Uzbekistan has announced that Apple Pay and Google Pay are joining its banking system, following changes to its personal data law and high-level talks with Google, Finextra reports. The central bank also plans to add the domestic Uzcard and HUMO networks, without a timetable. The announcement was made by Saida Mirziyoyeva, head of the presidential administration. The move is part of a fintech strategy launched in September, with plans for cross-border payments and open banking.

What it means: The arrival of the two big companies' digital wallets in a country of about 37 million people shows that Central Asian markets are opening to international payment systems. The interesting detail is that the change required amending the data law, which evidently restricted transferring or processing payment data outside the country. Adding the domestic card networks will be the key step for mass use, because they dominate everyday transactions. For Greek businesses the direct link is limited, but there are two practical consequences. Visitors from the region, a growing group in Greek tourism, will find it easier to pay by phone once their cards are linked to the wallets. Exporters and software firms active in Central Asia also gain more ways to collect payments. The case further confirms that the international spread of digital wallets increasingly depends on data laws and negotiations with governments, much as in Europe with the debate over third-party access to phones' NFC chips.

Read the original on Finextra

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