1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends
Payments Landscape in Azerbaijan: Opportunities and Risks to 2023

Payments Landscape in Azerbaijan: Opportunities and Risks to 2023

  • June 2019
  • 45 pages
  • ID: 5392293
  • Format: PDF
  • By GlobalData


Table of Contents

Search Inside

Payments Landscape in Azerbaijan: Opportunities and Risks to 2023

Azerbaijan is a cash-oriented economy due to its high unbanked population, low financial awareness, and inadequate payment infrastructure.Azerbaijan ranks lowest in terms of card penetration and payment card frequency of use in comparison to its peers Poland, Russia, Ukraine, Romania, Turkey, and Kazakhstan, reflecting the dominance of cash in the economy.

However, with government initiatives to increase awareness of non-cash payments, financial literacy programs, charges on ATM cash withdrawals, and cash transaction limits imposed on individuals and businesses, payment cards will gain traction over the next five years.

Card payment transaction volume and value are anticipated to record compound annual growth rates (CAGRs) of 18.3% and 15.3% respectively over the forecast period (2019e-23f). The emergence of contactless technology, the adoption of new payment solutions, and growth in the e-commerce market will also support payment card market growth in Azerbaijan.

Debit cards in are mainly issued in the form of social and salary cards. According to the central bank there were 2.5 million social cards and 2 million salary cards in the country as of December 2018, collectively accounting for 80.7% of total debit cards in the country. All of the country’s major banks - including Kapital Bank, International Bank of Azerbaijan (IBA), Expressbank, AccessBank, and AGBank - offer specific payroll cards for employees.

The credit and charge card market is still in the developmental stage, with only 10.3 cards per 100 individuals in 2019. In terms of transaction volume and value, the credit card market registered a decline during the review period (2015-19e), mainly due to low levels of financial literacy, limited awareness of credit cards, and the declining number of credit institutions in the country.

The E-commerce in Azerbaijan grew significantly during the review period, rising from AZN12.8m ($7.5m) in 2015 to AZN111.9m ($66.0m) in 2019 at a review-period CAGR of 72.0%. The market is anticipated to reach AZN275.8m ($162.6m) in value by 2023. The proliferation of mobile internet users and smartphones are the key drivers of this strong growth. The availability of virtual cards exclusively for online shopping and alternative payment solutions such as PayPal, Wallet One, and Azerpay will help boost the e-commerce market over the forecast period.

The report "Payments Landscape in Azerbaijan: Opportunities and Risks to 2023", provides detailed analysis of market trends in Azerbaijan’s cards and payments industry.It provides values and volumes for a number of key performance indicators in the industry, including cards and credit transfers during the review-period (2015-19e).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2019e-23f). It also offers information on the country’s competitive landscape, including the market shares of issuers and schemes.

The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

The report provides -
- Current and forecast values for each market in Azerbaijan’s cards and payments industry, including debit and credit cards
- Detailed insights into payment instruments including cards and credit transfers.It also, includes an overview of the country’s key alternative payment instruments
- Analysis of various market drivers and regulations governing Azerbaijan’s cards and payments industry
- Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards

Companies mentioned: Kapital Bank, International Bank of Azerbaijan, Expressbank, AGBank, AccessBank, Unibank, Bank of Baku, YapiKredi Bank, Visa, Mastercard

- To promote electronic payments, Azerbaijan’s government implemented the “State Program on expansion of digital payments in the Republic of Azerbaijan for 2018-2020” in September 2018.

The program aims to reduce the share of cash transactions in the economy from 74% to 40%.To help achieve this, the government will expand innovative payment infrastructure supporting QR code-based transactions, cloud technology, and fast payments.

In addition, the government aims to launch the first stage of its Instant Payment System in the country by the end of 2019.
- To aid the government’s vision of a less cash-dependent society, banks in Azerbaijan are going digital. In January 2019, Pasha Bank introduced online bank account opening in five minutes for individuals and entrepreneurs. And in October 2018, Kapital Bank upgraded its BirBank mobile app to include QR code-based payments called QR-Pay. As of April 2019 over 500,000 users had downloaded the app. The increased focus on digitalization is anticipated to further drive electronic payments in the country.
- In December 2016 the central bank sanctioned amendments to the Law On Non-Cash Settlements effective from January 2017. As per the law, all monthly cash transactions were capped at AZN30,000 ($17,681.50) for VAT-registered businesses with monthly transactions worth over AZN200,000 ($117,876.63). Similarly, monthly cash payments for other taxpayers were limited to AZN15,000 ($8,840.75). All transactions over the relevant value must be paid electronically. Individuals who do not comply with the law will be fined 10% of the transaction amount, with subsequent increases to 20% and 40% if the offence is repeated a second and third time. In addition, the law also mandates that all salaries should be paid using non-cash methods. These measures are expected to encourage cashless payments in the country over the coming years.

Reasons to buy
- Make strategic business decisions, using top-level historic and forecast market data, related to Azerbaijan’s cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in Azerbaijan’s cards and payments industry.
- Assess the competitive dynamics in Azerbaijan’s cards and payments industry.
- Gain insights into marketing strategies used for various card types in Azerbaijan.
- Gain insights into key regulations governing Azerbaijan’s cards and payments industry.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
20% Off


  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Payments Landscape in New Zealand: Opportunities and Risks to 2022 (including Consumer Survey Insights)

Payments Landscape in New Zealand: Opportunities and Risks to 2022 (including Consumer Survey Insights)

  • $ 2750
  • June 2019

Payments Landscape in New Zealand: Opportunities and Risks to 2022 (including Consumer Survey Insights)SummaryGlobalData’s ’Payments Landscape in New Zealand: Opportunities and Risks to 2022 (including ...

Payments Landscape in Peru: Opportunities and Risks to 2023

Payments Landscape in Peru: Opportunities and Risks to 2023

  • $ 2750
  • May 2019

Payments Landscape in Peru: Opportunities and Risks to 2023SummaryThe use of cash for consumer payments remains highly prevalent among Peruvians.This is mainly due to the high unbanked population, inadequate ...

Ireland Cards & Payments: Opportunities and Risks to 2023

Ireland Cards & Payments: Opportunities and Risks to 2023

  • $ 2750
  • August 2019

Ireland Cards & Payments: Opportunities and Risks to 2023SummaryOur ’Ireland Cards & Payments: Opportunities and Risks to 2023’ report provides detailed analysis of market trends in Ireland’s cards ...


Reportlinker.com © Copyright 2019. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on