| Market Overview | |
| Payment Organisation | AzeriCard, owned by International Bank of Azerbaijan; MilliKart, owned by 17 banks and EBRD. |
| Domestic Card Brand | AzeriCard, (few) Millikart. |
| Market Structure | VISA and Mastercard are the principal payment cards issued in Azerbaijan. Also: American Express cards and Diners Club cards.
An estimated 50% of cards are VISA-branded. Salary cards have been widely introduced in Azerbaijan. Based on central bank figures, there were 19.90 million cards in Azerbaijan by end-2024, up by 17.57% from 2023. CBA, the central bank, has been mandated to promote electronic payments, with a focus on payments for state services and extension of payment facilities to the mass market. E-commerce payments sustained its uptrend, rising by 83% in 2024 compared to 116% between 2022-2023, while POS payments rose by over 49.2%. ATM withdrawals grew, but at a slower rate compared to previous years, at 9% in 2024. In 2016, a bank sector consolidation was carried out by CBA, according to the Financial Sector Modernisation Project (FSMP). State-controlled International Bank of Azerbaijan is the dominant player. |
| Notable Market Trends | Rollout: contactless cards, POS terminals, Mobile POS service, mobile banking apps, Debit Mastercard cards, VISA Debit, MPOS terminals. |
| Major Card Issuers | International Bank of Azerbaijan, Kapital Bank, Xalq Bank, Bank of Baku. |
| Major Card Acquirers | International Bank of Azerbaijan, Kapital Bank, Xalq Bank. |
| Major Card Processors | AzeriCard, MilliKart, and gateway Interbank Card Centre |
| Key Statistics 2024 | |
| Population | 10.18 million, 1.96 cards per capita |
| Cards | Debit: 17.64 million Credit: 2.25 million Total: 19.90 million |
| Card Payments | Debit: 358.97 million; value AZN 12.31 billion ($7.24 billion) Credit: 72.27 million; value AZN 2.13 billion ($1.25 billion) All cards: 622.25 million; value AZN 14.45 billion ($8.50 billion) |
| POS Terminals | 119,540 |
| POS Payments | All cards 622.25 million; value AZN 14.45 billion ($8.50 billion) |
| ATMs | 3,304 |
| ATM Withdrawals | All cards 177.33 million; value AZN 41.84 billion ($24.61 billion) |
| Note: The card data of the areas Nagorno Karabakh and Nakhchivan is included in the statistics reported. | |
| Note: Many banks in Azerbaijan did not disclose their individual card figures for 2022, respectively. It is believed that their information policy is more restrictive as the political environment changed dramatically in February 2022. | |
| Source: Central Bank of the Republic of Azerbaijan (CBA), individual banks, UN (population). | |
Introduction – Payments in Azerbaijan
Azerbaijan is a presidential republic with a unicameral parliament, the National Assembly (Milli Mejlis). It has a strategic location between East and West based on large reserves of oil and gas.
It is a member of the Commonwealth of Independent States (CIS), the Organisation for Democracy and Economic Development (GUAM), the Economic Cooperation Organisation (ECO), and the Organisation of the Black Sea Economic Cooperation (BSEC).
The Nakhchivan Autonomous Republic is a landlocked exclave of the Republic of Azerbaijan.
Nagorno-Karabakh is a landlocked region in the South Caucasus. Most of the region is governed by the Nagorno-Karabakh Republic, a de facto independent but unrecognised state established on the basis of the Nagorno-Karabakh Autonomous Oblast that was part of the Azerbaijan SSR in the Soviet Union. Azerbaijan has not exercised political authority over the region since the advent of the Karabakh movement in 1988.
Since the end of the first Nagorno-Karabakh War in 1994, representatives of the governments of Armenia and Azerbaijan had been holding peace talks mediated by the OSCE Minsk Group on the region’s disputed status.
The regional security situation deteriorated during 2014 when skirmishing broke out over Nagorno-Karabakh between Azerbaijan and neighbouring Armenia. Armenia occupied the disputed enclave. In September 2020, a war broke out due to the Nagorno-Karabakh conflict, with Armenian and Azerbaijanian forces clashing. A November 2020 ceasefire agreement ended the six-week war.
With most of the former Soviet Union polarised increasingly between states leaning towards the EU and those joining the Russian-led Eurasian Economic Community, Azerbaijan is attempting to follow an independent path.
But its foreign policy is officially described as “integration into European and Transatlantic security and cooperation structures including NATO, the EU, the Western European Union and the Council of Europe,” while also maintaining equal partnership relations with regional neighbours.
The launch of instant payments, a high mobile phone penetration rate and the continuing roll-out of contactless cards from a low number are the main trends driving digital payments in Azerbaijan in 2024, with several mobile payment initiatives being implemented with international payment schemes. It is expected that e-commerce volume and values will rise significantly over the next few years, thanks to bank efforts to expand mobile banking and app usage among Azeri consumers.
Banking Sector
Established in 1992 and renamed in 2009, the Central Bank of the Republic of Azerbaijan (CBA) is a state-owned independent legal entity operating in accordance with the Constitutional Law, the Law on the Central Bank of the Republic of Azerbaijan and the Law on Banks of the Republic of Azerbaijan. The Central Bank’s Credit Institutions Supervision Department, FIMSA, supervises the banking sector within Azerbaijan.
Payment systems in Azerbaijan are regulated by “Civil Code”, “Law of Azerbaijan Republic on banks”, “Rules on issuance of permissions and supervision of processing systems”, “Rules on security of information systems of banks” “Rules on issuance and use of payment cards”, and “Charter of FIMSA”.
As well as its strategic location between East and West, Azerbaijan is important because of its large reserves of oil and gas, which have enabled the economy to grow rapidly for most of the period following the break-up of the Soviet Union.
Azerbaijan’s President Ilham Aliyev has thrown his weight behind modernisation of the country’s payments system, through a series of presidential decrees supervised by CBA which is mandated to lift the level of cashless payments to those prevailing in developed countries. With support from the World Bank, the post office utility, Azerpost, is also being modernised to provide financial services, and has won recognition from Universal Postal Union for its progressive approach.
After the GDP decline in 2016, economic growth in Azerbaijan was almost flat in 2017 and 2018, rising slightly to 2.2% in 2019. GDP for 2020 was initially estimated to fall by around 3%, but the economic impact of the COVID-19 pandemic led to GDP falling by 4.3%. In 2021, GDP recovered to grow by 5.6%, largely driven by rising oil prices and gas exports. In 2022, GDP grew by 4.6% driven by non-energy sectors, supported by recovering demand and fiscal expansion. The fiscal accounts were buoyed by high global energy prices in 2022. The World Bank had expected growth to moderate to 2.2% in 2023. Against expectations, the rate of economic growth slowed to 1.1% in 2023 due to lower energy prices, declining oil production and subdued growth in the non-oil sector. By 2024, economic growth accelerated to 4.1% supported by strong consumption and public investment.
