Aiming to boost Iran’s economy
According to the Iranian media, Iran would start issuing credit cards for the first time after decades. It will take some time till the locals are fully introduced and comfortable with the card system and banks. The cards would be for domestic use only and it will not be partnered with any of the major international card company. The cards can be used for purchasing goods and services on Iran’s online shopping websites.
The Iran’s Central Bank would fix the credit limits and fee percentages.
Encourage Public Spending
The cards will come in three set credit limit amounts. With a top tier of 50 million rials. Accounts that are not paid within a month will be subject to an 18 percent annual interest rate charge.
Only debit and prepaid cards have been issues by the Iranian banks.
Credit cards are certainly a new experience for Iran, 80 million of the republic population are familiar with the usage of debit and prepaid cards.
After decades of sanctions against the country were lifted at the beginning of the year, Iran’s financial institutions are trying to adjust
The move comes to improve last summer’s landmark nuclear deal that brought the lifting of international economic sanctions.
Image Credit: financialexpress