Following years of international sanctions and internal strife, Syria has successfully trialed electronic payments using Mastercard and Visa.
Reconnecting to these networks is no small feat. Visa previously stated that it would need to build substantial infrastructure to connect Syria’s financial institutions to its network and bring issued cards up to modern standards. This includes security features such as EMV chips and tokenization, as well as digital capabilities like integration with digital wallets.
The Visa and Mastercard payment trials were conducted in Damascus at an event hosted by Syria’s Ministry of Communications and Information Technology. The goal of the integration is to connect to the payments giants’ global systems, spur financial inclusion for consumers, and provide a boost to small businesses.
Small Business Beneficiaries
Syria’s economy was severely impacted after former President Bashar al-Assad launched a crackdown on anti-government protests, triggering international backlash. Many countries imposed sanctions on Syria and its central bank. Combined with the effects of the subsequent conflict, key segments of the country’s infrastructure were destroyed and many financial institutions were left isolated.
Although some sanctions were lifted following al-Assad’s removal from office last year, Syria still faces a long road to recovery. Small businesses were among the hardest hit by the sanctions, making them key potential beneficiaries of the Visa and Mastercard integration.
Beyond enabling more efficient payments, both networks also offer a wide range of tools for small businesses. For example, Visa’s services span everything from tap-to-phone payment solutions to credit card dispute management tools.
The Global Digital Economy
The payments giants’ expansion into Syria is expected to bring much-needed infrastructure to a recovering economy. However, it comes at a time when many regions are increasingly questioning the dominance of Visa and Mastercard.
For instance, the European Central Bank raised concerns that these U.S.-based networks process over 60% of card transactions in Europe, and has signaled plans to strengthen regional payment systems to reduce reliance on them.
While these efforts reflect broader geopolitical and economic considerations, reducing dependence on Visa and Mastercard remains challenging. Much of their reliance stems from the same dynamic now drawing Syria into their networks. Connecting to these systems means access to deeply embedded global financial infrastructure and the wider digital economy.
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