Since April 2017, exchange rate fluctuations have remained within a narrow band amid stringent monetary conditions and a recovery in the oil price. Inflation rose slightly from 2.3% in 2018 to 2.4% in 2019, and to 2.6% in 2020, largely due to a rise in food prices globally. Low non-food inflation was mainly attributable to deferred demand due to the pandemic. By 2021, average annual inflation was 6.7%, primarily driven by an increase in consumption in the non-oil economy. In 2022, inflation accelerated sharply to 13.8%, driven by the impact of import prices on food. Inflation softened to 8.2% in 2023 due to monetary policy tightening. In 2024, inflation softened significantly to an average of 2.1% as external pressures subsided and energy prices slowed.
Bank Sector Consolidation – Commenting in late 2012 on banking sector consolidation to date, the CBA chairman, Elman Rustamov, noted that over the previous 15 years, the number of Azerbaijan banks had fallen from 250 to 43 and called for the process to be completed, not least to match the scale of the country’s economy, which has grown threefold since 2003. However, in 2013 the share of banking sector assets controlled by the 32 smallest banks increased to 32% from 24% in 2012.
CBA announced in July 2012 that the minimum total capital requirement for existing banks and authorised capital of newly established banks would increase from AZN 10 million to AZN 50 million from January 2014. The process was designed to lead to 15 or so large and mid-sized banks.
In January 2016, the licenses of six banks were revoked by the CBA as part of the banking system restructuring: Teknika Bank, Atra Bank, Bank of Azerbaijan, Gandja Bank, United Credit Bank, and NBC Bank. In July 2016, CBA revoked the banking licenses of Dekabank, Kredobank, Parabank, and Zaminbank. In September 2016, the license of Bank Standard was revoked.
In February 2017, FIMSA, the Swiss Secretariat for Economic Affairs (SECO) and the World Bank launched the second phase of the Financial Sector Modernisation Project (FSMP2). The objective of the Project was to support stabilisation and development of Azerbaijan’s financial sector by enhancing the legal and regulatory framework, strengthening FIMSA supervisory capacity and improving the financial safety net to protect the interests of depositors and financial services to consumers.
Structure
In 2024, there were 22 commercial banks operating in Azerbaijan, including two state banks, 20 private banks and 9 banks with foreign capital. In addition, there are two branches of foreign banks and four representative offices of foreign banks. Additionally, 57 non-bank credit institutions, and 36 credit unions operate in the country. The banking sector is fully privatised apart from IBA and one other state-owned bank, though several private banks are owned by families close to the ruling elite.
| 1 - Banks in Azerbaijan | |||||
|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| Number of banks | 26 | 26 | 25 | 23 | 22 |
| State-owned | 2 | 2 | 2 | 2 | 2 |
| Private | 24 | 24 | 23 | 21 | 20 |
| - with foreign capital | 12 | 12 | 10 | 9 | 9 |
| - with 50%+ foreign capital | 7 | 7 | 6 | 5 | 5 |
| Bank branches | 455 | 479 | 487 | 475 | 485 |
| Source: Central Bank of Azerbaijan (CBA). | |||||
The Azerbaijan banking sector avoided upheavals such as those in Ukraine and Kazakhstan during the period of the global financial crisis. The sector is dominated by the state-controlled International Bank of Azerbaijan (IBA), which accounted for 26.7% of total banking sector assets as at end-2024. Assets of banks with foreign capital accounted for 15% of total banking sector assets in 2021. By 2024, among the banks in operation, 9 banks had foreign capital participation in their capital structure.
The five largest banks represent 74.7% of the total bank assets in Azerbaijan, but with a total of 23 banks at end-2024, there is a long tail of small-scale operations. According to CBA, the national network amounted to 485 bank branches at end-2024, down from 509 in 2019.
In 2017, AtaBank merged with Caspian Development Bank. DemirBank’s license was revoked in December 2017. Parabank’s license was revoked in 2016. However, the non-bank credit organisation PARA appeared in Azerbaijan in March 2017. In fact, this is the first bank in the history of the Azerbaijani banking sector that turned into a non-bank credit organisation. The process of abolishing banks’ licenses ended in 2017.
In 2020 banks’ restructuring continued in accordance with the ‘Strategic Roadmap on development of financial services in the Republic of Azerbaijan’. Measures to rehabilitate and capitalise the banking sector were continued to support lending. In general, banks increased share capital by AZN131.7 million in 2020, with the banking sector’s capital adequacy exceeding the regulatory requirement by more than two times.
In 2020, Azerbaijan’s central bank revoked licences of four banks whose capital position was negatively zoned with no recovery potential (AtaBank, AmrahBank, AGBank and NBCBank) and the banks were declared bankrupt by a court decision.
| 2 - Major Banks in Azerbaijan in 2024 | ||||
|---|---|---|---|---|
| Bank | Ownership | Assets (AZNm) | Assets ($m) | Assets in % |
| International Bank of Azerbaijan (IBA) | State: 92.18%; others: 7.82% | 14,143.9 | 8,320 | 26.7% |
| PASHA Bank | Pasha Group (AZ): 57%, Bless (AZ): 28%, investor (AZ): 15% | 8,618.6 | 5,070 | 16.3% |
| Kapital Bank | Pasha Group (AZ): 99.89%, others: 0.11% | 11,648.1 | 6,852 | 22.0% |
| Xalq Bank | Ideal Business-Ko: 50%, EuroStandard:33.85%, Amal Invest: 16.15% | 3,041.8 | 1,789 | 5.7% |
| Bank Respublika | Guliyev Family: 90.25%, SIDT (D):4.22% | 2,130.7 | 1,253 | 4.0% |
| UniBank | Eldar Garibov: 94.08%, Others: 5.92% | 1,752 | 1,031 | 3.3% |
| AccessBank | ADB: 19.9% EIB: 17.4%, IFC: 16.56%, Others: 46.14% | 1,497 | 881 | 2.8% |
| Azer Turk Bank | Azerbaijan Republic: 75%, Ziraat Bank 12.37%, others: 12.63% | 2,071 | 1,218 | 3.9% |
| RabitaBank | private investors (AZ) | 1,154 | 679 | 2.2% |
| Yelo Bank | Marina Kulishova: 98.94%, Investor (AZ): 1.06% | 1,262.9 | 743 | 2.4% |
| TuranBank | Eight companies (41.90%) and 20 private investors (58.10%) | 847.0 | 498 | 1.6% |
| Muganbank | Mehdiyev's Family: 89.35, Vafa Valiyeva: 10.65% | - | 0.0% | |
| ASB Bank | Anadolu Investment (TR): 98.43%, others: 1.57% | - | 0.0% | |
| Bank of Baku | NAB Holding: 35%, Private Investors: 28.89%, Individual Investors: 36.11% | 974.4 | 573 | 1.8% |
| Premium Bank | two private investors (84.79%); one legal entity (15.22%) | 640.9 | 377 | 1.2% |
| Ziraat Bank Azərbaycan | Ziraat Bankasi: 99.98%, others: 0.02% | 920.3 | 541 | 1.7% |
