Measures to expand digital payments continue

18-03-2021

18 March 2021, Baku: Complex measures were implemented, countrywide projects realized and the process is still under way by the Central Bank to expand cashless payment environment with public institutions and the banking sector, elevate introduction of innovative payment technologies, increase financial literacy of the population and shape cashless payment habits as part of the ‘State Program on expansion of digital payments in the Republic of Azerbaijan for 2018-2020’ approved by Decree#508 of the President of the Republic of Azerbaijan dated 26 September 2018.

As a result of the work done cashless payment indicators significantly increased vs previous periods, in 2020 the size of customer transfers from current accounts via e-banking (AZN95.7 bln), and domestic payment card transactions (AZN6.4 bln) reached historical highs.

The Central Bank prioritized maintenance of positive trend in the development of cashless payments, attraction of FinTechs offering innovative services to the payment market, high access to financial services for individuals and businesses in any part of the country irrespective their residence, as well as wider use of digital payment services for the next strategic period.

The Bank always attaches great importance to improving normative-legal base, along with formation of modern payment ecosystem and promotion of development of innovations.  In line with current challenges the Central Bank added provisions on legal aspects of Open Banking and introduction of Sandbox allowing FinTechs to offer new products and services to the draft Law on Payment services and payment systems that determine legal and economic grounds for regulation and supervision of payment organizations, other non-bank payment service providers like electronic money organizations. The draft Law will both support innovations and effectiveness in the payment market, and allow high competitiveness by creating a favorable market condition for payment service providers. Currently, the draft Law is in the process of coordination with relevant public authorities.

The Central Bank keeps cooperating with the banking sector and relevant public institutions to achieve the goals set to strengthen the institutional and legal framework of digital payment services, expand the range, quality and scope of these services by boosting infrastructure capacity.