BAKU, Azerbaijan, August 25. The use of innovative technologies, including solutions such as Apple Pay and Google Pay, In Azerbaijan is of great importance in terms of the development of the digital payments ecosystem, the Head of the Expert Group on Payment Systems and Digital Banking of Azerbaijan Banks Association (ABA) Tamerlan Rustamov told Trend.
According to Rustamov, the decision of the Central Bank of Azerbaijan on the direct exchange of information on card transactions within the country with card organizations operating outside the country isn't accidental.
"In the first half of this year, the total volume of transactions made with payment cards in the country amounted to 24.6 billion manat ($14.4 billion). Of these, 9.9 billion manat ($5.8 billion) accounted for non-cash payments. The share of non-cash payments using cards within the country amounted to 40.4 percent,” Rustamov said.
“According to the International Telecommunication Union, in our country, there were 104.5 mobile phones per 100 people in 2021. Payments in the amount of 121.3 million manat ($71.3 million) or 6.9 million transactions were made via Apple Pay for six months of the current year," he noted.
Besides, according to the expert, given the fact that mobile phones are an integral part of everyday life, the widespread use of Android phones among the population plays an important role in the development of digital payments, including the launch of Google Pay.
"For the successful implementation of each payment solution, an appropriate infrastructure must be formed. Today, 72 percent (or 43,919 units) of our country's POS-terminal network accept contactless cards,” Rustamov further said.
“Also this year, as a result of the joint activities of the Central Bank, international payment systems and banks, for the first time in the country, the possibility of using smartphones as POS terminals was created, and the corresponding legislative framework was formed. This step will have a positive impact on expanding the infrastructure and improving the usability and formation of a network of POS terminals," he added.
He pointed out that the reason for the success of projects such as Apple Pay and Google Pay is the availability of infrastructure that supports contactless payments in places widely used by the population.
"The introduction of contactless bank card payments in public transport and the use of these technologies will be a successful step towards the development of digital payments. It’s important that digital payment platforms provided by fintech companies support payment technologies such as Apple Pay and Google Pay," concluded the expert.