| Yapi Kredi Bank Azerbaijan | YKB: 99.8%, Others: 0.2% | 730.4 | 430 | 1.4% |
| Other banks | 1,567.6 | 922 | 3.0% | |
| Total | 53,001.4 | 31,177 | 100.0% | |
| Note: total banking assets were AZN 38.45bn ($22.62bn) as at end-2021. | ||||
| Note: the licenses of AtaBank and AGBank were revoked by the Central Bank in early 2020. | ||||
| 3 - Azerbaijani Bank Accounts - Key Figures | |||||||
|---|---|---|---|---|---|---|---|
| (000s) | 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y |
| Number of bank customers | 10,349.7 | 12,181.6 | 13,535.7 | 14,654.4 | 15,999.6 | 9.2% | 13.9% |
| - individuals | 10,238.2 | 12,059.7 | 13,395.4 | 14,513.7 | 15,846.7 | 9.2% | 14.0% |
| - businesses | 392.5 | 504.9 | 636.8 | 712.2 | 856.4 | 20.2% | 21.5% |
| - legal entities | 111.5 | 121.8 | 140.2 | 140.2 | 152.9 | 9.1% | 5.9% |
| Number of customer accounts | 24,842.8 | 26,587.8 | 32,132.0 | 39,590.7 | 47,279.0 | 19.4% | 17.5% |
| - of which current accounts | 20,863.8 | 22,034.0 | 25,911.8 | 31,492.1 | 37,016.4 | 17.5% | 16.7% |
| - of which for individuals | 20,633.1 | 21,770.3 | 25,603.7 | 31,171.8 | 36,636.6 | 17.5% | 16.7% |
| - of which deposit accounts | 222.6 | 256.8 | 299.9 | 325.6 | 500.7 | 53.8% | 4.8% |
| Note: figures from 2018 have been restated, CBA states " The change in indicators is due to the reclassification of data on the number of customers and accounts of statistical units." | |||||||
| Source: Central Bank of Azerbaijan (CBA). | |||||||
International Bank of Azerbaijan (IBA) is 92.18%-owned by Azerbaijan’s Ministry of Finance, with individuals and foreign shareholders owning the balance of the shares. In its results for 2024, IBA reported 73 branches servicing more than 2.9 million individual customers, and 18,000 legal entities.
IBA plays a key role in Azerbaijan’s payment card infrastructure by virtue of its 100% ownership of AzeriCard, the biggest card processor, formed in 1996. Also, IBA has subsidiaries in Russia and in Georgia.
In 2017, the IBA worked closely with the Ministry of Finance of Azerbaijan, CBA and FIMSA regarding its financial restructuring plan, in order to address issues relating to the IBA’s financial position and the sufficiency of its regulatory capital in accordance with the aims of the Presidential Decree dated 15 July 2015.
IBA began life as the Azerbaijani office of Vnesheconombank of the USSR. It obtained a banking licence from the central bank in 1992 and was converted into a joint stock banking company in 1999. IBA has since established International Bank of Azerbaijan Moscow as a 100%-owned subsidiary, the first active foreign subsidiary of any Azeri bank and also owns 100% of International Bank of Azerbaijan Georgia.
In June 2011, the State Property Committee chose PWC and the law firm Salans to manage the process of privatising IBA. However, the June 2012 deadline set for completing the process expired without any conclusion.
Judging by the trends in its retail and customer accounts, measured in AZN millions, IBA continues to maintain a strong focus on the retail segment.
As of 2024, IBA had 6,161,558 active payment cards, 1,025 ATMs, and 17,347 POS terminals.
In August 2020, in order to improve business activity of the government-owned organisations, the President of Azerbaijan approved a decree on establishment of Azerbaijan Investment Holding (AIH) and in November 2020, the list of state-owned companies to be transferred to the management of AIH was approved. The transfer of IBA to the management of AIH was approved by a presidential decree in September 2021.
PASHA Bank – Established in 2007, PASHA Bank is the largest private bank in Azerbaijan by total equity, and one of the top three private banks by assets. PASHA Bank is headquartered in Baku and has a total of six business centres and three branches cross Azerbaijan. It opened offices in Georgia (2013) and in Turkey (2014). PASHA Group, the main shareholder of PASHA Bank (57%), has major investments in the construction, real estate, insurance, travel sectors of Azerbaijan’s economy. Other shareholders are Bless (28%), and two individual investors (15%).
Kapital Bank – Privatised in 2008 and now controlled by the PASHA Holding conglomerate, Kapital Bank is Azerbaijan’s second biggest. Formerly United Universal Bank, Kapital was formed by the merger in 2000 of three major government banks in Azerbaijan, Agro-Investment Bank, Industrial-Investment Bank and Savings Bank.
As the successor to Savings Bank, its history dates back to 1874, when the first Savings Bank branch was opened in Baku. In 2024, Kapital Bank had the biggest branch network in Azerbaijan with 118 branches, 54 divisions, and more than 5 million individual customers and 22,000 legal entities.
Kapital Bank’s major shareholder is PASHA Group, which owns 99.87% of the bank’s shares, and the bank is ultimately controlled by the PASHAyev family and associates. According to western media reports, shareholders include the family of Azerbaijan’s first lady, Mehriban Aliyeva (born Mehriban PASHAyeva), and her uncle Hafiz PASHAyev, Azerbaijan’s former ambassador to the US.
Xalq Bank – Though founded only in 2004, Xalq Bank has become Azerbaijan’s fourth-biggest bank measured by total bank assets. Xalq is controlled by three shareholders: Ideal Business-Ko (50%), EuroStandard (33.85%) and Amal Invest Group (16.15%). In 2024, Xalq reported 30 branches servicing around 60,000 individual clients.
In January 2021, Xalq Bank launched a new mobile banking app to accompany its internet banking platform XalqOnline, marking the first internet and mobile banking system in the country, serving individual and corporate customers through a single platform.
In mid-2022 Xalq Bank launched XalqKart Petrol and Cashback cards. XalqKart Petrol OIL bonuses on cashless payments everywhere which can then be exchanged for free fuel at Azpetrol gas stations while the Cashback cards allow customers to receive cashback on favourable terms when making various purchases.
Unibank, one of the larger private, independent commercial banks in Azerbaijan, is 94.08% owned by Eldar Garibov, with the remainder held by minor legal and individual shareholders. As of 2024, the bank had 30 branches.
In 2021, Unibank established Leobank in Azerbaijan as a mobile-only bank. Leo customers are offered a VISA credit card.
Bank Respublica – Sparkassen International Development Trust, part of the Sparkassen-Finanzgruppe, owns 4.22% of Bank Respublika, which was established in 1992. DEG’s investment was made in 2005; the balance of the shares is owned by Azeri shareholders. In 2024, the bank had 35 branches and one service point.
