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Recently, it was announced that the government of Uzbekistan has instructed the Central Bank, in collaboration with the Ministry of Digital Technologies and the Tourism Committee, to initiate negotiations with global online payment giants such as PayPal, Alipay, UniPay, Apple Pay, and Google Pay. The goal is to integrate these payment systems into the country’s economy so that citizens of Uzbekistan can use them seamlessly for purchasing goods and services.
By the end of 2024, the plan is not only to discuss the terms of these companies’ operations in Uzbekistan but also to consider potential amendments to national legislation to simplify their activities in the country. However, the question arises: why are these payment systems still not available to Uzbek citizens?
The Root of the Problem
Renowned digital security expert Shukhrat Kurbanov explained that Apple Pay and Google Pay have been operational in Uzbekistan for some time but only for tourists. Since the end of 2019, travelers whose bank cards were issued in countries where these payment systems are already integrated have been able to use them without any problems for payments in Uzbekistan. Unfortunately, these services remain inaccessible for local citizens.
The main reason for the restrictions on local users is Article 27-1 of the Law on Personal Data, which establishes special conditions for processing the personal data of Uzbek citizens. According to the law, personal data of the country’s citizens must be processed within Uzbekistan, which implies the need for server infrastructure located on the territory of the country. This requirement, as Shukhrat Kurbanov explains, has become the main obstacle to the integration of international payment systems.
Major companies like Google and Apple are not willing to set up servers in Uzbekistan just to ensure that their services work in the country. However, Kurbanov believes that this requirement is unnecessary. In fact, payment systems like Apple Pay and Google Pay do not transmit personal data beyond what is already shared when registering an email or using other online services. Therefore, setting up servers in Uzbekistan is not essential.
Kurbanov also added that amending the personal data law is not required. It would be sufficient to thoroughly examine how Google Pay and Apple Pay function and clarify that having servers in Uzbekistan is not necessary. This would help remove unnecessary barriers to the introduction of modern payment technologies.
The expert noted that similar discussions and negotiations have already taken place several times but have yet to lead to real changes.
What’s Next?
It’s worth mentioning that the integration of global payment systems such as Apple Pay and Google Pay remains a pressing issue for Uzbek citizens. With the growth of tourism and efforts to digitize the economy, these systems could greatly simplify life for residents and enhance convenience for tourists. However, legislative and technical barriers must be addressed, and a compromise between international companies and national regulators must be found.
The question remains: will these negotiations be successful, or will they once again remain at the discussion stage?
The article may contain inaccuracies as it is translated by AI. For more details, please refer to the Russian version of the article. If you notice any inaccuracies, you can send corrections via the Telegram bot: Uzvaibik_bot.
