Baku, Azerbaijan, June 19
By Kheyraddin Nasirzade - Trend:
Trend presents interview with a member of the executive board and chief operations officer of PASHA Bank Jalal Orujov.
- What main trends in the development of cashless payments segment you observe in Azerbaijan? What is the role of state agencies and private banks in this process?
- The main thing that needs to be noted today is that the share of non-cash payments in Azerbaijan is growing, while the average amount of one transaction is decreasing. This means that the use of payment cards is entering the everyday life of society, which is a clear indicator of the growth of non-cash turnover. In particular, over the past few years, the volume of turnover through plastic cards in large and medium retail outlets has increased significantly. This trend also reflects the growth of transparency and legalization processes in the economy.
The main condition for the development of non-cash payments in Azerbaijan is to conduct successful economic reforms and ensure maximum transparency in many sectors of the economy. Thus, the recent projects of the Ministry of Taxes and the State Customs Committee have stimulated the transition of the activities of companies and facilities of the private sector of the economy to transparent, non-cash payment, which is clearly seen from the reports of these departments for 2018. The activities of market regulators, the Financial Market Supervisory Authority (FIMSA) and the Central Bank of Azerbaijan, also greatly influenced the expansion of non-cash turnover in the country. We, as one of the leading financial institutions of the country, closely interacting with the real sector of the economy, observe that the most favorable climate has been formed in Azerbaijan for a further multiple increase in non-cash turnover.
In turn, private banks in the country are actively involved in encouraging their customers to use cashless payment tools even more. Using advanced technologies and improving the functionality of payment systems, the market participants create and modernize mobile applications, conduct stimulating events, expand the network of POS terminals, etc. Of course, there are still many legal nuances that require the attention of all parties to this process, and they are successfully solved together with market regulators.
- What market changes do you expect against the backdrop of the initiative of the Ministry of Taxes on the introduction of new generation cash registers? What solutions will PASHA Bank offer for its customers?
- The development of cashless payments is associated with tax reforms and the requirements of the regulator, within which there are plans to install new generation cash registers. It is assumed that information on any operation carried out in the point of sale through new cash registers will be immediately displayed in the regulator’s databases, and this will allow the ministry to analyze the turnover of the trade object, which may lead to a decrease in the number of tax evasions.
After new cash registers are used in the market, the transparency of operations will greatly increase, which may lead to a decrease in the number of tax audits of entrepreneurs. Amid new requirements at the legislative level, PASHA Bank together with a partner introduces the cash register of the new generation Smart Kassa in the market.
The cash register combines an online cash desk, POS-terminal, check printing function and fully complies with all the requirements of the Ministry of Taxes, which will come into force in the near future.
Taking into account the expected volume of the operations, PASHA Bank offers the acquisition of cash registers for its target customers on preferential terms, even the provision of equipment free of charge.
- What is the advantage of innovation and features of new cash registers that you plan to introduce?
- The main advantage is that the Smart Kassa cash register is also a fiscal recorder connected directly to a centralized database. This device can be used both as a cash register for cash payments and as a POS-terminal, which will accept cards of any banks. That is, instead of two or three devices, one compact solution will be enough. Plastic cards fees will be charged as from an ordinary POS terminal. Another advantage is that entrepreneurs will be able to run their business without worrying about tax audits. The data on the cash flow entering the system will allow analyzing the information remotely.
When creating Smart Kassa, we used the experience of such countries as Turkey and Russia. We are sure that this device will be an indispensable tool for small and medium businesses. Cash registers of the new generation offered by PASHA Bank are ideal for trade facilities (shops, public catering facilities, etc.), and are also a profitable solution for courier services and itinerant trade, as they operate through SIM card or Wi-Fi.
Moreover, it is already possible to apply for getting the cash register of the new generation as the device also functions a POS. After the tax legislation is changed, all Smart Kassa modules will be activated automatically.
- When are Smart Kassa cash registers expected to be installed?
- By the end of this month we intend to install these cash registers. As I have already stated, at the initial stage, the cash registers will function as POS-terminals and cash registers. By the end of the year, we plan to launch special systems in these cash registers, in which entrepreneurs will be able to maintain warehouse and accounting records, which will save them time to compile monthly and quarterly reports. In a word, entrepreneurs will be able to greatly improve control over the accounting system for carrying out operations and optimizing expenses thanks to Smart Kassa cash registers.
- Please tell us more about the new product Miles & Smiles, which was launched in the market just a couple of months ago.
- As you know, PASHA Bank and Turkish Airlines have signed an exclusive agreement, releasing the Miles & Smiles card product to the local market. Card holders can make non-cash payments in objects of trade and services, earn miles and exchange them for air tickets to more than 300 destinations around the world. When booking hotels, renting cars, making purchases, a customer using the Miles & Smiles card is offered discounts of up to 35 percent. Discounts and various bonuses are valid for non-cash payments in Azerbaijan and abroad.
- What are the preliminary results of the bank in the digital direction this year? What products and services do you plan to introduce in the foreseeable future?
- At the beginning of 2019, we became the first bank in the local market to introduce an online account opening service. The project was developed by our Digital Lab, which we created last year, where we use advanced technologies and leading programming languages. Legal entities and individual entrepreneurs have the opportunity to open current and card accounts at any time of the day, including during non-working hours, pay for opening an account, connect to tariff packages and automatically connect to the online banking service.
As for new projects, there are actually a lot of them and most of them are related to the digital component of our activity. In addition to presenting new Smart Kassa cash registers in the market, about which we have already talked, we are actively working on a project of providing our customers with the opportunity to use our credit products online. In all these projects, we work closely with the Ministry of Taxes.
- Payroll projects from PASHA Bank are popular in the market. What advantages are provided to organizations and enterprises that connect to the bank’s payroll projects? What are the benefits?
- For companies, the main advantage is that the fee for joining PASHA Bank’s payroll project is one of the lowest in the market, and the process of connection to the project, additional card ordering, accrual of payroll, bonuses and other operations are simplified as much as possible by integrating the system into our Internet banking.
For employees, the main advantage is that payroll card holders can take advantage of significant discounts in stores, restaurants, education centers and other objects. We also have the biggest and ever-growing network of partner ATMs - more than 700 ATMs throughout Azerbaijan, where a user can withdraw funds if necessary. In turn, through the mobile application PASHA Bank, a client gets a wide range of products and services, including payment for parking, taxi services, etc.