Uzbekistan has taken a key regulatory step toward enabling the operation of global digital payment services such as Apple Pay, Google Pay, and PayPal by updating its personal data legislation. The changes are designed to remove long-standing legal barriers that have limited the entry and full functionality of international payment platforms in the country.

The reforms were adopted through amendments to the Law “On Personal Data,” approved by the Senate as part of a broader effort to modernize Uzbekistan’s digital and financial regulatory framework, The Caspian Post reports, citing Uzbek media.

Lawmakers have emphasized that the revisions address data localization requirements that previously constrained cross-border digital services, including payment systems.

Historically, Uzbekistan’s personal data law required all personal data to be stored exclusively on servers located within the country. This requirement restricted the ability of foreign payment providers to operate locally. As a result, bank cards issued in Uzbekistan have not been fully compatible with PayPal, limiting access to platforms that rely exclusively on that payment system.

This has had a notable impact on freelance programmers, digital content creators, and technology professionals in Uzbekistan, many of whom depend on international marketplaces such as Upwork, Fiverr, Envato, and Storyblocks to sell software products and digital content to foreign clients. While some platforms support card payments or bank transfers, others operate only through PayPal, making full participation difficult under the previous regulatory regime.

The amended law narrows the scope of mandatory data localization. Under the new framework, only specific categories of sensitive data-such as biometric, genetic, and telecommunications-related information-must be stored within Uzbekistan. Other types of personal data may be transferred and stored abroad, provided that defined security and protection requirements are met.

In addition, the legislation authorizes the Cabinet of Ministers to approve a list of foreign countries that offer an adequate level of personal data protection. Data transfers to these jurisdictions will be permitted under regulated conditions, creating a clearer legal basis for cross-border digital services.

According to lawmakers, the updated legal framework is expected to facilitate the entry and operation of international online payment systems, support the growth of fintech, e-commerce, and the broader digital economy, and establish transparent payment mechanisms for freelancers and digital entrepreneurs. The changes are also intended to expand contactless payment options for foreign visitors, improving convenience for tourists and international business travelers.

With the adoption of these amendments, Uzbekistan has laid the legal groundwork for deeper integration with global payment ecosystems and increased participation in international digital commerce.