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.

1. Mobile payment is expected to grow strongly in Iraq
over the next five years
Analyst View Point Series

2. Table of Contents
Market Context
Key Insights

3. Market Context
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.

4. Key Insights
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.

5. Key Insights
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.

6. Key Insights
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.

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