Visa, Mastercard launch international card payments in Syria after US lifts terrorism designation

Visa and Mastercard initiated their inaugural international card payments in Syria on Wednesday, marking a significant step in the nation's reconnection with global payment networks following Washington's removal of Syria from its state sponsors of terrorism list. This development, occurring shortly after the US lifted the designation on Monday, underscores the rapid reintegration of Syria into the global financial system after years of sanctions and isolation.

During the test, Syrian President Ahmed al-Sharaa made a card payment at a restaurant in Damascus' historic Old City, as evidenced by a video released by the country's state-run Syrian Response. Central Bank Governor Mohammed Safwat Raslan was present alongside him. The Central Bank of Syria announced to Reuters that the transactions signaled the beginning of international card payment services in the country, following months of technical preparations and testing.

However, the service has not yet achieved nationwide coverage. The transactions arrived just two days after the US officially removed Syria from its list of state sponsors of terrorism, a designation imposed in 1979 that had long deterred international banks and investors. Washington had dismantled its broader sanctions program against Syria in December 2023, retaining targeted measures against former President Bashar al-Assad, his associates, rights abusers, drug traffickers, affiliates of the Islamic State and Al Qaeda, and Iranian proxies.

Nonetheless, Syria's continued classification as a state sponsor of terrorism imposed restrictions on financial transactions and posed legal and compliance risks for banks considering operations in the country. Syrian Foreign Minister Asaad al-Shibani had previously told Reuters before the removal of this measure on Monday that Damascus anticipated lifting this last obstacle would reconnect Syria with the global financial and economic system, stimulating investment.

He stated, "There is no longer any obstacle to investment, doing business and rebuilding economic life in Syria." The Central Bank of Syria clarified that the launch of international Visa and Mastercard transactions was not contingent on a single event, as technical, regulatory, and compliance preparations had been underway for months.

However, they emphasized that the removal of restrictions and designations had enhanced the environment for international banks and financial technology companies. President al-Sharaa's government has prioritized restoring access to global finance and attracting foreign investment as a cornerstone of its economic strategy since seizing power from Assad in December 2024.

Visa expressed its intention to enable international visitors to utilize their cards while in Syria, positioning the test as a step towards wider international card acceptance. The transaction was executed in collaboration with Fransabank Lebanon as the acquiring financial institution and Paymera, a Syrian payments technology company owned by the state's sovereign fund.

The Central Bank of Syria aimed to restore correspondent banking relationships and broaden official channels for cross-border transfers and payments, though it offered no timeline for Syria's broader reintegration into the global financial system. It noted that fully restoring international banking relationships would necessitate ongoing work on compliance, governance, risk management, cybersecurity, and regulatory oversight, given years of limited links to the global system.