The problem
Iran is cut off from the international banking system and credit cards are effectively nonexistent there, so an online store had no trusted way to take electronic payments. Buyers distrusted paying unknown merchants, and small sellers faced a fragmented set of bank options with no standard checkout.
How it works
ZarinPal is an online payment gateway — described in 2014 as the first system of its kind serving Iran — that gives companies and online buyers hosted payment portals. It interconnects banks, offers newer payment channels such as USSD, and holds a Central Bank of Iran work certification plus PCI-DSS-grade security. Founder Mostafa Amiri positioned it as Iran’s first payment aggregator providing online payment solutions.
Pain points
No PayPal or usable credit cards under sanctions, fragmented bank-by-bank payment integration for merchants, low buyer trust in online checkout, and a shifting regulatory stance toward fintech intermediaries.
Business model
Payment-aggregator economics: ZarinPal monetises the transaction flow running through its gateway and related payment services for online and offline businesses.
Challenges
Running a card-less payments business under sanctions, satisfying Central Bank compliance expectations while heading off regulatory controversies, and holding its first-mover lead as rival domestic gateways mature.
Funding
No publicly cited funding round was found in the inspected sources for ZarinPal.
Latest — Jul 2017
In July 2017 CCN reported that Iranian fintech firms had banded together to form Iran’s FinTech Association after the Central Bank suggested the idea, quoting ZarinPal founder Mostafa Amiri — identified as the founder of Iran’s first payment aggregator — saying fintech companies were ready to work with regulators and needed a unified voice.