With encouragement from the central bank, investment by foreign banks has stepped up in recent years. Turkish banks have been the most prominent, with YapiKredi setting up a subsidiary, YapiKredi Bank Azerbaijan in 1998. Though originally supported by the World Bank’s IFC arm with a 20% shareholding, it is now owned by YapiKredi.
The other significant Turkish-influenced bank, Azer-Turk Bank, was established by T.C. Ziraat Bank and Agrarcredit of Azerbaijan in 1995; T.C. Ziraat Bank retains a 50% interest.
YapiKredi Bank Azerbaijan is principally a corporate bank but reported a network of eight branches, one customer service unit, and one exchange office, providing banking services to 140,000 customers as at end-2023. Although trading under the name of YapiKredi, the bank is now owned by the Koc family, a Turkish Group that took over Yapi in Turkey in 2007, with participation from Italy’s UniCredit Bank.
The parent bank said that the rapid growth of the credit card platform at its subsidiary in Azerbaijan was a significant development. Since the launch of the platform in 2012, YapıKredi said it had become a leading bank in the Azerbaijan credit card POS acquiring sector, with a 1.0% market share in 2022 and a 10% credit card volume market share. By 2024, the parent bank claimed a 15.3% market share in number of credit cards and 15.3% market share in POS Acquiring volume (inclusive of ATM).
Bank of Baku – NAB Holding, a Turkish conglomerate, is a founder shareholder (with 35% currently) in Bank of Baku, a progressive mid-sized bank, and was involved in the launch of Bank of Azerbaijan. The oil company Azpetrol owns a further 28.89%. The other shareholders are investor Hikmat Abuzar oglu Ismayilov (31.11%, sole owner of “Azsigorta”), and investor Elchin Hamid Oglu Isayev (5%). As of 2024, the bank had 19 branches and three servicing outlets.
VTB Bank (Azerbaijan) – VTB, the Moscow-based banking group whose strategy is to expand into Eurasian countries, purchased 51% of AF-Bank in 2008, changing the name to VTB Bank (Azerbaijan) in February 2009.
VTB Bank (Azerbaijan) provides corporate as well as retail banking services. In 2020, VTB Bank (Azerbaijan) operated five branches. Effective mid-2019, VTB Group (RU) owned 99.99% of the shares in its subsidiary, with 0.01% held by individuals.
Following the outbreak of the Russia-Ukraine conflict, as of mid-2022, VTB said it planned to maintain its presence in Azerbaijan, Armenia, Belarus, and Kazakhstan.
Digital Banking
All retail banks in Azerbaijan offer online banking and mobile banking apps to their clients. In addition, services are provided through AzeriCard’s “MobilBank” service.
There is no bank-independent electronic banking standard in Azerbaijan; each bank offers its own proprietary system for banking purposes. In 2024, the State Statistical Committee recorded internet penetration of 90%. Poor telecom infrastructure, along with low information and communication technology literacy, expensive consumer equipment, and high tariffs for satellite connections remain key obstacles to ensuring greater internet access across the country. Internet remains expensive for most of the population, with Azerbaijan lagging behind its neighbours on indicators such as Internet speed and affordability. In early 2017, the Ministry of Communications followed through with a plan to roll out more free Wi-Fi spots in public areas around central locations in Baku. Only two operators, AzerTelecom and Delta Telecom, are licensed to connect international IP traffic.
There is a positive trend in the development of digital banking in Azerbaijan. As of end-2024, all banks operating in the country, including the AzerPost LLC provide Internet banking. 20 banks and Azerpost provide mobile banking services. In 2024, total number of transfers from current accounts of bank customers in paper carriers and through digital banking was 694.7 million units, while the value made AZN 456.8 billion. 93.5% of total transfers in terms of number and 77.4% in terms of value were made through digital banking. In 2024, the value of customer transfers through Internet banking services increased by 21% to AZN 274.7 billion, and the value of customer transfers through mobile banking services increased by 38% to AZN 63.9 billion year-over-year.
Table 4 shows the emerging penetration of communication infrastructure for banking services. At the end of 2024, Azerbaijan had a mobile penetration rate of 108%, with 93.1% of users accessing the internet via mobile phone.
| 4 - Communications in Azerbaijan | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Fixed telephone lines (000s) | 1,485.7 | 1,484.3 | 1,443.6 | 1,403.5 | 1,175.0 | -16.3% | -4.8% |
| Mobile cellular subscribers (000s) | 10,193.4 | 10,817.1 | 10,752.8 | 10,836.0 | 10,995.3 | 1.5% | 0.4% |
| Mobile phone subscriptions per 100 capita | 102.2% | 104.8% | 106.9% | 107.0% | 108.0% | 0.9% | 0.2% |
| Proportion of households with an Internet access | 84.8% | 86.5% | 87.8% | 88.6% | 90.2% | 1.8% | 2.7% |
| Distribution by purposes of Internet use | |||||||
| - of which for: ordering or selling goods and services | 4.1% | 4.6% | 5.2% | 5.2% | 5.2% | 0.0% | 10.2% |
| Purposes and nature of Internet use at enterprises | |||||||
| - of which for: banking and financial services | 23.0% | 24.0% | 25.0% | 25.0% | 25.0% | 0.0% | 2.1% |
| Note: approximately 80% of fixed telephone lines and 70% of mobile subscribers are in urban locations. | |||||||
| Source: The State Statistical Committee of the Republic of Azerbaijan, ITU. | |||||||
IBA has reported fluctuating numbers for its electronic banking, which it defines as “all services of the bank provided to public via ATMs, information booths, internet banking and mobile banking services.” Among the services are payments to mobile and conventional telecoms providers, internet service providers, instant money transfers and electronic deposits.
Reporting in February 2013, IBA said that 464,900 transactions valued at AZN 14.1 million had been conducted by electronic channels in 2012, compared with 243,800 worth AZN 9.9 million in 2007. IBA added that 90% of 2012 transactions were conducted via ATMs, while 94.5% of the total number of transactions were made to mobile network operators for payment of phone bills. However, the value of these transactions was only AZN 2.63 million, or 18.6% of the total. IBA provided no subsequent updates.
In 2018, IBA launched a new mobile banking app providing digital banking services, IBAm. The digital services include:
- Information about customer accounts
- Types of plastic cards, their status, as well as information on the current balance
- History of transactions on card and current accounts
- Blocking and unblocking plastic cards
- Activation and deactivation of the SMS notification service
- Transfers to cards of both the International Bank of Azerbaijan and cards of many other banks of the country
- Transfers from card to card and from account to account
- Information about the location of bank branches, ATMs and payment terminals
- Constantly updated exchange rates and currency converter
- Payments for utilities, mobile communications, cable television and other services
Additionally, three banks, IBA, Kapital Bank and Bank Respublika have connected to the VISA Token Service technology in Azerbaijan and several more banks are being connected. The VISA Token Service was launched in September 2019, and in May 2021, the CBA and VISA signed an agreement on strategic cooperation to expand digital payments in Azerbaijan.
