Uzbekistan Opens Financial Ecosystem to Global Payment Platforms

Uzbekistan's financial landscape is undergoing a significant transformation. The country's Senate recently passed amendments to the Law "On Personal Data," addressing longstanding regulatory barriers that had limited global digital payment platforms like Apple Pay, Google Pay, and PayPal from operating fully within the country. This change comes as part of a broader effort to modernize the nation's digital infrastructure and integrate with global payment ecosystems. For years, Uzbekistan's strict data localization rules prevented international payment services from fully functioning, particularly for freelancers and e-commerce businesses that rely on platforms like and .

Why Is Uzbekistan Allowing Apple Pay and Google Pay to Operate?

Uzbekistan's regulatory overhaul is designed to attract international payment platforms by easing data localization requirements. Previously, all personal data had to be stored within the country, which made it difficult for platforms like to process international transactions involving Uzbekistani bank cards. The new legislation allows for cross-border data transfers for non-sensitive data types, provided they meet clear security standards and are sent to countries deemed to have adequate data protection laws. This shift is expected to accelerate the growth of the digital economy, expand contactless payment options, and create a more transparent payment environment for both businesses and consumers.

The government is also authorizing the Cabinet of Ministers to publish a list of countries that meet data protection standards, enabling regulated cross-border data transfers for businesses operating in Uzbekistan. This move supports local entrepreneurs, especially freelancers, who now have a more viable path to receive international payments without facing legal hurdles.

How Does This Affect Fintech and E-Commerce Growth in Uzbekistan?

Uzbekistan's new data framework is expected to have far-reaching implications for fintech and e-commerce. By aligning with global digital payment standards, the country is making it easier for local businesses to access international customers and vice versa. For instance, e-commerce platforms in Uzbekistan can now more easily facilitate cross-border transactions with foreign buyers, while Uzbekistani freelancers can securely receive payments from global clients using platforms like PayPal or Upwork.

The law also sets the stage for more robust digital financial infrastructure. For example, it supports the development of contactless payment options for tourists and promotes a more formalized economy by encouraging businesses to adopt digital accounting systems. The government is also working to integrate these digital platforms with tax authority systems to further reduce informal economic activity and improve transparency.

What Should Investors Watch for Next?

While Uzbekistan's regulatory shift is a positive sign for digital finance, investors should monitor how effectively the new data framework is implemented. For example, the government will need to clearly define which countries are considered to have adequate data protection laws for cross-border transfers. Additionally, local fintech companies and international payment providers will need to ensure their systems comply with the new requirements.

There is also potential for further regulatory adjustments as Uzbekistan continues to integrate global financial systems. The country has shown a commitment to digital transformation, and future reforms could include more flexible regulations for digital currencies, blockchain-based payment systems, or even international data-sharing agreements with other Central Asian nations. These developments could further position Uzbekistan as a key player in the digital finance space in Central Asia.

For investors, the key takeaway is that Uzbekistan is actively working to create a more open, transparent, and digital-ready financial ecosystem. This could attract more foreign investment into fintech, e-commerce, and digital infrastructure, especially as the government continues to support formal economic activity and reduce the shadow economy through digital oversight measures.