Apple and Google have declined to integrate their payment systems into Uzbekistan due to a controversial law requiring personal data to be stored within the country’s borders. According to the Central Bank, the legislation is under review.
How does legislation pose a barrier?
Article 27-1 of the “On Personal Data” law, enacted in 2021, mandates that personal data of Uzbek citizens be stored on servers within Uzbekistan. This provision has been criticized by major IT companies and has complicated the entry of global payment systems into the country.
Negotiations with international companies
The Central Bank reports that multiple negotiations with Apple and Google were held in 2024. Both companies requested revisions to the “On Personal Data” law. Google prefers storing data using Cloud technologies, which does not align with existing legislation.
Government decisions and assignments
A government resolution on September 18 emphasized facilitating discussions with international payment systems by the end of 2024 and revising legislation if necessary. The Central Bank, the Ministry of Digital Technologies, and the Tourism Committee are tasked with these responsibilities.
Is there a solution?
Recently, President Shavkat Mirziyoyev addressed this issue during a meeting with entrepreneurs. He emphasized the need for carefully considered legislative changes to allow the storage of personal data in the Cloud.
Alternative solutions for tourists
The Central Bank noted that since 2019, tourists with international cards compatible with Apple Pay and Google Pay have been able to use the Humo payment terminals in Uzbekistan. While temporary, this solution offers some convenience for international visitors.
For Apple Pay and Google Pay to operate in Uzbekistan, legislative changes regarding personal data storage are crucial. Such adjustments would not only benefit international companies but also enhance the country’s digital payment ecosystem. Negotiations are ongoing, and a resolution is expected in the near future.
Leave a Reply