BAKU, Azerbaijan, July 17. The Central Bank of
Azerbaijan (CBA) and the Chinese international payment system
“UnionPay” discussed the development of QR code-based payment
solutions.


This was announced by the press service of the CBA, following a
meeting between Vusal Khalilov, Deputy Chairman of the Central
Bank, and Wang Lixin, the Chief Executive Officer of UnionPay
International, who is currently visiting Azerbaijan.


At the meeting, the parties exchanged views on the initiatives
outlined in the Memorandum of Understanding signed this year, the
status of joint projects, and the prospects for developing the
digital payment ecosystem and QR code-based payment solutions in
the country.


The meeting also addressed opportunities for deepening the
partnership and mutual integration.


Meanwhile, on January 30 of this year, a videoconference was
held between Vusal Khalilov, Deputy Chairman of the Central Bank,
and Wang Lixin, Chief Executive Officer of UnionPay International.
The meeting focused on the importance of expanding cooperation in
the issuance of payment cards and strengthening the
interoperability of QR code technologies. Following the meeting,
the parties signed a Memorandum of Understanding on
cooperation.







In addition, it was announced that the memorandum will help
establish a legal framework for cooperation between the Central
Bank and UnionPay, strengthen their cooperative relationship, and
expand joint activities in the areas of UnionPay card issuance and
processing, the integration of cross-border money transfer systems,
and the application of QR and token technologies.


Under the Memorandum of Understanding, the parties plan to
implement initiatives aimed at developing cashless payments,
providing local cardholders with a more stable, secure, and
convenient card experience, card products and services, and new
innovative products, as well as define the technical architecture
and mechanisms that will facilitate the transition to a cashless
economy.


Nevertheless, Azerbaijan is currently undergoing the phased
rollout of a QR payment system based on the unified AZQR standard.
In an exclusive interview with Trend, the Central Bank of Azerbaijan (CBA) announced
that banks have already completed technical integration with the
system and that the functionality is gradually being implemented in
POS terminals and mobile banking apps.


“The next stage of development could be the introduction of
cross-border QR payments. To this end, options for mutual
integration of Azerbaijan’s instant payment system with similar
systems in other countries are being explored. The regulator is
currently studying international best practices in this area. The
priority areas are expanding the use of QR payments in everyday
retail transactions, improving the user experience, and ensuring
full interoperability among banks participating in the ecosystem,”
the Central Bank noted.