BAKU, Azerbaijan, February 3. The
digitalization level of payments in Azerbaijan may double by 2027,
according to a research document titled "The next wave of
digitalization in Azerbaijan," released by Mastercard in
collaboration with the Central Bank of Azerbaijan (CBA), Trend reports.


The document outlines a clear objective: to enhance financial
inclusion in Azerbaijan while driving swift advancements in
digitalization during the upcoming phase. The level of
digitalization of consumer-to-business payments, which was 32% by
the end of 2023, is projected to nearly double by 2027. The level
of digitalization of business-to-business payments among SMEs
(small and medium-sized business entities) is expected to increase
from 5–10% to 15–20% over the same period.


The document noted that Azerbaijan has made significant
progress, especially in the field of digitalization of consumer
payments.


"In 2023, this indicator was 32% and, according to forecasts,
was expected to increase to 38% by the end of 2024. The 'Cashless
Azerbaijan' initiative, launched jointly with Mastercard in 2017,
has played a decisive role in accelerating the digitalization of
consumer payments, especially in the past few years. As a result of
the successful implementation of these initiatives and the
effective support of stakeholders, Azerbaijan has taken important
steps in the field of digital transformation.


However, there is still significant development potential in the
direction of digitalization of SME payments, especially in addition
to consumer payments. Creating synergies between these two areas
can allow Azerbaijan to claim regional leadership in digital
payments," the document said.


The document recalled that, as a continuation of the 2017
initiative, the study titled "The next wave of digitalization in
Azerbaijan," conducted in 2024, aimed to further accelerate the
digitalization of payments and expand lending.







The study segmented consumer-to-business (C2B) and
business-to-business (B2B) payment flows for both consumers and
SMEs, analyzing and measuring each segment by payment methods and
behaviors used.


A diagnostic analysis covering more than 15 key areas was
conducted to identify the root causes of current difficulties in
segments with a high dependence on non-digital payments. The study
used market landscape assessment, market surveys, focus groups,
stakeholder interviews, 'mystery shopping' methods, and Mastercard
Advisors' deep knowledge of the economic dynamics of
Azerbaijan.


The document pointed out that after the diagnostic phase, an
assessment of the initiatives was carried out; within this
framework, more than 60 initiatives from more than 40 countries
that are at a similar stage of development to Azerbaijan's
digitalization

"Of these, 22 initiatives were considered highly relevant for
Azerbaijan, and detailed roadmaps for their implementation were
developed. This process identified the main strategy and practical
steps to advance the next wave of digitalization," added the
document.


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