Mastercard Predicts Double Growth In Azerbaijan's Payment Digitalization Rate By 2027

(MENAFN- Trend News Agency) BAKU, Azerbaijan, February 3. The digitalization level of payments in Azerbaijan may double by 2027, according to a research document titled "The next wave of digitalization in Azerbaijan," released by Mastercard in collaboration with the Central Bank of Azerbaijan (CBA), Trend reports.

The document outlines a clear objective: to enhance financial inclusion in Azerbaijan while driving swift advancements in digitalization during the upcoming phase. The level of digitalization of consumer-to-business payments, which was 32% by the end of 2023, is projected to nearly double by 2027. The level of digitalization of business-to-business payments among SMEs (small and medium-sized business entities) is expected to increase from 5–10% to 15–20% over the same period.

The document noted that Azerbaijan has made significant progress, especially in the field of digitalization of consumer payments.

"In 2023, this indicator was 32% and, according to forecasts, was expected to increase to 38% by the end of 2024. The 'Cashless Azerbaijan' initiative, launched jointly with Mastercard in 2017, has played a decisive role in accelerating the digitalization of consumer payments, especially in the past few years. As a result of the successful implementation of these initiatives and the effective support of stakeholders, Azerbaijan has taken important steps in the field of digital transformation.

However, there is still significant development potential in the direction of digitalization of SME payments, especially in addition to consumer payments. Creating synergies between these two areas can allow Azerbaijan to claim regional leadership in digital payments," the document said.

The document recalled that, as a continuation of the 2017 initiative, the study titled "The next wave of digitalization in Azerbaijan," conducted in 2024, aimed to further accelerate the digitalization of payments and expand lending.

The study segmented consumer-to-business (C2B) and business-to-business (B2B) payment flows for both consumers and SMEs, analyzing and measuring each segment by payment methods and behaviors used.

A diagnostic analysis covering more than 15 key areas was conducted to identify the root causes of current difficulties in segments with a high dependence on non-digital payments. The study used market landscape assessment, market surveys, focus groups, stakeholder interviews, 'mystery shopping' methods, and Mastercard Advisors' deep knowledge of the economic dynamics of Azerbaijan.

The document pointed out that after the diagnostic phase, an assessment of the initiatives was carried out; within this framework, more than 60 initiatives from more than 40 countries that are at a similar stage of development to Azerbaijan's digitalization path were considered.

"Of these, 22 initiatives were considered highly relevant for Azerbaijan, and detailed roadmaps for their implementation were developed. This process identified the main strategy and practical steps to advance the next wave of digitalization," added the document.

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