Qi Card: Iraq’s Innovative Step toward a Cashless Economy

The Qi Card. described as the national credit card of Iraq, it is a very revolutionary method of payment which changed the lives of millions of Iraqi people-from receiving payments by the government to spending everyday life. This technological and infrastructural advancement by two major state banks, namely Rafidain Bank and Rasheed Bank, and this innovation has transformed itself to become a lifeline of Iraq’s 9 million card holders. It signifies that this country, after facing severe devastation due to a prolonged war, now wants to move ahead to have its financial inclusion on digital platform.

The Qi Card, also called the “ISC” or “International Smart Card,” is a debit card tailored for the Iraqi market and built to accommodate a variety of infrastructure-related issues, including limited access to the internet. Known as the “key” to this country, the name is actually a reversal of the country’s ISO 3166 country code, IQ. The useful innovation enables Iraqis to obtain cashless payment facilities, one of the fundamental features in a country where cash was traditionally the preferred medium of exchange.

The Qi Card, which was initiated in 2008, has rapidly expanded in reach and influence. To this date, the card has reached over 9 million users by 2021, and its appeal and utility among the city and remote populations with limited connectivity are highly appreciated. As of now, the capital behind the Qi Card amounts to more than 85 billion Iraqi dinars, reflecting tremendous investments into the development of digital payment capabilities in Iraq.

Perhaps the most innovative feature of the Qi Card is its capability to work offline. Given that stable internet is not always readily available in a country, especially outside of major cities or in areas affected by conflict, a Qi Card can verify the data of balances and transactions and then process it offline without maintaining a constant direct connection to a central server. This independence from the traditional online banking infrastructure makes it unique, hence making the Qi Card accessible and reliable to users all over Iraq. The offline model of the Qi Card also saves retail and government offices operational expenses since they can use point-of-sale systems that do not require constant internet access. This design promotes financial inclusion, especially for those people who could not access and use traditional banking services based on technological limitations.

As an innovation for safe, accessible, and cashless financial transactions, the International Smart Card (ISC) of the collaboration between Iraq’s two leading state banks, Rafidain and Rasheed, and the Iraqi Electronic Payment System (IEPS), created the Qi Card. In its initial phases, Qi Card targeted efficiency and security in government pension and salary disbursements. Today, it enables a large range of services from consumer purchases to money transfers and remittances abroad.

It was quite a while before the Qi Card system could reach even the remotest areas in Iraq, but within two years after the launch of the system, by 2010, the Qi Card had already issued over 1.6 million cards. Such strong demand for digital banking tools left the company poised to make explosive growth with a goal to install as many as 30,000 POS units by 2015 across various retail locations in Iraq.

To the Iraqis, the Qi card has not only simplified and facilitated financial transactions but also increased economic stability. It makes direct government disbursement easier by eliminating the handling of cash, which could be lost or embezzled. Its role in supporting pensioners, government employees, or other citizens has been paramount in providing secure access and reducing the logistical burden associated with banks.

As the economy and technological landscape of Iraq continues to change, so does the Qi Card. Plans are underway to expand services to meet the needs of a broader spectrum of personal finance and business needs. In addition to expanding its POS network, Qi Card is exploring partnerships and technology upgrades to introduce more financial services, including online banking options. These are developments reflecting an increasingly digital Iraq where people rely on modern financial tools that suit their lifestyle and regional challenges.

Future development may include adding mobile banking capabilities and improvement in cybersecurity measures to remain in tandem with international digital finance standards. Continuing down the paths of accessibility, security, and efficiency, the Qi Card is in a prime position to take the lead for Iraq’s digital financial future.