We’ve already gone through the different Mobile Payment Systems available in Iraq and how they have become popular. Now, we want to show you the ways that mobile payment is helping Iraqi companies and why you should consider integrating them into your business.
There is no one-size-fits-all answer when it comes to the best way to navigate the complex Iraqi payment infrastructure. The country suffers from low financial inclusion and lack of financial education, which leaves many customers and business owners in the dark about the benefits of digital payment systems. However, there are a few general tips that can help make the process easier.
- First, it is important to understand all of your options and what each one entails.
- Second, be sure to shop around for the best rates and terms before making any decisions, and always remember to read the fine print carefully before agreeing to anything.
- And finally, understand how you can utilise all the benefits that these payment methods provide.
A Payment Gateway
For many companies in Iraq, the online market is an enticing opportunity to grow their business. Some businesses even work exclusively online, whether they are selling handmade products on Instagram or have their own e-commerce platform.
Mobile payment services offer a fast and convenient way to get paid for your products and pay for the services you use. This can help free up your cash flow so you can invest it back into your business. Setting up an account is easy and fast. So if you’re looking for a way to take your company to the next level, consider mobile payments.
When it comes to choosing a mobile payment provider, it’s important to read the fine print and assess the best option for your business. Each provider has its own terms and conditions under the supervision of the Iraqi Central Bank. Make sure you understand all of the fees and charges associated with each service before making a decision.
Tracking/Recording of Expenses
During the Covid-19 pandemic, many Iraqi businesses struggled or were forced to shut down. At the time, the Iraqi government and non-governmental organisations gave out aid packages to help struggling businesses stay afloat. Unfortunately, many businesses did not have good financial records, which made it difficult to determine who the funds should go to. That, of course, is the result of poor financial management. Mobile payment systems can be useful here as they offer payment tracking for a complete overview of your cash flow.
As a cash-based economy, most small- to medium-sized businesses in Iraq primarily use cash. This can be a hassle for companies that hire remote employees, as salaries are often paid through wire transfers with local money transfer agencies.
Some mobile payment systems offer salary payment features which makes things much easier for employees. With these systems, employees can get paid on time without any hassle. So if you’re ever in Iraq and need to get paid by a company, be sure to ask if they use a mobile payment system!
Secure Way To Store Funds
Companies usually tend to keep their funds in banks and other trusted financial institutions. They may only hold enough cash in hand to sustain their daily operations, which can cause a shortage of cash if there is not good money management. This might force them to go to the bank and take out more cash, causing unnecessary delays.
Mobile payment systems can store the necessary cash that companies need in an easily accessible way for receivers. Some mobile payment systems even enable you to connect your bank account to the wallet, so whenever you need cash you can just transfer it from your account into the wallet. The receiver can then cash it out at the nearest agent.
You may ask, why not just go to an ATM and cash out instead of going to the bank? Unfortunately, Iraq has one of the lowest ATM per capita ratios in the region with only 5.35 ATMs per 100,000 people, and the banks rarely put ATMs in places other than malls or their branches. Using an ATM that doesn’t belong to your bank will result in high fees and oftentimes, ATMs run out of money – especially after payday!
It’s worth mentioning that the funds in mobile payment systems are guaranteed by the Iraqi Central Bank, so you won’t have to worry about not trusting these services.
The world of finance is all about speed, and every company should prioritise faster monetary transactions. Mobile payments offer near-instantaneous monetary transactions with limits on the size of these transactions depending on the size of the company or institution. This means that companies can save time and money by using mobile payments instead of traditional methods like checks or wire transfers.