Visa and Mastercard have completed the first international card transactions inside Syria in more than 15 years, marking an initial step toward reconnecting the country to global payment networks. The development reflects improving financial access following U.S. policy changes, but broader reintegration will still depend on correspondent banking, regulatory compliance, and international institutional confidence.
In a country where Syrians have long relied on cash for even the most basic daily transactions, Syria witnessed two developments on August 26 and 27 that carried significance beyond the payment transactions themselves.
Visa and Mastercard, in separate transactions, conducted the first international card payments inside Syria in more than 15 years, marking a step toward reconnecting the country, at least partially, to global payment networks.
On August 24, U.S. Secretary of State Marco Rubio formally ended Syria’s designation as a State Sponsor of Terrorism, a designation that had remained in place since 1979. The decision followed the expiration of the 45-day congressional review period and took effect immediately.
Two Closely Timed Transactions
On August 26, Visa announced that it had conducted its first live international card transaction in Syria in cooperation with Lebanon’s Fransabank, acting as the acquiring financial institution, and Syrian electronic-payment company Paymera, which is owned by the Syrian Sovereign Fund, according to Reuters.
Syrian President Ahmad al-Sharaa participated in the test by making a Visa card payment at a restaurant in Old Damascus, in the presence of Central Bank of Syria Governor Mohammad Safwat Raslan.
Mastercard and QNB Group, the Qatar-based banking group, also announced the completion of the first fully integrated international payment transaction in Syria following the technical reconnection of Syria’s payments ecosystem to Mastercard’s global network. The transaction was processed through QNB Syria using an international Mastercard at an approved local merchant.
Statements issued by the companies indicate that each transaction was conducted independently, using different banking and technology partners. QNB Syria plans to follow a phased expansion approach, gradually onboarding eligible merchants subject to regulatory requirements and approvals, according to information published by QNB Group.
Legal Barriers and Compliance Risks
International card services were absent from Syria for 15 years not because of a technical obstacle, but because of legal and regulatory barriers. According to Reuters, Syria’s designation as a State Sponsor of Terrorism from 1979 until August 24, 2026, served as a major deterrent for international financial institutions.
Even after Washington terminated its comprehensive Syria sanctions program in July 2025 and the Caesar Act was subsequently repealed in December of the same year, while targeted sanctions against specific individuals and entities remained in place, Syria’s terrorism designation continued to create legal and compliance risks for banks considering engagement with the Syrian market.
The Central Bank of Syria, in comments reported by Reuters, explained that the launch of Visa and Mastercard international transactions was not tied to a single event and that technical and regulatory preparations had begun months earlier. However, the removal of restrictions and designations improved the operating environment for international banks and financial-technology companies.
What Does This Mean in Practice?
According to official information from the Central Bank of Syria, the service in its current phase allows eligible merchants in Syria—including hotels, restaurants, and government entities—to accept international payments through Visa and Mastercard. For foreign visitors, this means being able to use their international cards while in Syria.
The service, however, has not yet reached nationwide coverage. According to the Central Bank, expansion will be gradual and subject to regulatory approvals. Significant challenges also remain, particularly the limited availability of correspondent banking relationships. The Central Bank is working to rebuild these relationships and expand formal channels for cross-border transfers and payments, but it has not provided a timetable for Syria’s broader reintegration into the global financial system.
Targeted U.S. sanctions against certain individuals and entities also remain in effect, limiting the scope of permissible financial transactions. The Central Bank has further indicated that geographic coverage remains limited, with the service currently available only at selected merchants rather than across the country.
What Role Does U.S. Policy Play?
The transactions came just two days after the U.S. State Department formally removed Syria from the State Sponsors of Terrorism list on August 24, following the completion of the congressional review period without objection.
On the same day, the State Department rescinded the Specially Designated Global Terrorist designation of al-Nusra Front, also known as Hayat Tahrir al-Sham, while the Treasury Department’s Office of Foreign Assets Control (OFAC) removed the group from the Specially Designated Nationals and Blocked Persons List, known as the SDN List, and revoked General License 25 after it was no longer necessary.
Syrian President Ahmad al-Sharaa described the decision as “historic,” saying in a video address that Syria was shedding a dark stigma and closing a chapter of its past as it prepared to move toward development and reconstruction.
Before the decision was issued, Syrian Foreign Minister Asaad al-Shaibani had described the designation as the “last obstacle” to reconnecting Syria with the global financial and economic systems and encouraging investment. He argued that the designation was tied to the policies of the former regime rather than the choices of the Syrian people, and said its removal reflected the transformation led by Syrians and the new government’s commitment to cooperation with the international community. He added that there was “no longer any obstacle to investment, doing business, and rebuilding economic life in Syria.”
Early signs of international institutional interest in the Syrian market have also emerged. On August 12, Syria’s Ministry of Finance, led by Finance Minister Mohammad Yusr Barniyeh, held a virtual meeting with senior Bank of America executives to discuss areas of mutual interest, potential cooperation, and financial reintegration.
Syria’s designation as a State Sponsor of Terrorism carried four major categories of U.S. restrictions, including limitations on foreign assistance and defense exports and sales, tighter controls on dual-use items, and additional financial and commercial restrictions. It also required Washington to oppose certain lending to designated states through the World Bank and other international financial institutions.
Policy Relevance
The return of international card payments is an early indicator of Syria’s gradual financial reconnection, but it should not be interpreted as full reintegration into the international banking system. The immediate development is merchant-level payment access; the broader policy question concerns whether international banks will rebuild correspondent relationships and expand formal financial channels with Syria.
For congressional review, the key indicators will include the pace of correspondent banking restoration, the ability of Syrian institutions to meet compliance and regulatory expectations, the continued enforcement of targeted U.S. sanctions, and whether greater financial access translates into legitimate trade, investment, and economic recovery.
The decision, however, does not mean that international capital and investment will automatically flow into Syria. According to banking sources, companies and financial institutions will need to update their legal risk assessments, conduct due diligence on Syrian counterparties, and ensure that they are not connected to individuals or networks that remain subject to sanctions.
The importance of the decision lies in the fact that it completes a series of earlier steps. Washington terminated its comprehensive sanctions program in July 2025, followed by the repeal of the Caesar Act in December of the same year, while the State Sponsor of Terrorism designation remained an independent source of risk that continued to discourage investors and financial institutions from engaging with Syria.
With the designation removed, the legal basis for restrictions arising solely from that status is also removed, creating additional space for financial cooperation, assistance, and investment. Banking sources nevertheless caution against anticipating immediate results. Reconnecting to global payment networks is an important first step, but full integration into the international financial system will require rebuilding correspondent banking relationships with global banks—a process that may take time.
By Tony Bassmaji