Uzbekistan’s Data Localization Law Impacts Apple Pay and Google Pay Entry
Apple and Google have declined to integrate their payment systems with Uzbekistan due to a controversial law requiring the physical storage of personal data within Uzbekistan. The Central Bank has revealed that efforts are now underway to review these legislative requirements.
In a government resolution adopted on September 18, aimed at developing tourism, ministries and agencies were tasked with creating favorable conditions for tourists and digitizing business processes. Specifically, negotiations with international online payment companies such as PayPal, AliPay, UniPay, Apple Pay, and Google Pay must be held by the end of 2024 to integrate them into Uzbekistan’s payment systems.
The Central Bank, the Ministry of Digital Technologies, and the Tourism Committee are responsible for executing this task. Throughout 2024, negotiations have taken place to link Visa and Mastercard cards issued by local banks to Apple Pay and Google Pay systems. However, Apple and Google have highlighted the need to revise certain provisions of Uzbekistan’s legislation, particularly in the Law on Personal Data.
Steps are currently being taken to revise legislative requirements and introduce Apple Pay and Google Pay services in Uzbekistan. Foreign tourists have been able to make payments in Uzbekistan through Humo payment system terminals since 2019.
The barrier to the entry of international payment systems into Uzbekistan is Article 27-1 of the Law on Personal Data, which requires personal data of Uzbek citizens to be stored in Uzbekistan. This law faced criticism from major IT companies and the public, leading to the temporary suspension of major social networks and messaging platforms. Recently, President Shavkat Mirziyoyev addressed the issue during an open dialogue with entrepreneurs, highlighting the need for a well-thought-out solution.
