BAKU, Azerbaijan, Mar.18
Trend:
The Central Bank of Azerbaijan (CBA), together with government agencies and the banking sector, implemented a set of measures aimed at expanding the cashless payment environment in the country within the 2018-2020 State Program for Expansion of Digital Payments in the country, approved by the presidential order dated September 26, 2018, No. 508, Trend reports referring to a source in the CBA.
According to the source, the measures are also aimed at increasing the introduction of innovative payment technologies and enhancing the financial literacy of the population.
Besides, within the program, different projects have been implemented throughout Azerbaijan, and this process continues.
As a result of the done work, indicators of non-cash payments in the country considerably increased compared to previous periods. So, in 2020, the volume of customer transfers from current accounts through electronic banking amounted to 95.7 billion manat ($56.3 billion), and the volume of non-cash transactions made with payment cards within the country reached a record high level (6.4 billion manat or $3.7 billion).
Besides, according to the source, the Central Bank has identified important priority areas for the next strategic period in order to maintain a positive trend in the development of non-cash payments, attract financial technologies offering innovative services to the payment market, broaden the access of the population and business entities to financial services anywhere in Azerbaijan, regardless of residence place, as well as expand the use of digital payment services.
Along with the formation of a modern payment ecosystem in the country and the encouragement of the development of innovations, the focus is constantly on improving the regulatory framework in these areas, noted the source.
The bill ‘On payment services and systems’, which defines the legal and economic basis for regulation and control by the CBA of payment institutions, non-bank payment service providers, and e-money organizations, includes the legal aspects of Open Banking in accordance with modern challenges and provisions for the application of a regulatory testing regime that allows the fin-techs to offer new products and services.
Moreover, the bill will create high competitiveness in the payment market by supporting innovation and efficiency, as well as creating a favorable market environment for payment service providers. Currently, the draft law is at the stage of coordination with the relevant state bodies, added the source.
The Central Bank continues to interact with the banking sector and relevant government agencies to achieve the goals set to expand the range, quality and scope of digital payment services in Azerbaijan by strengthening the institutional and legal framework and expanding infrastructure capabilities.