BAKU, Azerbaijan, September 2. The law "on payment services and payment systems" will enable all fintech players and participants in Azerbaijan's financial market to issue payment cards and electronic money, as well as facilitate money transfers, the Deputy Director of the Payment Systems Department at the Bank of Baku and the Head of the Expert Group on Payment Systems and Digital Banking at the Azerbaijan Banks Association (ABA), Tamerlan Rustamov, told Trend.
According to Rustamov, fintech players are expected to benefit more from the law's enforcement than the Central Bank of Azerbaijan.
"So, fintech companies will be able to implement innovative solutions and technologies, primarily to provide competitive payment services and form a new customer segment. Such services include issuing payment cards for digital money and facilitating money transfers," he noted.
Furthermore, according to him, payment systems also have opportunities to utilize Open Banking technology.
"Studies indicate that countries with similar laws have seen expanded and diversified digital platform activities. As digital transformation progresses, we'll witness the use of both physical and online payment agent activities via various mobile solutions," he added.
The turnover on payment cards through ATMs and POS terminals in Azerbaijan amounted to seven billion manat ($4.1 billion), and the number of payment cards reached 15.04 million as of July 1, 2023.
The law "On payment services and payment systems" was passed by the Azerbaijani Parliament on July 14 and signed by the President of the Republic of Azerbaijan, Ilham Aliyev, on August 9.