BAKU, Azerbaijan, June 9. Pensions and social benefits will be paid through the Instant Payments System (IPS) in Azerbaijan, Senior Software Engineer/Payment Systems Administrator at the Central Bank of Azerbaijan (CBA), Tofig Ajirgayev, said during the 10th International Finance and Banking Summit taking place in Baku, Trend reports.
According to him, the CBA is actively discussing the organization of cross-border payments with Turkey and the United Arab Emirates (UAE), and is considering various integration models and cooperation mechanisms.
The CBA official provided detailed information about two important projects currently being implemented by the institution.
Freedom in bank choice and improvement of payment systems
Ajirgayev noted that the first project envisages ensuring freedom of choice of bank for citizens in the distribution of pensions, salaries, and social payments.
"This module is not mandatory. The main goal here is to create alternative opportunities for recipients of funds to choose a bank. Thus, special service packages provided by banks to pensioners, including incentive measures for non-cash payments, will be expanded. Constant discussions are being held between the parties involved in the integration of this multifaceted and large-scale project, and these negotiations determine the future direction of the process. At the initial stage, salary payments, and in the subsequent stages, pensions and social benefits will be implemented through the Instant Payments System," he explained.
The CBA official also emphasized that the functionality of limited bulk payments for organizations integrated into the IPS will be changed, and the limit will be raised. According to him, within the framework of the payroll project, it will now be possible to execute more than 100 payments within one operation.
Cross-border payments: Global trends and steps of Azerbaijan
In his speech, Ajirgayev pointed out that the development of instant and digital payments in the world has entered the next stage, and noted that the next strategic focus is cross-border payment operations.
"Global trends and G20 priorities - cross-border integration of fast payment systems has been one of the most important trends in the global payment industry in recent years. This direction is included in the main priorities of the roadmap adopted by the G20 countries to make cross-border payments faster, cheaper, more transparent, and accessible. At the initial stage, countries preferred the bilateral model. For example, direct connections were established between Singapore's PayNow system and Thailand's PromptPay, and later India's UPI and Malaysia's DuitNow systems. Currently, the world is moving to larger-scale models such as Project Nexus, an initiative of the Bank for International Settlements (BIS), which connects the systems of different countries on a single platform," he said.
The CBA representative noted that Azerbaijan is also actively participating in this global transformation process.
"Azerbaijan has taken the first important steps not to be left out of this process.
The transition of the Instant Payments System to ISO 20022 standards and the development of digital payment infrastructure create a solid basis for our country to enter this new ecosystem. Currently, active discussions are underway with Türkiye and the UAE to organize cross-border payments, and various integration models and cooperation mechanisms are being considered.
Ajirgayev added that the main goal of this project is to create faster, safer, and more efficient international payment opportunities for citizens and business entities.
"This step, in addition to strengthening regional integration, will also make a significant contribution to the development of Azerbaijan's digital financial ecosystem," he concluded.
