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.