‘Visa Direct’: A New Era of Digital Financial Transfers in Iraq, 4 NOV

 ‘Visa Direct’: A New Era of Digital Financial Transfers in Iraq, 4 NOV

The Central Bank of Iraq, in a strategic collaboration with the First Bank of Iraq and Visa, has rolled out the ‘Visa Direct’ service, a novel initiative aimed at enhancing digital financial transfers. This service is designed to ease the business operations of small merchants and assist in curbing the exchange rate in the parallel market, thereby aligning with the government’s vision for financial, banking, and economic management.

The ‘Visa Direct’ Service: A Boon for Small Merchants

The ‘Visa Direct’ service empowers customers to transfer up to five million dinars daily and 13 million dinars monthly at the official exchange rate. This provision not only facilitates small merchants with a streamlined and effective transaction process, but also aids in solidifying the currency and reducing the discrepancy between the fixed exchange rate and the parallel rate.

Modernizing the Financial Sector

Launching the ‘Visa Direct’ service is a move towards the digitization and modernization of the financial sector in Iraq. By promoting digital financial transfers, this service aims at improving financial inclusion and broadening access to banking services, particularly for small merchants who might not have direct access to traditional banking services.

Addressing Exchange Rate Volatility

The ‘Visa Direct’ service has the potential to minimize dependence on the parallel market and mitigate exchange rate fluctuations. By offering a safe and efficient platform for digital transfers, the ‘Visa Direct’ service may help diminish the demand for foreign currency in the parallel market and contribute to stabilizing the exchange rate.

Success Factors and Challenges

The success of the ‘Visa Direct’ service hinges on several factors. It requires widespread adoption and usage by merchants and customers. This will demand effective marketing and public education about the service’s benefits and convenience. Additionally, the service must address potential challenges related to security and fraud prevention. As digital transactions gain momentum, it becomes imperative to have robust security measures to safeguard financial information and assets of individuals and businesses.

https://bnn.network/finance-nav/visa-direct-a-new-era-of-digital-financial-transfers-in-iraq/