The new strategic agreement will accelerate the development of non-cash payments in the Azerbaijani market, the introduction of innovative payment solutions, as well as through mobile devices, as well as the implementation of initiatives to expand financial literacy and inclusiveness. In mid-2021, VISA reported that after the launch of the Token Service, there was a 189% increase in the number of mobile payments and a 264% increase in value.
In November 2020, PASHA Bank, along with Mastercard and the Umico mobile app, enabled consumers to pay with in-app cards by scanning barcodes and receive extra bonuses by paying via Masterpass in the Umico mobile app. Consumers can any payment card to the Umico app and to have purchases scanned with barcodes.
In 2018, Kapital Bank launched its BirBank mobile banking app, which by mid-2021 had been downloaded over 3 million times with the bank claiming it is the most popular mobile app in the country. The bank also launched QR code payments and QR code ATM cash withdrawals through the app, and NFC payments for Mastercard cardholders.
In May 2021, Kapital Bank and VISA announced the launch of VISA B2B Connect to address limitations in existing processes by significantly shortening funds settlement speed. VISA B2B Connect enables Kapital Bank and its corporate and business clients to send and receive corporate cross-border business-to-business (B2B) payments quickly, securely, and at a lower operational cost. VISA B2B Connect is currently available in more than 80 markets around the world.
In July 2021 Kapital Bank joined Sberbank’s instant money transfer system, using mobile phone numbers. The service allows customers to transfer money to Kapital Bank cards via Sberbank’s mobile app. In June 2021 Kapital Bank launched Mushtari Bank Mobile, a new mobile banking app for business customers.
In January 2021, Xalq Bank launched a new mobile banking app to accompany its internet banking platform XalqOnline, marking the first internet and mobile banking system in the country, serving individual and corporate customers through a single platform. In May 2021, the bank launched a VISA-branded virtual card activated in its mobile app, enabling users to purchase goods and services online and offline with contactless functionality. Bank and non-bank customers can use the mobile app to use the card.
Over 2021 and 2022, PASHA Bank, Xalq Bank, Kapital Bank, and Bank Respublika launched Google Pay and Apple Pay services for their customers. In 2022, Bank Respublika also introduced Open Banking based on modern authentication models, enabling both the bank and customers to use an expanded portfolio of banking instruments.
In October 2022, the E-PUL Azerbaijani payment system together with Unibank announced the joint issuance of virtual Visa cards that are linked to Apple Pay and Google Pay. The eCards can be used for card-to-card money transfers and to pay for purchases in foreign online stores.
Payment Services
In 2025, the more than 300 different payment services offered in Europe can be grouped into:
- Card brands and card types
- E-Money and prepaid products by issued brand
- Account-based payment services by issued brand, e.g. IBAN-based SCT/SDD services
- Advanced payment services. e.g. wallets by issued brand
- Digital payment services, e.g. digital scheme wallets by issued brand
Card Brands and Card Types
All retail banks in Azerbaijan issue cards. Additionally, salary cards are widely introduced in Azerbaijan. Most cards are internationally branded and there is no significant domestic scheme.
Azerbaijani card products like consumer cards, commercial cards and purchasing cards range from classic cards to gold cards and platinum cards. Additional card features (e.g. picture cards, bonus points, PIN selection at ATMs and card control by SMS notification) are used to attract cardholders. Also, individual picture cards and collector cards can be issued on demand. Further, card-to-card P2P services have been launched. In 2021 and 2022, the EMV migration continued.
From July 2023, banks and other card issuers will no longer issue Maestro cards. Instead, they will need to issue Debit Mastercard. Maestro was launched in 1991 and was the world’s first debit card that could be used via an online network. About 400 million Maestro cards are in circulation worldwide, mainly across Europe. However, Maestro is not enabled for the demands of e-commerce and cannot be used for online or in-app payments, hence the decision to phase it out in favour of Mastercard Debit products. Visa announced that Electron cards will be phased out globally in 2024. The features of the Visa Debit card have been modified to match the features of the Visa Electron card.
Debit cards issued are Debit Mastercard and VISA Debit cards. There are no V PAY cards in circulation. Additionally, there are domestic AzeriCard cards and Millikart cards.
Credit Cards issued are cards branded VISA, Mastercard, American Express, or UnionPay. The Royal Bank of Baku began issuing JCB cards in 2018.
Prepaid Cards – Leading Azerbaijani banks issue prepaid cards, including virtual prepaid cards for internet use only.
Co-branded cards – In Azerbaijan, few co-branded cards are in circulation.
Contactless Cards and form-factors
Contactless Cards – The banks in Azerbaijan now issue contactless cards. In June 2014, IBA became the first Azeri bank to issue VISA payWave-branded cards, having previously launched Mastercard contactless cards. According to estimates, all plastic cards will have a contactless payment function from early 2022.
In late 2019, the Azericard payment system launched contactless payment services to its bank customers. In mid-2020, VISA and Mastercard stated that around 30% of payments in Azerbaijan are contactless, with the share of cashless transactions growing every year.
Enabling contactless payments in public transit systems is a key element of modernising Azerbaijan’s payment infrastructure. In June 2021, the CBA, Azerbaijan Railway, VISA, and the International Bank of Azerbaijan launched a project on payment of fares in suburban railways, with contactless payment cards issued by any bank, at all stations of the Absheron Ring Railway, which provides high-speed passenger transportation between Baku and Sumgait. Contactless fares can be paid at stations of the circular railway using contactless payment instruments of all banks. In September 2022, Visa stated that 95% of transit passengers in Azerbaijan opt for contactless payments when buying transit tickets. In October 2022, Visa launched Mobility & Transit Transaction (MTT) technology for the first time in Azerbaijan. This technology allows combining payment for travel on public transport for 24 hours in a single transaction, which is deducted by a single payment at the end of the day. This has been launched in all 14 stations of the Baku Ring Route and passengers can pay the fare not only by bank cards but also using devices with built-in NFC-module (phone, watch or payment ring).
In 2022, Kapital Bank, in partnership with Visa, announced the launch of Azerbaijan’s first Mobile POS solution based on Visa Tap to Phone, a technology that turns modern Android smartphones or tablets with an NFC (Near Field Communication) chip into a full-fledged payment terminal for accepting contactless payments. In 2023, three additional banks – Rabitabank, ABB (International Bank of Azerbaijan), and Bank Respublika – rolled out Tap to Phone to business clients. By 2024, Yelo Bank and PASHA Bank also adopted the technology and introduced it for clients.
As of 2022, 9.8 million cards in circulation in Azerbaijan supported contactless payment technology, from 7.5 million in 2021, while the number of POS terminals that accept contactless payments increased by 55.6% to 68,373, representing 85% of the country’s POS terminal network. The number and value of contactless payments increased from 2021 by 2.6 and 2.0 times respectively. As of December 2024, Azerbaijan’s banking sector reported a total of 19.9 million bank cards in circulation, marking a 17% increase from the previous year. Notably, 80.4% of these cards, approximately 16 million, support contactless payment technology.
