Domestic QR payment systems in Azerbaijan will be integrated with foreign systems in the future, Ramil Mahmudov, deputy director of the Payment Systems and Payment Product Inclusivity Department at the Central Bank of Azerbaijan (CBA), said at the 10th International Banking and Finance Summit, Report informs.
According to him, unified nationwide standards have been established in Azerbaijan for QR payments, which are considered among the new payment instruments.
"The main advantage of these standards is that they were developed on the basis of international EMV QR standards. This will create conditions in the future for integrating Azerbaijan's QR payment infrastructure with the systems of other countries.
In addition, payment solutions of foreign countries that apply the EMV QR standard will be able to be used in the local acquiring network. This model will open up new prospects for banks and payment service providers, while also supporting the expansion of cross-border payments," he said.
Mahmudov noted that the implementation of the QR standard in Azerbaijan has started to show effective results within a short period of time.
"The AZQR standard came into force in November last year, while intensive integration processes with banks began at the start of this year. As a result, turnover in QR payments has risen to AZN 22 million ($12.9 million).
We note that this figure is not yet the final limit and that the market has much broader potential. At the same time, the number of QR payment transactions has increased 8.8 times," he said.
He recalled that one of the important projects currently being implemented is the migration of settlements through the Government Payment Portal from the existing system to the Instant Payments System.
Mahmudov stressed that there are currently 21 AZQR providers operating in the country.
"Alongside banks, holdings and fintech companies are also actively participating in this process. One of the main indicators of the spread of AZQR payments is the number of POS terminals that support this system.
Currently, 71% of POS terminals installed across the country already accept QR payments. This figure is expected to rise further, with the main goal being to bring the support level to 100%. However, old-generation POS terminals that do not support dynamic QR functionality still remain on the market.
In addition, the number of terminals accepting QR payments is forecast to increase further by the end of the year, with indicators expected to reach a high level," he added.