Visa's and Mastercard's latest move signals early steps toward rebuilding a digital payments system amid major structural hurdles.
Visa and Mastercard announced their return to Syria last month after 15 years away, marking a milestone for the country’s recovering financial sector.
“We see strong long-term potential for Syria to build a modern, digital-first payments ecosystem aligned with global standards, with the opportunity to leapfrog legacy infrastructure,” says Leila Serhan, senior vice president and group country manager for North Africa, Levant & Pakistan at Visa.
The first transactions were processed through Paymera, a new payment network established by the Syrian Ministry of Telecoms. Despite the symbolic breakthrough, Syria, still rebuilding after a devastating civil war, remains overwhelmingly cash-based.
In Old Damascus, Jihad Baroud, manager of Beit Zafran hotel, hopes that will soon change. “When card payments become available again, I expect it will make stays more convenient for international guests and help us attract more visitors,” he says.
Structural Barriers Remain
Analysts caution that the return of international payment networks is only an early step.
“The first public transaction was only a trial, not a sign that card payments are normal across Syria,” comments Benjamin Feve, senior research analyst at Karam Shaar Advisory Ltd, a New Zealand-based consultancy.
Feve points to major obstacles, including a lack of public trust in banks, limited POS infrastructure, fluctuating exchange rates, poor internet connectivity, and frequent power cuts. “So yes, Visa and Mastercard can technically operate in Syria, but what’s more important is, Can Syrian banks, merchants, consumers, and foreign banks use the system confidently?”
The potential market is significant. Syria’s population of around 25 million is estimated to be 80% to 90% unbanked, creating opportunities for digital payments, remittances, and new financial services.
Most sanctions on Damascus have been lifted since the fall of Bashar al-Assad’s regime in December 2024. Still, Syria remains on the Financial Action Task Force’s gray list and the U.S. list of state sponsors of terrorism.
“Even if sanctions are eased, Syria is still far from being able to receive transactions in U.S. dollars or euros,” Feve notes. “Foreign banks are extremely cautious because Syria remains a high-risk jurisdiction, so compliance departments really worry about AML/CFT [anti-money laundering and countering the financing of terrorism] compliance, beneficial ownership, document quality, and reputational risks.”
The immediate impact, then, may be limited. But the return of Visa and Mastercard sends a political signal that some major global financial institutions are ready to re-engage with Syria.
