Azerbaijani Central Bank, MasterCard sign memorandum of understanding on digital payments

By Trend

The Central Bank of Azerbaijan (CBA) and the MasterCard leading global payments and technology company have signed a memorandum of understanding, Trend reports referring to CBA.

“The purpose of the memorandum is to determine the spheres of cooperation within the state program on expansion of digital payments in Azerbaijan, and, in particular, on the application of innovative payment instruments in the country and improvement of financial literacy,” CBA said.

As was noted, there is a need to stimulate digital payments in the country’s districts, use cheap methods of payment for small businesses and analyze the modern methods of payments in the field of transport and in educational institutions.

In September 2018, Azerbaijani President Ilham Aliyev approved the State Program for the Expansion of Digital Payments in Azerbaijan for 2018-2020. The implementation of the program will reduce the share of cash transactions in the economy from 74 percent in 2017 up to 40 percent in 2020.

According to the program, the expansion of the use of digital payments will ensure transparency, reduce the operating costs of banks and expand the tax base, as well as facilitate the access of the businesses and population to the financial services and expand the banking sector's lending and investment opportunities. All this will help accelerate the pace of economic growth.