Infomedia now offers DCB connectivity in Iraq - a fertile and growing market for online service and e-commerce

Iraq has experienced significant strides in technology adoption in recent years, particularly in mobile phone usage and e-commerce where smartphone penetration and internet accessibility has improved, and the availability of 3G and 4G networks offer faster and more reliable connectivity.

By the end of 2023, Iraq’s mobile phone penetration exceeded 90% of the population (Iraqi Communications and Media Commission) and recent data also shows that over 60% of Iraqis have regular access to the internet via mobile devices.

This widespread adoption of mobile phones has empowered individuals across all demographics and provided a solid foundation for the development of mobile-based services and applications, including mobile banking and payment systems.

It has set the stage for the growth of DCB and enabled Infomedia to offer DCB connectivity across Iraq. Providing seamless integration with mobile usage, customers can make purchases directly through their phone without needing traditional banking services.

E-commerce growth in Iraq

Parallel to the growth in mobile phone usage, Iraq has seen a significant rise in e-commerce activity and major cities like Baghdad, Erbil, and Basra have seen an explosion of e-commerce platforms offering diverse products and services.

The convenience of online shopping, coupled with improving internet services, has encouraged more consumers and businesses to engage in digital commerce and this has been supported by an improvement in the logistical and payment infrastructures which once created significant hurdles.

The COVID-19 pandemic has also accelerated the shift towards online commerce and access to services, and with a youthful population (median age of 20) it’s perhaps not surprising that more and more Iraqis are embracing digital technology.

Key Challenge: Concerns around Cyber security and Online Payment Security

Despite these advancements, challenges still persist, particularly regarding the widespread acceptance and use of traditional online payment methods, such as credit cards, which are not as prevalent in Iraq due to limited banking penetration (only 20% at the start of 2023 according to Ipsos) and concerns over security.

The low credit card penetration continues to place reliance on cash-on-delivery and there are infrastructure challenges related to cybersecurity.

New Government initiatives and industry efforts are beginning to make strides to strengthen cybersecurity regulations and enhance consumer education.It is clear however, that ensuring consumers awareness and understanding of how to use DCB will be key to its adoption going forward.

DCB: The Ideal Solution 

Direct Carrier Billing provides an ideal solution to many of the above challenges as it allows consumers to bypass traditional payment barriers. Since purchases are charged directly to the consumer’s mobile phone bill, there is no need for a credit card or even a bank account, making it an extremely accessible option for the vast majority of Iraqis.

Moreover, DCB offers a layer of security that is appealing in a market where concern over online fraud and financial security is high. The payment process does not require sharing sensitive personal information such as bank account or credit card details, or even name and address, reducing the risk of financial data or personal security being compromised.

How can DCB via Infomedia help?

Infomedia work hand in hand with mobile network operators and government cyber security initiatives to ensure a best-in-class international standard cybersecurity.

Perfect for low credit card penetration and unbanked populations, our DCB service enables access to online government services and permits.

With a bespoke, self-service customer service portal, regulator risks are minimised and users can enjoy a smooth checkout experience featuring header enrichment technology.

What’s more, DCB encourages the development of localised content services.

As Iraq continues to advance technologically, the integration of convenient, secure payment methods like DCB could not only drive further growth in e-commerce but also empower more Iraqis to participate in the digital economy, fostering broader economic development and inclusion. As such, DCB stands out not just as a payment solution, but as a significant enabler ofIraq’s digital transformation.

To get in touch and find out more, contact us on info@infomedia.co.uk