Payments Landscape in Azerbaijan: Opportunities and Risks to 2021

  • ID: 4532616
  • Report
  • Region: Azerbaijan
  • 43 pages
  • GlobalData
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FEATURED COMPANIES

  • AccessBank
  • AGBank
  • Bank of Baku
  • Expressbank
  • Kapital Bank
  • Mastercard
  • MORE
Payments Landscape in Azerbaijan: Opportunities and Risks to 2021

Summary

Azerbaijan is a cash-oriented economy due to its high unbanked population, low financial awareness, and inadequate payment infrastructure. This is hindering the development of the country’s financial system, including the payment card market, which remains at a nascent stage. In comparison to its peers; Poland, Russia, Ukraine, Romania, Turkey, and Kazakhstan, Azerbaijan has the lowest card penetration and payment card usage frequency. But with government initiatives to increase awareness of non-cash payments through financial literacy programs, a strategy for the development of financial services, cash withdrawal fees, and the introduction of new regulation limiting cash transactions, payment cards are anticipated to gain traction over the next five years. These are anticipated to record compound annual growth rates (CAGRs) of about 11.1% and 11.4% respectively in terms of transaction volume and value over the forecast period.

To foster electronic payments in the country, in February 2018 the central bank of Azerbaijan announced its plan to launch an instant payment system in the near future, with funds made available to recipients within five to 10 seconds. The introduction of real-time payments is part of the government’s strategic roadmap for development of financial services, introduced in December 2016.

Alternative payments are also expected to gain prominence, with banks and payment solution providers launching new payment options. Wallet One is an e-wallet launched in Azerbaijan in January 2017. The wallet offers a multi-currency account and allows users to make online payments, pay for public services, and make money transfers. Wallet One has collaborated with over 10,000 service providers, and has 500,000 top-up points worldwide. Meanwhile the Azerpay mobile wallet was launched in Azerbaijan in February 2016, allowing users to make P2P, in-store, and utility bill payments.

To promote electronic payments and to reduce the country’s dependence on cash, the Law on Non-Cash Payments was introduced in January 2017. As part of the law the central bank and Mastercard launched the Cashless Azerbaijan project in February 2017. The project comprises three stages: evaluation of Azerbaijan’s cash economy, strategy development for non-cash payments, and the preparation of an action plan. The government also introduced a new Law on Non-Cash Settlements effective from January 2017. The law mandated that certain transactions - such as education fees, tax payments, payments to government bodies and authorities, utility bill payments, and payments to travel agencies - must be via non-cash methods. A penalty of 10% of the transaction amount (with subsequent increases to 20% and 40% if repeated a second and third time) will be imposed upon individuals who do not adhere to the law.

The report "Payments Landscape in Azerbaijan: Opportunities and Risks to 2021", providestop-level market analysis, information and insights into the Azerbaijan's cards and payments industry, including:
  • Current and forecast values for each market in the Azerbaijan's cards and payments industry, including debit, and credit cards.
  • Detailed insights into payment instruments including payment cards and credit transfers. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis.
  • Analysis of various market drivers and regulations governing the Azerbaijan's cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, and credit cards.
Companies mentioned in this report: Kapital Bank, International Bank of Azerbaijan, Expressbank, AGBank, AccessBank, Unibank, Bank of Baku, YapiKredi Bank, Visa, and Mastercard

Scope
  • To foster electronic payments in the country, in February 2018 the central bank of Azerbaijan announced its plan to launch an instant payment system in the near future, with funds made available to recipients within five to 10 seconds. The introduction of real-time payments is part of the government’s strategic roadmap for development of financial services, introduced in December 2016.
  • Alternative payments are also expected to gain prominence, with banks and payment solution providers launching new payment options. Wallet One is an e-wallet launched in Azerbaijan in January 2017. The wallet offers a multi-currency account and allows users to make online payments, pay for public services, and make money transfers. Wallet One has collaborated with over 10,000 service providers, and has 500,000 top-up points worldwide. Meanwhile the Azerpay mobile wallet was launched in Azerbaijan in February 2016, allowing users to make P2P, in-store, and utility bill payments.
  • To promote electronic payments and to reduce the country’s dependence on cash, the Law on Non-Cash Payments was introduced in January 2017. As part of the law the central bank and Mastercard launched the Cashless Azerbaijan project in February 2017. The project comprises three stages: evaluation of Azerbaijan’s cash economy, strategy development for non-cash payments, and the preparation of an action plan. The government also introduced a new Law on Non-Cash Settlements effective from January 2017. The law mandated that certain transactions - such as education fees, tax payments, payments to government bodies and authorities, utility bill payments, and payments to travel agencies - must be via non-cash methods. A penalty of 10% of the transaction amount (with subsequent increases to 20% and 40% if repeated a second and third time) will be imposed upon individuals who do not adhere to the law.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Azerbaijan's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Azerbaijan's cards and payments industry.
  • Assess the competitive dynamics in the Azerbaijan's cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Azerbaijan
  • Gain insights into key regulations governing the Azerbaijan's cards and payments industry.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • AccessBank
  • AGBank
  • Bank of Baku
  • Expressbank
  • Kapital Bank
  • Mastercard
  • MORE
  • Market Overview
  • Executive Summary
  • Card-based Payments
  • E-commerce Payments
  • Alternative Payments
  • Payments Infrastructure & Regulation
  • Appendix
Note: Product cover images may vary from those shown
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  • Kapital Bank
  • International Bank of Azerbaijan
  • Expressbank
  • AGBank
  • AccessBank
  • Unibank
  • Bank of Baku
  • YapiKredi Bank
  • Visa
  • Mastercard
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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