Central Bank management meets with Mastercard representatives

15-04-2019

12 March 2019, Baku: The Central Bank management met with the managers from the Mastercard Inc. The participants discussed actions taken to implement 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 at the meeting whose topics included the development of cashless payments and introduction of modern payment solutions in the country.

The CBA jointly with the Center for Economic Reforms Analysis and Communication assessed the implementation status of the measures specified in the State Program in the follow-up of 2018 and issued a positive opinion on the works done over the specified period. Results of the assessment were delivered to the country leadership.

As a result of the actions taken the size of e-payments y/y increased by 31%, while the size of card operations y/y increased by 70% in 2018. The dynamics of QI of 2019 was positive as well pushing the share of cashless payments up to 20%.

The participants discussed mutual activity directions on realization of strategic targets implied in the State Program for the upcoming period and came to an agreement to cooperate on launch of cashless payment options in transport, educational institutions, expansion of innovative payment solutions, boost professional knowledge of bank staff and raise financial literacy of the population.

The Central Bank, the Baku Metropolitan and Mastercard officials met on the same day to discuss opportunities for application of cashless payments in public transport. They also discussed introduction of cashless payment tools, the latest related achievements, international practice and joint activity directions.

To note, similar meetings were held with the participation of transport representatives at the Baku Transport Agency and the Executive Power of Sumgait in February, where the participants discussed options for application of digital payments in public transport.

The key goal of these efforts is to formulate digital payment culture in the society, expand possibilities for application of cashless payments, increase cashless payments and decrease cash payments in economic circulation.