
The Shetab Banking System has been a game-changer for card-based transactions in Iran. It's a nationwide payment network that allows people to make transactions using their debit or credit cards.
With Shetab, you can make transactions at any bank's ATM or point of sale terminal, making it incredibly convenient. This system has become an essential part of daily life in Iran.
Shetab was established in 2000 by the Central Bank of Iran, and it has been continuously upgraded to keep up with the latest technology.
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Key Features
SHETAB is a comprehensive electronic banking system that offers a wide range of functionalities to its users.
The system allows for cash withdrawal, electronic purchasing, funds transfer, bills payment, and balance inquiry at various platforms such as ATMs, POS terminals, internet, cell-phone, and kiosk platforms.
With SHETAB, you can conduct your payments immediately over the internet or over the phone, making it a convenient option for citizens.
All Iranian banks must adhere to SHETAB standards and be able to connect to the system, ensuring that all issued credit or debit cards are SHETAB capable.
SHETAB has enabled Iranians to move towards a more cashless society, with nearly 74 million debit cards used to make transactions out of a total of 344 million issued cards.
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Card-Based Transactions System in Iran
In Iran, the SHETAB system is the backbone for card-based transactions, introduced in 2002 to handle ATM, POS, and other card-based transactions.
The system was created to provide a uniform standard for Iranian banks to connect and process transactions.
Before SHETAB, few Iranian banks issued cards that only worked on their own ATMs and POS machines.
Today, all banks in Iran must adhere to SHETAB's standards and be able to connect to it.
In 2002, there were 2.8 million domestic debit cards in circulation, but only about 530,000 were SHETAB capable.
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By 2022, nearly 344 million debit cards had been issued, with 74 million used for transactions, indicating a trend towards a cashless society.
SHETAB has enabled Iranians to make payments at over 70% of shops in the country, which have installed POS terminals.
The system has provided greater efficiency, reduced crime, and saved money on printing costs, among other benefits.
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Connectivity
The Shetab system has been connecting with other payment systems around the world since 2005. In March of that year, agreements were reached between the Iranian Central Bank and Bahrain's ATM network Benefit, as well as the United Arab Emirates's UAES, to connect their systems to the Shetab network.
Iran and China linked their banking systems in October 2005. This connection allowed for a more seamless transfer of funds between the two countries.
The Shetab system was linked with Qatar's ATM network (NAPS) in July 2006. This integration enabled customers to access their accounts from both Iran and Qatar.
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By May 2008, the automated teller machine (ATM) network of Iran had been linked to those in Bahrain, Qatar, and Kuwait, allowing customers to have direct access to their accounts from Iran and the Arab countries.
Iran has plans to link its Shetab system to Japan’s JCB and China’s UnionPay in the short term, and to Visa and Mastercard over the long term. This expansion will further increase the system's connectivity and usability.
Here's a list of some of the countries whose payment systems have been connected to the Shetab system over the years:
- Pakistan
- Indonesia
- Singapore
- Philippines
- Hong Kong
- Sri Lanka
- Japan
- India
Note that this list is not exhaustive, but it gives you an idea of the Shetab system's growing global reach.
Impact and Partnerships
The Shetab banking system has had a significant impact on Iran's economy and citizens' lives. It's expected to provide greater efficiency, reduce crime, and improve tax collection among other benefits.
As of 2006, Iran was still a largely cash-based society, but the introduction of Shetab has been a game-changer. The system allows for electronic banking, supply chains, online banking, and retailing systems, making it easier for people to conduct financial transactions.

The impact of Shetab is already being felt, with corporations establishing e-commerce and online banking systems. This is evident in the statistics, with nearly 344 million debit cards issued by banks, and 74 million of them used to make a transaction.
The system's functionalities cover a wide range of transactions, including cash withdrawal, electronic purchasing, funds transfer, and bill payments, making it a convenient option for citizens.
Impact
As of 2006, Iran was still a cash-based society, but that's changing thanks to a unified clearance system like Shetab.
This system is expected to significantly improve efficiency, reduce crime, and lower money printing costs. It will also make tax collection easier.
In fact, corporations are already establishing e-commerce, supply chains, online banking, and retailing systems, which is a clear indication of the system's impact.
The Central Bank of Iran's reports, including Shetab and electronic banking statistics, provide valuable insights into the system's progress.
Here are some key statistics from the Central Bank of Iran's reports:
- Annual Reviews - Reports by the Central Bank of Iran, including Shetab and electronic banking statistics.
- Iran-Daily: Banking Reforms (Press article)
By having access to these reports, we can see the tangible benefits of Shetab, such as reduced crime and lower money printing costs, which will ultimately improve the quality of life for Iranian citizens.
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Tehran-Moscow Payment Systems Interconnect
Iran and Russia have signed their first bilateral monetary agreement to strengthen financial and economic ties and counter US sanctions.
Iranians will be able to withdraw money from Russian ATMs with Iranian bank cards from late August this year.
This is made possible by Iran's integration into the Russian MIR payment system, an alternative to Visa and Mastercard.
The Iranian SHETAB system and Russian MIR payment systems are now operational.
Iranian cards will be usable in Russian ATMs, allowing every person with an Iranian card to receive their funds in rubles from Russian ATMs.
The second stage of this connection will benefit Russian nationals in Iran, enabling them to use their cards in the republic.
The third stage will allow Iran's SHETAB cards to be accepted at POS terminals in Russian stores.
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Frequently Asked Questions
What is the banking system in Iran?
Iran's banking system is based on Islamic principles, operating without interest, and is primarily run by seven large government-controlled commercial banks. This unique system makes up a significant portion of global Islamic banking assets.
Sources
- https://en.wikipedia.org/wiki/Shetab_Banking_System
- https://en-academic.com/dic.nsf/enwiki/3101897
- https://www.linkedin.com/pulse/shetab-system-behind-card-based-transactions-iran-mohammadreza-azali
- https://www.iranintl.com/en/202407060308
- https://eurasiabusinessnews.com/2024/07/06/the-central-bank-of-iran-connected-the-russian-mir-system-to-its-shetab-system/
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