With the launch of Google Pay and Apple Pay services by leading banks in 2021 and 2022, contactless payment usage is rising exponentially. As of end-2023, 17 banks offered the ‘Google Pay’ service, and 4 million payments worth AZN 85.7 million were made through this service in 2022. Payments made through Google Pay in 2023 reached AZN 813.2 million ($478.4 million), marking a 9.5-fold increase compared to 2022. The total number of payments processed via Google Pay rose to 39.6 million, reflecting a 9.9-fold increase from the previous year. In 2024, the CBA reported that the number and value of payments made through Apple Pay and Google Pay doubled year-over-year.
Interchange Fee Arrangements
International and Intra European Non-EEA Interchange Fees are set by the members of the international card schemes to be applied in case of cross-border transactions or foreign cards used in Azerbaijan, respectively. The effective rates of Mastercard and VISA Europe can be found on the respective Mastercard and VISA websites.
Domestic Merchant Interchange Fee (DMIF) for Azerbaijani cards is defined by Mastercard and VISA, respectively.
Specific interchange fee schedules for Azerbaijan are not publicly detailed, and no explicit data was found in recent sources about Azerbaijan’s exact Visa or Mastercard interchange rates for 2025.
However, the following apply:
- Interchange fees in Azerbaijan, as in other countries, are transaction fees paid by acquiring banks (merchant banks) to issuing banks (cardholder banks) to cover the costs and risks of card issuance and transaction processing.
- Visa and Mastercard set interchange rates that may vary by transaction type (credit vs. debit cards), channel (in-store vs. card-not-present/e-commerce), card type (consumer, commercial, premium), and merchant industry sector.
- Like most countries, Azerbaijan’s interchange fees follow the standard fee structures set by Visa and Mastercard, adjusted within a range suitable for the local economic environment and card usage patterns.
- Typical interchange fees globally range from about 0.05% (for debit card-present) to around 2.7% plus fixed cents for some credit card-not-present transactions. Azerbaijan likely falls within similar ranges but may have negotiated specific rates with regional payment processors.
E-Money
In April 2018, the CBA and Financial Market Supervision Authority, FIMSA, presented the draft Law on Payment Services and Payment Systems, including Electronic Money. By mid-2021, further progress was made to develop the Draft Law on Payment Services and Payment Systems, although no definite timeline for its expected introduction has been announced.
In July 2019, the government announced the launch of the AzerPay “PostPay” e-wallet system, designed to offer integrated electronic money transfers through the country’s network of regional post offices. Users will be able to take out cash in post offices, while they can also use these locations to add more cash to their e-wallets. In addition to using post offices, customers who sign up to the new service will be able to use their bank cards, such as credit or debit cards, to maintain their e-wallet.
The Law on Payment Services and Payment Systems, passed by the Azerbaijani parliament in July 2023 and effective from November 2023, establishes a comprehensive regulatory framework for e-money and payment service providers, including banks, non-bank credit institutions, postal operators, and e-money institutions. The law mandates licensing, risk management, fraud prevention, and data security standards aimed at ensuring operational integrity and consumer protections.
The Central Bank of Azerbaijan (CBA) has issued perpetual licenses to multiple companies to operate as e-money organizations and payment institutions, with 23 licensed entities as of early 2025 and additional applications under review. These institutions enable secure nationwide electronic money issuance and payment services.
The digital payments ecosystem in Azerbaijan has seen rapid growth, with total transaction volume via bank cards exceeding AZN 126 billion ($74.1 billion) in 2024, representing a 27% increase over 2023. Over 67% of transaction volume and 91% of the number of domestic payments are cashless, showing widespread adoption of e-money and card payments.
Digital Account-to-Account Payment Services
In the Yearbooks, account-based payment services are classified as bank payment services on bank accounts offered by banks or by independent payment initiation service providers (PISP).
Credit transfer is an important cashless payment instrument in terms of both volume and value. The majority of all credit transfers are automated. They are used by companies for salary and supplier payments. High-value and urgent credit transfers are cleared and settled via AZIPS, the national RTGS system, in real time. Low-value, non-urgent and high-volume credit transfers are processed via the BCSS on a same-day basis.
Direct debits are used for low-value recurring payments such as utility bills. Their usage is low. Direct debits are processed via the BCSS on a same-day basis.
As in many European countries, bank transfers have been adopted for online payments, enabling consumers to pay direct from their bank account as an alternative service to payment cards.
In October 2020, a 24/7/365 Instant Payment System (IPS) was launched for individuals, businesses, and public institutions to make instant mobile payments. In mid-2021, efforts to expand the infrastructure capacity of the IPS included new IPS functionalities, allow registering customers and their bank accounts to obtain balance information and maintaining operations based upon Open Banking principles for the first time in Azerbaijan.
During 2021, the coverage and functionalities of the IPS expanded, including the creation of QR codes to allow small businesses to accept cashless payments. At the same time, the CBA developed and approved the ‘Methodological Guideline on QR code payments in the Republic of Azerbaijan’. To support measures on the expansion of the IPS scope and create favourable conditions for participating banks and the national operator of postal communication to stimulate individuals to use opportunities of the system the Central Bank decided not to charge service fees from participating organizations for the use of the system for QR code payments and transfers by individuals (excluding individuals engaged in entrepreneurial activity).
As of 2022, 24 banks, the AzerPost LLC, the State Treasury Agency of the Ministry of Finance and the Mortgage and Credit Guarantee Fund were integrated into the IPS. By 2024, the number of operations executed through the IPS increased by 36.3% and the value rose by 30.2% from 2023.
Advanced Payment Services
In the Yearbooks, advanced payment services are classified as online wallets, e-wallets, and/or mobile wallets with any type of payment service chosen by the wallet user to complete the payment.
In selected Azerbaijani online shops, the online wallets PayPal, Yandex and Webmoney are offered as payment means.
PayPal – Currently, Azerbaijani consumers can send money using PayPal to 59 countries abroad but cannot receive payments.
As of end-2024, PayPal reported 434 million active customer accounts globally, up 2.1% from 426 million in 2023. This consisted of 398 million customer active accounts and 36 million merchant active accounts across approximately 200 markets. PayPal’s total payment volume increased to $1.68 trillion (up from $1.53 in 2023) and customer engagement grew to an average of 60.6 transactions per active account, driving 3% growth in transactions per active account at the end of 2024.
During 2020, with consumers worldwide embracing digital wallet capabilities, the company launched several related services including QR Code Checkout, Buy Now Pay Later, Crypto purchasing, and Xoom direct transfers to bank accounts and debit cards.
In June 2018, PayPal continued its shopping spree with a $400 million cash deal to acquire e-commerce platform Hyperwallet. The acquisition followed deals to buy Venmo, Xoom, Sweden’s iZettle (renamed Zettle) for $2.2 billion and AI-based merchant marketing outfit Jetlore, as PayPal bids to extend its reach to all corners of the payments market.
