BAKU, Azerbaijan, December 27. Mastercard will come out with new options to accelerate monetization in the Azerbaijani market soon, Mastercard General Director for Azerbaijan and Türkiye Avsar Gurdal told Trend.
He said that Azericard and Mastercard want to collaborate on a number of projects, as well as research best global and regional practices for the development of card business and fintech.
"Last year, Mastercard and Azericard signed a memorandum of understanding for a strategic data monetization partnership. Since then, we have been working closely with our strategic partner, Azericard, to build and develop these solutions. We will be bringing these to market very shortly. Our ultimate goal is to help our partners leverage this market's massive data resources to make more effective and efficient business decisions," Gurdal noted.
Besides, he pointed out that Mastercard is actively working on activating money transfers via mobile numbers in Azerbaijan, and collaborating with the International Bank of Azerbaijan on this.
“Masterpass is a service that allows customers to transfer money to a mobile phone number by reinventing the traditional technique. For example, you can transfer payments by immediately inputting a recipient's cell phone number from your smartphone rather than typing the person's 16-digit bank card code," Gurdal explained.
"The money will be deposited into the recipients' bank accounts using simply their phone number. This substantially facilitates the mutual comfort process. We've made it feasible to transfer money using already-existing information - a mobile phone number. Bank card information is encrypted in the background, and transactions are processed via 'Masterpass'. Here, safety comes first," the general director highlighted.
"In reality, we launched 'Masterpass' to make the e-commerce easier in Azerbaijan. However, this approach will not only be suitable for e-commerce but also for money transfers. 'Masterpass' will be utilized not only for money transfers between Azerbaijani banks but also for sending money to bank accounts in Türkiye and other countries via cellphone number. What advantages may you anticipate? Domestic and international remittances will be processed in the same way, making life easier for consumers. We are currently working on this," Gurdal added.
Furthermore, he forecasted that after the introduction of 'Open Banking' in Azerbaijan, more small and medium-sized enterprises will have access to loans.
'Open Banking' is a very important element of digitalization of the economy, the general director also pointed out.
“In essence, 'Open Banking' gives users ownership over their data. According to the Central Bank of Azerbaijan, this service will be available in the country shortly, and the market is ready for it. We expect to see value offers for SMEs such as access to loans through the system and accounting solutions once 'Open Banking' goes live," Gurdal said. "As an example, when 'Open Banking' was implemented in the UK, 75 percent of SMEs obtained access to loans, up from 50 percent previously. In the Azerbaijani market, we anticipate similar changes. One of the primary benefits of 'Open Banking' is access to more extensive information on clients, which enables banks and financial institutions to make more informed credit decisions."
The second key factor, according to Mastercard General Director, is accounting systems that allow businesses to regulate cash flow and handle cash movements in banks.
As he explained, 'Open Banking' gives consumers with access to personal finance management options.
"Accounts, payments, and investments in other banks may now be easily managed from a single spot, considerably improving consumer convenience," Gurdal said.
Moreover, he emphasized that over the last few years, the Mastercard global payment system has been actively investing in cyberspace.
“We have purchased a number of cybersecurity firms, including those that provide monitoring and preventive services. We have Cybercrime, Cyberfront, and Risk Recon solutions for both market groups. These solutions aid in the identification of hazards that may affect financial institutions as well as their clients, which include corporations. As a result, we offer these solutions to our banking partners and their clients, who include corporations from a variety of industries,” he noted.
Speaking of the security of digital payments, Gurdal said payments made via telephone are as safe as those processed via bank cards.
“There are no known security flaws. However, we know that cyberattacks are becoming more common around the world. By purchasing businesses, Mastercard helps our field-related partners. Our members - banks, non-bank organizations, and other enterprises selling Mastercard products - may safeguard their own security and, more critically, the security of their shareholders through our services. We find and test solutions. We introduce items that improve security in linked fields,” he concluded.
Mastercard is a global technology leader with over 2.3 billion account holders in 210 countries. Kantar 2023 ranks the company among the top ten most valuable global brands in the world, with a market worth of more than $390 billion.
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