BAKU, Azerbaijan, April 22. The architecture of the National Payment System in Azerbaijan will be modernized, Trend reports, via the implementation status of the "2024-2026 Financial Sector Development Strategy" by the Central Bank of Azerbaijan.
In the payment sector, the next steps to be taken include restructuring the management framework of the National Payment System to support the rapid development of digital payments, collaborating with other central banks to expand cross-border payment options, and ensuring cost efficiency in digital payments.
Last year, the implementation status of the payment sector reached 88 percent. The approval of the "Regulation on the Organization and Implementation of Activities by Payment Organizations and Electronic Money Institutions," the "Guidelines on the Preparation and Submission of Payment Statistics Reports", the "Regulation on Payment Operations and Payment Instruments by Payment Service Providers", the "Regulation on the Organization of Work with Payment Agents", and the "Regulation on the Implementation of Strong Customer Authentication" was successfully completed.
In the AZIPS (real-time gross settlement) system, the adaptation of relevant state institutions' internal systems to new requirements for mutual information exchange, the full integration of banks' digital banking solutions into the Instant Payment System (IPS), and the development and approval of a tariff policy based on a comparative analysis of service fees with benchmark countries are among the delayed activities.
To note, alongside the application of innovative solutions in the payment sector, increasing accessibility to payment services, strengthening transparency and competitiveness in the payment market, and ensuring the security and efficiency of payment services are the key focus areas. The modernization of the national payment system, the creation of a favorable environment for market participants, and the establishment of an effective supervisory framework are also planned. As a key strategic goal in the payment sector, the average annual number of cashless transactions per capita, currently 93, is expected to increase to 200. As a result, the formation of a competitive and innovative payment ecosystem and the expansion of cashless payments are expected to significantly contribute to economic growth.
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