In May 2022, PayPal Ventures invested in Modulr, an embedded payments platform for digital businesses, as part of a $108 million Series C funding round led by General Atlantic, Blenheim Chalcot, Frog Capital, and Highland Europe. Modulr delivers payments infrastructure for over 200 top-tier customers, including Revolut, Wagestream, Sage and BrightPay, and processes an annualised transaction value of more than £100 billion. In 2023, PayPal is exploring the sale of Xoom, its international money transfer subsidiary, in a bid to cut costs and focus on high-growth business areas. Also, Stax Payments – an all-in-one payment provider for businesses – announced its partnership with PayPal in July 2023. This partnership will allow PayPal’s users to easily make payments with more than 20,000 merchants of Stax through a fast checkout process as well as new payment options such as Buy-now-pay-later solutions.
In 2023, PayPal launched its own US dollar-denominated stablecoin, PayPal USD (PYUSD), which is fully backed by US dollar deposits, short-term US treasuries, and similar cash equivalents and designed for digital payments and Web3. Eligible US PayPal customers who purchase PayPal USD will be able to transfer the token to external wallets, send person-to-person payments, fund purchases at checkouts supported by PayPal, and convert cryptocurrency holdings to and from PayPal USD.
In January 2024, PayPal launched AI-powered features to drive personalised offerings for both merchants and customers based on the data it possesses. These features include Smart Receipts (for merchants) which predicts what shoppers may want to buy next from the merchant. The merchant can then offer personalised recommendations, and cashback offers on this receipt. A major feature for users is CashPass which will use give users personalized cashback offers based on an AI analysis of their spending activity.
In March 2024, PayPal launched a complete suite of payment processing tools for online small businesses in the UK, Canada, and across more than 20 European markets. The PayPal Complete Payments package enables small businesses to accept an expanded range of payment instruments including PayPal, buy now pay later, Apple Pay, Google Pay, credit and debit cards, and alternative payment methods from around the world. By April 2024, PayPal added new features to its complete payments solution for small businesses to enable small businesses to accept a range of payments including PayPal, Venmo and PayPal Pay Later products. PayPal also gave small businesses access to four new features to help them drive payment acceptance and enhance how they run their business, and this will include Apple Pay as a checkout option.
In 2025, PayPal significantly enhanced its offerings for small businesses by introducing PayPal Open, a unified commerce platform that consolidates all of PayPal’s merchant solutions into a single interface. This platform provides small businesses with access to a comprehensive suite of tools, including payment processing, financial services, and AI-driven insights, all designed to streamline operations and foster growth.
Digital Payment Services
In the Yearbooks, digital payment services are classified as card-based payment services using EMV tokenisation security on the internet combined with HCE NFC technology in case of contactless payments at POS terminals.
As of mid-2021, the Click to Pay online payment checkout service was not yet available in Azerbaijan. Click to Pay replaces the previous MasterPass and VISA Checkout services respectively. Click to Pay is a joint service between Mastercard, Visa, Discover, and American Express, enabling consumers to make secure one-click payments without having to enter card details or passwords online.
Contactless payments on cards using Apple Pay, Samsung Pay, or Google Pay (previously Android Pay) made by foreign users at contactless POS terminals in Azerbaijan are processed as payments on contactless cards.
G Global contactless transaction values are projected to reach approximately $15.7 trillion by 2027, up significantly from around $4.6 trillion in 2022, driven by widespread adoption of contactless mobile and card payments. Contactless mobile and wearable payments are expected to grow by over 220%, while contactless card payments will increase by approximately 119% in the same period.
Contactless ticketing spend is forecasted to surge by more than 400% globally between 2022 and 2027, with mobile NFC ticketing powered by OEM wallet solutions such as Apple Pay, Google Pay, and Samsung Pay playing a critical role in enabling seamless transit and event ticketing across multiple markets.
By 2027, 99% of all smartphones are estimated to support contactless payments, up from 94% in 2022, with average contactless transaction values roughly $28.20 for Apple Pay and $33.40 for Google Pay. Digital wallets—including PayPal, Apple Pay, and Alipay—represent the majority of global mobile payments. Mobile wallets accounted for around half of global e-commerce payment transactions as of 2022 with approximately 2.8 billion users worldwide, nearly half concentrated in Asia-Pacific, led by large markets such as China, India, and Southeast Asia.
In North America and Europe, mobile payments increasingly overlap with broader “alternative payments” encompassing all non-cash, non-card payment methods, reflecting shifting consumer preferences towards convenience and digital-first financial experiences.
Overall, the global contactless payment market is witnessing rapid growth driven by technology advances, expanding wallet usage, and evolving consumer behaviours, signalling a transformative shift towards universal cashless and contactless commerce by the end of the decade.
Apple Pay has become one of the world’s most used digital payment methods. Its user base increased from 521.4 million to 535.8 million in 2022 and now sits at 785 million users worldwide at end 2024.
This payment method is also available in over 85% of US merchants and 60% of stores globally.
As of August 2024, the estimated total Apple Pay in-store sales now sit at $268 billion, up from $213 billion last year.
As of 2023, Apple Pay processed 14.2% of all online consumer payments and 5.6% of all in-store purchases globally, global transaction volume (2025 estimate) is $7.6 trillion.
In the US its Apple Pay users are measured as ~ 63.9 million (2025 forecast), with in-store U.S. retail sales via Apple Pay sitting at ~ $268 billion (as of August 2024).
Putting it all together, Apple Pay is increasingly becoming an effective customer acquisition and retention feature for Apple. In June 2022, Apple Pay added Apple Pay Later, its buy-now-pay-later service, allowing users to split purchases into four equal instalments with no interest or fees. Initially launched in the US, the service is expected to roll out to other countries during 2023. In 2023, Apple launched its Card savings account from Goldman Sachs with a 4.15% annual percentage yield. Apple Wallet users can set up and manage a savings account directly from Apple Card in Wallet, with no fees, no minimum deposits, and no minimum balance requirements.
As of mid-2025, 16 banks in Azerbaijan supported Apple Pay. According to the CBA, 21.8 million payments in the amount of AZN 658 million were made via Apple Pay in 2022.
Google Pay current data shows around 820 million active users across 45 global markets.
In January 2022, it was reported that the company was planning to transform Google Pay into a “comprehensive digital wallet”, following the app’s reported slow growth and the shutdown of Plex. In April, it was reported that Google was planning to revive the “Google Wallet” branding in a new app or interface and integrated with Google Pay. Google officially announced Google Wallet on May 11, 2022, at the 2022 Google I/O keynote. The app began rolling out on Android smartphones on July 18, replacing the 2018 app and co-existing with the 2020 Google Pay app in the US. While the app name itself was changed from Google Pay to Google Wallet, the service name of actually paying for things online or in-store remains “Google Pay.”.
