BAKU, Azerbaijan, Dec.1
By Zeyni Jafarov - Trend:
An important step in the development of the payment ecosystem will be the introduction of universal exchange standards in the financial structure of Azerbaijan, the expert group on ‘Payment Systems and Digital Banking’ of the Azerbaijan Banks Association (ABA) told Trend.
According to ABA, the application of these standards will harmonize the procedures and formats of communication between financial market participants, including settlements between participants in the payment system, and also optimize a number of procedures and business processes in this area.
The association noted that significant steps are currently being taken to develop the payment card market, which is an integral part of the payment ecosystem. Thus, this year the Central Bank of Azerbaijan (CBA) has started issuing student cards in cooperation with international card organizations and banks.
Touching upon digital solutions in payments, the ABA expert group stressed that the tokenization service is widely used in the financial market of Azerbaijan, which allows digital payments to be made using mobile phones. Another successful project in this area is the launch of payment cards in the transport system of various cities of Azerbaijan as a pilot project.
As part of the implementation of the strategic bank card, the Central Bank of Azerbaijan, acting as the driving force of the payment ecosystem, launched an instant payment system in October of this year, which ensures that settlements between business entities are carried out around the clock and this ensures immediate liquidity of the recipient's bank accounts.
The payment system, which will be integrated into the infrastructure of payment terminals, electronic banking services of banks, and cash registers installed in business entities, will allow digital payments based on a QR code and NFC technologies.
"As in various sectors of the Azerbaijani economy, the development of the payment ecosystem and the introduction of best world practices in this area are always in the focus of attention of both banking organizations and the head of state personally,” the association said.
“It’s no coincidence that the Strategic Roadmap for the Development of Financial Services in Azerbaijan, adopted by the President Ilham Aliyev's decree of December 6, 2016, set new tasks for the country's financial structures to develop the infrastructure of the National Payment System and its components in Azerbaijan," concluded the association.
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