BAKU, Azerbaijan, February 3. The "Financial
Sector Development Strategy for 2024–2026" of the Central Bank of
Azerbaijan (CBA) will accelerate the digitalization of payments in
Azerbaijan, a research document titled "The next wave of
digitalization in Azerbaijan," released by Mastercard, in
collaboration with the Central Bank of Azerbaijan (CBA), says,
Trend reports.


According to the document, the above strategy aims to
significantly increase the digitalization of payments for both
consumers and small and medium-sized business entities (SMEs).


The document pointed out that the strategy focuses on increasing
the overall efficiency, accessibility, and security of digital
payment services, while also promoting competition and innovation
in the financial sector.


"The strategy sets ambitious targets, such as a share of
non-cash payments in retail trade exceeding 40 percent, a share of
digital channels exceeding 90% of the total volume of customer
transfers, as well as a share of non-cash card transactions
exceeding 70% of total card transactions," Mastercard emphasized in
a statement.


Mastercard noted that the document identified the formation of a
favorable ecosystem for Payment Service Providers (PSPs) as a
priority direction. This will be achieved by ensuring a level
playing field, facilitating the integration of PSPs into government
projects and digital payment infrastructure, and establishing a
robust regulatory framework that strengthens governance,
transparency, and competitiveness in the payments sector.







Mastercard highlighted that the CBA's measures aimed at
strengthening cybersecurity and combating fraud, as well as the
implementation of strong customer authentication (SCA) standards,
serve to increase security in the payment environment, as well as
strengthen trust among consumers and businesses.


"These strategic initiatives are expected to accelerate the
digitalization of consumer and SME payments, and digital financial
services will become more inclusive and widespread in Azerbaijan.
The strategy will make a significant contribution to reducing
dependence on cash, supporting financial inclusion, and overall
economic growth," the statement said.


At the same time, the statement underscored that although the
strategy includes a number of high-level initiatives related to
SMEs, the digitalization of SME payments remains a complex
challenge on a global scale. In order to achieve sustainable
results in this area, a comprehensive diagnostic approach and
implementation of multi-faceted measures covering policy, tax,
regulatory, and infrastructure directions are necessary.


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