A Baghdad Merchant's Confession: "I Turn Off the POS Terminal… Cash Is Safer, and My Money Takes Too Long to Reach My Bank Account!"
While the Iraqi government and the Central Bank of Iraq continue to promote the widespread adoption of Point-of-Sale (POS) systems and require businesses to install electronic payment terminals, the reality in Baghdad's markets—from Al-Shorja to Karrada—tells a different story.
Customers frequently hear familiar explanations such as "The terminal isn't working" or "The network is down." However, according to many merchants, the real reason often lies elsewhere.
In a candid interview, Abu Mohammed, the owner of a spare parts store in Baghdad's Sinak district, openly admitted:
"Yes, I switch off the POS terminal myself. I prefer cash. Why? Because it takes too long for the money to reach my bank account."
He continued:
"I'm a wholesale trader. I need liquidity every day to pay suppliers and purchase new inventory. When a customer pays by card, the money goes into the system, and I have to wait one or two days—sometimes even longer during public holidays—before it appears in my bank account. Cash in my hand is faster, more reliable, and gives me immediate control over my business."
His remarks highlight one of the most significant challenges facing Iraq's digital transformation. While awareness campaigns have succeeded in encouraging consumers to use payment cards, the financial infrastructure has yet to consistently provide instant settlement for merchants.
For small and medium-sized businesses that depend on rapid cash flow to replenish inventory and meet daily financial obligations, waiting up to 48 hours—or longer—to access their own funds can represent a serious commercial risk and disrupt normal operations.
The conclusion is both clear and challenging: financial technology cannot succeed through mandates or promotional campaigns alone. Unless banks and payment service providers address settlement delays and enable near-instant transfers to merchants' accounts, POS terminals may continue to sit idle on shop counters, while cash remains the preferred method of payment in Baghdad's markets.