BAKU, Azerbaijan, April 29. The Central Asia region and Azerbaijan are not just an area on the map but a center of development and innovation, Sanjar Suleymanov, Senior Director and Head of Visa Direct in Ukraine, Georgia, CIS countries, and South-Eastern Europe, told Trend in an exclusive interview.
"Each year, we witness a dynamic surge in non-cash payments across this region, indicating the populace's keen interest in financial services despite prevailing challenges. Central Asia and Azerbaijan serve as fertile grounds for the emergence of novel services and products, fueled by a profound enthusiasm for innovations. The financial services market competition in our country is notably intense, with every participant striving to attract clients, thereby propelling industry advancement.
We remain consistently driven and must allocate additional resources to meet escalating demand. It's noteworthy that many new services often debut in our region before spreading globally. This underscores that innovation isn't solely the domain of developed nations but can thrive in regions where fresh approaches to financial services are introduced," he said.
According to Suleymanov, this tendency will continue, which is why Visa is actively investing in partners, the market, and innovation.
"Our company is focusing on various areas, including support for young talent and athletes, to create a comprehensive ecosystem that will reach not only into segments traditionally associated with Visa but will connect all areas of life with the company," he added.
The regional Visa Direct head noted that both the banking and fintech sectors of Azerbaijan are developing at high rates.
He added that Visa has been investing in the country's economy for many years, contributing to the expansion of the issuance and use of payment cards.
"The company's strategy has undergone a transformation: whereas before our focus was primarily on facilitating cashless payments, today we prioritize enabling receipt of payments, including international transfers via Visa Direct. We now view cards not only as a means for making payments but also as a platform for receiving funds," he further added.
Suleymanov noted that the convenience of using a payment card and various bonuses such as cashback and special offers offered by banks encourage consumers to pay by card more often.
"This not only stimulates the use of payment cards in everyday life but also contributes to the growth of financial activity and inclusion," he added.
He also drew attention to the importance of supporting various financial market participants.
"Our objective is to foster inclusivity within the market by collaborating equally effectively with both major institutions and smaller banks. For instance, the recent surge in demand for Visa Direct transfers abroad has highlighted the interest among small banks, a trend less evident previously. We strive to cultivate a competitive landscape wherein each bank is incentivized to deliver optimal services to its clientele, thereby encouraging consumer uptake. This healthy competition extends to geopolitical considerations, such as enhancing travel industry development and meeting the needs of foreign workers or students. Consequently, payments have become increasingly convenient and accessible, both domestically and internationally," said the senior director.
Suleymanov emphasized that Visa's innovations and products not only contribute to the development of financial inclusion in Azerbaijan but also open new prospects for the development of small businesses and improve the quality of life of customers.
He singled out two Visa Direct products among the main innovations contributing to the expansion of access to financial services.
"The initial milestone involved introducing a service that enables linking any card to the user's phone number, regardless of the payment system, thereby streamlining the transaction process and enhancing accessibility for all demographics, including both young individuals and the elderly, who may find other financial tools daunting. Another product that fosters financial inclusion is Visa's Direct Request to Pay technology. This feature not only facilitates person-to-person transfers, such as for fundraising purposes, but also unlocks fresh opportunities for small businesses. Through this service, entrepreneurs can effortlessly request payment for goods and services, significantly streamlining mutual settlements and enhancing the security of financial transactions," he said.
The senior director also emphasized that the key to the success of these products lies not only in the efficiency of the technologies themselves but also in the payment literacy and awareness of users themselves about the possibilities of these services, as well as in cooperation with partner banks for their integration.
According to him, Uzbekistan is an unusually interesting market with promising opportunities for the development of payment technologies.
"On the one hand, local payment systems are highly developed in Uzbekistan, but the country has been open to international payment systems for several years. Due to this, we have vast horizons in front of us in terms of opportunities and services we provide there," he said.
According to Suleimanov, it is the young generation that stimulates innovation and the development of new technologies in Uzbekistan; therefore, Visa offers a wide range of services adapted to their needs.
"Many digital banks have recently opened in Uzbekistan, making the current financial system more diverse in terms of innovation," he added.
Visa Direct's head noted that Uzbekistan's market stands out from other markets where innovation can face barriers. In Uzbekistan, however, the introduction of innovations is evenly distributed, which creates a favorable environment for the development of financial technologies.
Suleymanov emphasized the importance of cooperation between large and small banks, as well as support from the government, fintech, and venture capital investment, to ensure that the country's financial sector continues to develop.
The senior director added that Visa plans to expand the list of countries connected to Visa Direct Request to Pay technology.
According to him, as soon as Visa announced the pilot launch of Request to Pay in Kazakhstan with two partners, requests from other markets such as Azerbaijan, Uzbekistan, and Ukraine immediately poured in.
"We saw a huge demand in those markets, where our service of transfers by phone number is developed and people know about it. Announcements and press releases about new connections will be in the public domain. We specially make this information public to show the demand for the service," he said.
Suleymanov noted that the idea of Request to Pay technology originated in a rather curious way.
"During the developmental phase of the service, we and our partners pondered: while it's feasible to send transfers via phone number, why not enable similarly requesting money? Hence, by introducing the Visa Direct Request to Pay technology, we essentially transformed our service into a distinct offering," he shared.
The senior director also shared plans to expand Visa Direct Request to Pay in Kazakhstan.
According to him, Visa sees potential in cross-border requests within the Visa Direct Request to Pay system in the future.
"Now a lot of merchants sell their goods on special platforms, which give them the opportunity to sell products around the world. In this regard, we see potential in the introduction of such a service as billing customers from other countries. The technology will be developed based on the requests and needs of our customers. We also offer our platform not only to partners in the financial sector but also to states," he revealed.
Suleymanov also said that Visa's solutions are helping the growth of a cashless economy.
"We are stimulating the local market by bringing innovation and showing that the market is ready for new types of services," added the senior director of Visa Direct.
To note, Visa (NYSE: V) stands as a global frontrunner in the digital payments sector. Facilitating payment transactions among consumers, businesses, financial institutions, and government entities in over 200 countries and territories, Visa's objective is to unite the world through an innovative, convenient, reliable, and secure payment network, fostering consumer well-being alongside business and economic prosperity.
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