BAKU, Azerbaijan, February 3. The "Financial Sector Development Strategy for 2024–2026" of the Central Bank of Azerbaijan (CBA) will accelerate the digitalization of payments in Azerbaijan, a research document titled "The next wave of digitalization in Azerbaijan," released by Mastercard, in collaboration with the Central Bank of Azerbaijan (CBA), says, Trend reports.
According to the document, the above strategy aims to significantly increase the digitalization of payments for both consumers and small and medium-sized business entities (SMEs).
The document pointed out that the strategy focuses on increasing the overall efficiency, accessibility, and security of digital payment services, while also promoting competition and innovation in the financial sector.
"The strategy sets ambitious targets, such as a share of non-cash payments in retail trade exceeding 40 percent, a share of digital channels exceeding 90% of the total volume of customer transfers, as well as a share of non-cash card transactions exceeding 70% of total card transactions," Mastercard emphasized in a statement.
Mastercard noted that the document identified the formation of a favorable ecosystem for Payment Service Providers (PSPs) as a priority direction. This will be achieved by ensuring a level playing field, facilitating the integration of PSPs into government projects and digital payment infrastructure, and establishing a robust regulatory framework that strengthens governance, transparency, and competitiveness in the payments sector.
Mastercard highlighted that the CBA's measures aimed at strengthening cybersecurity and combating fraud, as well as the implementation of strong customer authentication (SCA) standards, serve to increase security in the payment environment, as well as strengthen trust among consumers and businesses.
"These strategic initiatives are expected to accelerate the digitalization of consumer and SME payments, and digital financial services will become more inclusive and widespread in Azerbaijan. The strategy will make a significant contribution to reducing dependence on cash, supporting financial inclusion, and overall economic growth," the statement said.
At the same time, the statement underscored that although the strategy includes a number of high-level initiatives related to SMEs, the digitalization of SME payments remains a complex challenge on a global scale. In order to achieve sustainable results in this area, a comprehensive diagnostic approach and implementation of multi-faceted measures covering policy, tax, regulatory, and infrastructure directions are necessary.
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