Apple Pay Coming Soon to Iraq as Digital Payments Expand

ERBIL (Kurdistan24) - Apple Pay will soon be available in Iraq, Credit Bank of Iraq announced Friday via its website, opening the prospect of contactless payments through compatible Apple devices as the country's financial sector moves toward wider use of digital banking services.

The announcement means customers will be able to register eligible NBK cards on Apple devices and use them for electronic purchases where Apple Pay is supported. Credit Bank of Iraq, an Iraqi subsidiary of National Bank of Kuwait (NBK), operates branches in Baghdad, Basra and Erbil.

NBK already offers Apple Pay in markets including Kuwait and Bahrain.

The bank did not provide a specific launch date or details on participating cards, merchants, fees or transaction limits, so the announcement should not be understood as confirmation that Apple Pay is already operational nationwide.

Apple Pay Comes to Iraq

For Iraqi consumers, the planned introduction would bring an internationally established digital-payment platform into the country's increasingly evolving electronic payments environment.

The development also places Credit Bank of Iraq, which is majority-owned by NBK, at the center of a shift toward payment services that rely less on physical cash and more on digital transactions.

The announcement itself, however, does not establish a direct connection between Apple Pay and the broader U.S.-backed banking reform process.

Instead, the two developments illustrate different aspects of Iraq's financial modernization: the expansion of digital services for consumers and efforts to strengthen the regulatory and institutional foundations of the banking system.

Banking Reform Underway

The broader banking sector is undergoing a lengthy reform process led by the Central Bank of Iraq, with compliance, governance and transparency becoming increasingly important to international financial relationships.

The U.S. Treasury's Office of Terrorism and Financial Intelligence said in July that Iraqi banks could become eligible for reintegration into non-U.S.-dollar correspondent banking channels after completing the first phase of the Central Bank's reform program and meeting required compliance and governance standards.

Treasury said banks seeking eventual access to U.S.-dollar transactions would face additional requirements, including a satisfactory third-party compliance audit, a qualified institutional investor and international "fit and proper" standards.

The reforms are intended to improve the integrity and international connectivity of Iraq's banking sector, according to Treasury. They also reflect concerns that have prompted U.S. action against individual Iraqi banks and financial executives.

Why Some Iraqi Banks Faced U.S. Restrictions

The U.S. measures have targeted specific institutions and individuals that Washington says were involved in money laundering, sanctions evasion or financing Iran-aligned armed groups, rather than imposing a blanket restriction on Iraq's banking sector.

In January 2024, the U.S. Treasury identified Al-Huda Bank as a "primary money laundering concern," alleging that the institution had been used by Iran and its proxy groups to move funds and support terrorist organizations. Treasury said the bank's activities could divert resources away from legitimate Iraqi commerce and undermine the country's financial system.

Treasury has also accused Iraqi banking executives of using their positions to generate revenue and launder money for Iran's Islamic Revolutionary Guard Corps-Quds Force and Iran-aligned Iraqi militias, including Kata'ib Hizballah and Asa'ib Ahl al-Haq.

In 2025, Treasury said those individuals had exploited several Iraqi commercial banks for such purposes.

The concerns have a longer history. In an earlier case, Treasury said Al-Bilad Islamic Bank had been used to facilitate the movement of funds from Iran's Quds Force to Hezbollah, resulting in U.S. sanctions against the bank and its chairman.

Reuters has likewise reported that U.S. and Iraqi authorities have restricted a number of Iraqi banks from conducting U.S.-dollar transactions amid efforts to combat money laundering, dollar smuggling and sanctions evasion, while those institutions remain able to operate in other currencies.

US-Iraq Financial Cooperation

Against that backdrop, Washington has increasingly linked access to international financial channels with stronger banking controls.

The Treasury said in July that its cooperation with Baghdad is aimed at improving transparency and integrity while combating money laundering and illicit finance.

It also said that banks authorized to conduct international-currency transactions would have an opportunity to establish correspondent relationships with international financial institutions after meeting the required standards.

Treasury Secretary Scott Bessent made the broader relationship explicit during his July 16 meeting with Iraqi Prime Minister Ali Al-Zaidi, reaffirming U.S. cooperation with Baghdad and the Central Bank of Iraq to combat illicit finance and strengthen the country's financial sector.

The planned arrival of Apple Pay is separate from those regulatory measures, but it comes at a time when Iraq's banking system is seeking greater integration with modern digital and international financial infrastructure.

For consumers, the immediate significance is straightforward: a major global digital-payment service is preparing to enter the Iraqi market.

For the banking sector, the announcement comes amid a broader effort to build institutions capable of supporting more secure, transparent and internationally connected financial services.