Exploring the Internationalization Barriers and Opportunities for Iranian Fintech Companies

a qualitative study of strategic challenges and solutions in Iran’s fintech sector

Abstract

This study explores the barriers and opportunities faced by Iranian fintech companies in their efforts to internationalize, within the unique context of Iran's political, economic, and regulatory environment. The growing global significance of the fintech sector and the specific challenges Iranian companies face due to international sanctions and domestic regulatory constraints motivate the research. Through qualitative interviews with ten senior managers from leading Iranian fintech firms, the study identifies key barriers, including sanctions, regulatory differences, and talent shortages. Conversely, it highlights opportunities in technological innovation, strategic alliances, and the demand for Sharia-compliant financial products in culturally aligned markets. The findings suggest that while the barriers are significant, leveraging advanced technologies like blockchain and forming strategic partnerships can effectively mitigate these challenges. The findings suggest that Iranian fintech firms can mitigate these challenges by strategically investing in technology and building global partnerships. This study provides valuable insights for policymakers and industry stakeholders to enhance the global competitiveness of Iran's fintech sector. Future research should consider expanding the sample size and exploring the evolving dynamics of the fintech industry in different geopolitical contexts.