25 Fintech Firms Give Services in Azerbaijan’s Financial Market

According to Azernews, Ruslan Talibov, chairman of the FinTech Association of Azerbaijan, said during the “Fintech-ecosystem in Azerbaijan- now and future” event that 25 fintech firms are currently operating in the country.

He stressed that around 20% of these fintech firms are worldwide participants. Also, noted that 55.6% are steady while 44.4% are still expanding.

He said that the introduction of legislation regulating payment systems would hasten their development. It increases the number of fintech firms, offers access to payment instruments, and other advantages.

In addition, as Ruslan Talibov pointed out, fintech firms need to pave the way for banks to work more closely with them.

Fintech Certificates

Samir Humbatov, vice chairman of the board at the Small and Medium Business Development Agency, spoke at the ceremony. He said that during the previous two years, the organization had granted over sixty certificates to new businesses.

He stressed that problems with funding newly established ventures will address in the near future.

Unfortunately, not all certificate-holding business founders live up to the arduous expectations that led to their awards. In light of this, he said, it was important to develop means of obtaining financial backing and loans.

Online Payments

Central Bank Executive Director Farid Osmanov has said that the bank is actively striving to encourage digital payment methods.

Noting that work is ongoing to develop digital payments in accordance with a plan set in 2021. He went on to say that legislation on payment systems is being approved soon, which will speed up the growth of electronic financial services.

In addition, he said, “we are also working on a number of additional pieces of legislation which will simplify the growth of financial services and their conformity with international norms.” He said that the use of bank cards for purchases has expanded dramatically in Azerbaijan. Director added that the country now has 13 million cards, 9 million of which are contactless.

He also stated, “Cashless payments in the overall turnover of the nation account for roughly 41 percent.” “We intend to expand the percentage of non-cash payments in the whole turnover.”

Farid Osmanov said that the bank is developing open banking in addition to a project that will foster cooperation between financial technology firms and financial institutions.

The licensing of payment systems is another point he made to the press. He said, “The relevant decision was reflected in the law on payment services and systems.”

The Central Bank is taking broad steps to promote cashless transactions and stimulate economic growth. The CBA will regulate payment networks, non-banking entities, and intermediary services when a proposed motion is passed. As he put it, “such conduct will authorize and license, and these organizations will be subject to technical safety and control requirements.

Global Payment Solutions

According to Visa’s Regional Manager for Central Asia and Azerbaijan, Nurlan Hajiyev, Visa’s cashless payment solutions, Apple Pay and Google Pay, were introduced in Azerbaijan in 2019. He said how tokenization paved the way for the introduction of cashless payment systems.

Visa believed that this would pave the way for the introduction of rival mobile payment systems like Apple Pay and Google Wallet in the country of Azerbaijan. “Several financial institutions are still working on this issue today,” he said.

The regional manager further said that railway tickets on the Baku-Sumgait line are now available for cashless purchasing with Visa.

“The necessary infrastructure for 14 stations along the Absheron Circular Route is being put in place.” “It is intended to extend this approach to other lines,” he stated.

According to Nurlan Hajiyev, Visa intends to establish MTT (mobility and transport transaction) in Azerbaijan, which would include the use of tokens for public transportation.