Central Bank introduced the Instant Payment System in pilot mode

12-08-2020

12 August 2020, Baku:  Within the framework of the “State Program on Expansion of Digital Payments in the Republic of Azerbaijan in 2018-2020”, the Instant Payment System (IPS) implemented by the Central Bank was launched in pilot mode with the aim of introducing new digital payment technologies in the country and increasing access to payment services.

Today, the infrastructure of the existing National Payment System  created by the Central Bank meets the most modern requirements in terms of traditional payment systems in the world and is based on the latest achievements in the field of information technology. The main components of the infrastructure of the National Payment System operate within the approved regulations (09:00-17:00) in accordance with the principles of work accepted in the world. However, the main challenge of modern times is that payment services should be available everywhere, at all times, and that transactions can be completed as soon as payments are made.

IPS will allow to conduct payment transactions between individuals, businesses and government agencies in the regime 24/7/365 through bank accounts using simplified identifiers (PİN code, TIN, mobile number, e-mail) and money will be immediately available in the recipient's bank account. The launch of IPS will increase the efficiency of digital payments, as well as provide immediate liquidity for participants.

Currently, the integration works on 13 banks and the State Treasury Agency on the IPS platform has been fully completed and B2B, C2C (Business to Business, Customer to Customer) payments have been provided in pilot mode.

In order to expand the coverage of IPS, works are underway to integrate new banks into the system, as well as gradually increase the functionality for users. By the end of this year, the system will provide small businesses with features that allow them to accept cashless payments using innovative mobile solutions such as QR code, NFC. At the same time, by the end of this year, a payment function via IPS will be launched for about 600 services provided through the Government Payment Portal operated by the Central Bank.

The opportunities created by IPS will stimulate the expansion of digital payments among business entities, a significant reduction in the size of the cash economy in the country and, ultimately, the formation of a cashless society.