public-private partnerships, raising public awareness of the benefits of electronic payments, and developing new financial tools to facilitate the transformation of the financial sector in Iraq.