Securities: Electronic payment outlets are witnessing significant progress

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[size=52]Securities: Electronic payment outlets are witnessing significant progress[/size]

[size=45]The Securities Commission announced today, Thursday, that electronic payment outlets have achieved significant progress in their work over the past 9 months, and while it indicated that the government has taken measures to reduce the withholding rate, it clarified the tasks of the National Electronic Payment Company.[/size]
[size=45]The head of the authority, Faisal Al-Haims, said, “The trend towards electronic payment began with the efforts of Prime Minister Muhammad Shiaa Al-Sudani, as the government granted a time limit to achieve this in government departments, and then it will be circulated to all economic activities that affect the citizen’s condition,” noting, “A continuous increase has been recorded.” With electronic payment outlets and means throughout Iraq during the past 9 months, which is tangible progress and a positive indicator.”[/size]
[size=45]He added, “The issue continues and escalates and is gaining momentum, but it needs time,” explaining that “the beginning of the electronic payment phase is going on the right path.”[/size]
[size=45]He stated, “The majority of government departments use electronic payment methods,” pointing out that “the government has taken measures to reduce the withholding rate in the electronic payment process, and the bank also continues to audit and monitor payment companies.”[/size]
[size=45]He stated, “There are 16 electronic payment companies in Iraq, some of which are owned by banks,” pointing out that “the multiplicity of companies is positive and generates competition.”[/size]
[size=45]He stated, “The National Electronic Payment Company, which was approved by the Council of Ministers, will act as the SWITCH that will govern the companies’ businesses, so that beneficiary data and all electronic payment companies’ operations pass through this company.”[/size]
[size=45]In its session held last Tuesday, the Council of Ministers approved the following:
1. (The holder shall bear electronic payment commissions from the private and public sectors, and the payer shall not bear any electronic payment commissions), and the government shall compensate a percentage (50%) of the electronic payment commissions paid by the holder ( The merchant, the employer, and all private sector entities), provided that it is used to pay the holder’s obligations to the state exclusively through electronic payment, such as renewing licenses, paying taxes, customs, fees, municipal fees, electricity fees, and everything owed to the state, and it cannot be recovered in cash under any circumstances.
2. Determine all electronic payment commissions (at a percentage determined by the Central Bank of Iraq), with a maximum commission limit that stops at a commission amount (the value of which is determined by the Central Bank of Iraq for both the public and private sectors) and what exceeds that without commissions, and a minimum that is exempt from commissions as well ( Exempting small transactions in the public and private sectors from commissions up to a ceiling determined by the Central Bank of Iraq.
3. The contracts signed based on what was stated in the decisions of the Council of Ministers related to electronic payment, especially the decisions of the Council of Ministers (23044 and 23620 of 2023) between state institutions and electronic payment companies, will continue to be enforceable until December 31, 2024, and the contracting institution may submit a reasoned request to the Central Bank of Iraq in If she wishes not to extend the approval process.
4. The decision will be re-evaluated in light of the results of the application before the end of this year 2024.[/size]
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