A simple cup of coffee is signaling Syria’s reconnection with the world of modern payments after 15 years in the wilderness. Syrian President Ahmed al-Sharaa paid for the coffee with a Visa card, marking the country’s first credit card payment since worldwide sanctions were imposed on the previous regime.
Visa also announced that it has successfully tested a live international card transaction in Syria, an important step toward allowing visitors to use their Visa cards within the country. Visa worked alongside the Central Bank of Syria and partners Fransabank Lebanon and Paymera to carry out the transaction.
Mastercard’s global network has also reconnected to the country’s payments ecosystem. Mastercard and QNB Syria announced they had processed an international card payment for the first time in more than 15 years.
The Road Back From Sanctions
Syria has been disconnected from global finance since President Bashar al-Assad’s crackdown on anti-government protests in 2011 prompted sweeping sanctions from Western states. The sanctions, paired with the effects of the conflict, damaged the country’s infrastructure and industrial base, reducing the economy to less than a third of its 2011 value.
Following Assad’s removal from office last year, the U.S. and European governments eased their economic restrictions on Syria. The U.S. Treasury has since confirmed that American financial institutions may service Syrian clients, process payments involving Syrian banks, and establish correspondent banking relationships.
Small businesses in Syria were among the hardest hit by the sanctions, making the Damascus coffee shop a key symbol of the road to fiscal recovery. Beyond enabling more efficient payments, both Visa and Mastercard are offering a wide range of tools for the area’s small businesses. Visa’s services span from tap-to-phone payment solutions to credit card dispute management tools.
Visa previously stated 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.
Super Apps Also on the Way
As the nation re-enters the global financial system, Syria is also getting its first super apps, two start-ups that are plugged into the international payments ecosystem. My Syria and Labby are both mobile platforms that integrate services such as payments, transportation, and e-commerce into a single ecosystem.
Labby also bundles services like ride-hailing, food delivery, e-commerce, and digital payments on its platform. My Syria focuses on property management and short-term rentals in the hospitality space.