Report: Azerbaijan’s use of payment cards can help grow economy

Azerbaijan is increasing its use of credit cards for payments with card transactions growing by over 37% in two years. Greater use of cards and other modern payment methods instead of cash can help grow economies by 1 or 2 percent.

This is the finding of a major new report, the contents of which will be discussed in depth at Cardist 2011 – the fourth International Card and Smart Technologies exhibition and summit taking place in Istanbul in November.

Eurasia Insights – a leading research company specialising in the Eurasian economies – says that increasing the use of ‘cashless payments’ involving tried and tested technologies is a relatively simple way of improving the economic fortunes of countries across Eastern Europe and Central Asia.

Many Azerbaijanis who use plastic cards use them to withdraw cash from automated machines – 93 per cent of all card transactions were at such machines rather than in shops or businesses. The number of shops and businesses accepting cards for payments declined while the number of cash machines rose.

Simon Hardie of Eurasia Insights said: “Across the Eurasia region, the number of cash machines has continued to rise over the last five years. Unlike countries in Western Europe, cash – often an inefficient and costly way to move finances around - firmly retains its hold as the driving force in everyday economic life.”

Azerbaijanis appear to be choosing to use credit cards for larger purchases. While credit card transactions represented only five per cent of all transactions, they accounted for 11 per cent of treansaction values.

Several innovative programmes and trials ranging from loyalty schemes to contactless and mobile payment technologies will be showcased at the Cardist 2011 Summit.

The event will also provide an opportunity for financial and telecommunications experts to discuss the future of payments in the region.  More information is available at www.cardist.com.tr/en.

/Today.Az/