Timetric: Iranian banks conduct cross-border transactions with world banks

Iran has reintegrated itself with international financial messaging system, SWIFT, reopened payment flows from global players and initiated cashless economy for a  healthy growth of its payments market, according to a report from Timetric’s Cards and Payments Intelligence Center (CPIC).

Austrias Raiffeisen Bank International was the first bank to announce its plan to set up a branch in Iran after the sanctions were lifted. South Korea’s Woori Bank opened a representative office in May 2016. Similarly, the National Bank of Kazakhstan signed a memorandum of understanding (MoU) for the expansion of banking ties with Iran, in April 2016. MasterCard, Visa, Japan Credit Bureau (JCB) and China UnionPay (CUP) are also in negotiations with the central bank of Iran to start operations in the country.

Despite international sanctions, the country’s payment cards market continues to thrive, supported by government initiatives to promote electronic payments. Consumers are being charged supplementary fees for paying utility and mobile bills in cash. Many banks decline bill payments in cash, forcing consumers to use cards. Also in 2014, the central bank introduced new electronic cheques to replace the paper-based cheque system in the country.