In the US, Google Pay has over 165 million users. Also, Google Pay is used on nearly 800,000 websites as a secure payment gateway. Roughly 20% of all mobile purchases are made using this digital payment processor. Google Pay ranks 3rd among mobile payment methods globally. In Russia, it has an online usage distribution of 35.18% and has recorded approximately 1,281,838 transactions online. Available in 19 countries, 30% of Google Pay’s active users are millennials. It is one of Canada’s top 5 online payment apps and is the primary mobile payment method for 2,193 businesses worldwide. In India, Google Pay boasts 67 million active users and holds 36.10% of the mobile application market. Its widespread adoption and significant market share highlight its growing importance in the global digital payment landscape.
As of mid-2025, 20 banks in Azerbaijan supported Google Pay.
Samsung Pay is available in 29 countries worldwide and has an estimated 150 million users. Samsung Pay works with a broad range of Samsung Galaxy phones, including the latest Galaxy S22 and newer models, as well as many previous models like the Galaxy S8.
Samsung claims that its system will work with almost all point-of-sale systems: NFC, magnetic stripe and EMV (Europay, MasterCard and Visa) terminals for chip-based cards. In June 2022, Samsung Pay was renamed to Samsung Wallet in the US, UK, France, Germany, Italy, and Spain. Along with the renaming came new features such as the ability to store digital assets and digital keys within the Wallet app.
Samsung Pay is not yet available in Azerbaijan. No local Azerbaijani bank cards are currently supported.
Overview of Cashless Payments
Cash is the predominant method of payment in Azerbaijan for both individuals and companies. Credit transfer is an important cashless payment instrument in terms of both volume and value. The use of direct debits is low.
The use of payment cards in Azerbaijan, particularly debit cards, has increased rapidly in recent years.
Cheques are only issued to juridical persons (legal entities) and not to individuals. They can only be used for the purpose of cash withdrawal from accounts.
Exchange Rates
The Azerbaijani currency is the new Manat (AZN), established in 2006.
| 5 - Average Exchange Rates | |||||
|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| 1 EUR in AZN | 1.9398 | 2.0125 | 1.7929 | 1.8384 | 1.8400 |
| 1 USD in AZN | 1.7000 | 1.7000 | 1.7000 | 1.7000 | 1.7000 |
| Note: all figures have been restated. | |||||
| Source: Central Bank of Azerbaijan (CBAR). | |||||
Market Infrastructure
Central Bank of Republic of Azerbaijan (CBA)
CBA, the central bank, has been mandated by Azerbaijan’s President Ilham Aliyev to promote electronic payments, with a focus on payments for state services and the extension of payment facilities to the mass market. In May 2013, first deputy governor Alim Guliyev reported that CBA had delivered to the government a package of complex measures on stimulation of cashless payments, expansion of cashless payments infrastructure and enhancement of the legal basis.
Guliyev said that IT systems of public institutions had been integrated with the National Payment System within the e-Government structure, with the key step being transformation of the Government Payment Portal (GPP) – created by CBA – into a unified payment platform to accept taxes, duties, rent fees, administrative fines, and other budget payments.
In 2023, the GPP continued to expand in the reported period, with 11 central executive power institutions, three state agencies, four utility enterprises, five landline, and mobile operators, 122 judicial bodies, 19 insurance companies, 1,438 municipal bodies, and other Socially important institutions integrated to the GPP. In 2024, efforts to expand the coverage of the GPP continued and payments for over 1,200 services are collected through the GPP. The total volume of transactions conducted over the GPP increased by 16.8% to 153.9 million units for a total value of AZN 8.1 billion in 2024, a growth of 16.4% from 2023. 82.0% of payments in terms of the number and 71.3% in terms of the value were cashless.
The process of driving towards cashless payments began when CBA was given responsibility for the implementation of Azerbaijan’s ‘State Programme on Development of National Payment System in the Republic of Azerbaijan in 2005-2007.’
The broad objectives of the 2005-2007 programme were to ensure usage of electronic payment systems by all businesses and individuals in general; to create a single electronic payment area covering the entire country; to improve access to financial services; and to replace cash in circulation with non-cash means of payment.
Within CBA, the key unit is the Payment Systems and Settlements Department. Its mission is described as “to create up-to-date digital payment systems, ensure their stable and non-stop operation, permanently develop and improve them given international trends.”
The principal components of the Azerbaijani payment system are AZIPS (Azerbaijan Interbank Payment System, which manages the RTGS system), XOHKS (the Retail Payment System, formerly BCSS) and KOMIS (Centralised Information System of Mass Payments – see below), all of which are owned and managed by CBA.
AZIPS is constructed on the basis of the SWIFT network. All banks and some government departments are system members, along with Azerpost branches. All banks are likewise members of XOHKS. KOMIS infrastructure supports APUS, the Azeri public utilities payment system, which enables users to pay utility companies online at the website www.apus.az (see below). By mid-2012 Azerpost and all the banks were linked to APUS. Gas, water and electricity service payments formed the bulk of APUS transactions (see below) and unofficial estimates are that more than 4 million Azeri are KOMIS users.
In May 2012, the newly formed National Payment Council held its first meeting. NPC’s members are drawn from CBA, the Ministry of Taxes, the Ministry of Communication and Information Technologies, the Ministry of Customs, the State Securities Committee and top commercial banks.
According to CBA, NPC was launched at the direct instigation of President Aliyev “to coordinate the work needed to increase the volume of cashless turnover in the country, alignment of payment card utilisation to the level of developed countries, integration of public structures to the National Payment System within the e-Government framework, as well as involvement of all economic agents and the broad population to more active use of e-payment services.”
The president’s office is well aware of the importance of a modernised payments system and has issued several decrees since the 2005-2007 plan, including ‘On Some Measures to Organize e-services of Public Institutions’ (2012) and ‘On some measures on organisation of electronic services by state bodies’ (2011). These call for real time e-payment of duties and other payments, not only to improve efficiency, but also to reduce corruption.
The State Program on Expansion of Digital Payments in the Republic of Azerbaijan for 2018-2020 is strategically aiming to significantly expand the cashless payments in the economy and reduce the volume of cash payments, to strengthen the base of financial resources of the banking sector, and to reduce transactional costs associated with cash circulation.
The Program covers systematic and comprehensive reform efforts aimed at elimination of institutional factors that prevent the development of digital payments, improvement of financial intermediation, introduction of innovative payment systems, and strengthening of financial inclusion.
As a result of the Program, annual volume of cashless payments is expected to increase by approximately AZN 17 billion, corresponding to 7% increase in the share of cashless payments annually. The total share of cash payments in economic transactions is expected to decrease from 74% to 40% in five years upon implementation.
In 2020, the CBA together with the representatives of the SWIFT developed an action plan for the financial system to transit to the ISO2002 standard, which will allow the establishment of single data formats on exchange among payment system participants, minimisation of risks in payment transactions, decrease resources allocated to automation (finance, time, human), and creation of wide reporting functionalities.
Also during 2020, in an effort to promote financial inclusion, the CBA together with the Azerbaijan Bank Association, developed and introduced a free package of basic banking services proposals for low-income groups, including free opening of bank accounts for low income groups, delivery of free debit payment cards, no service fees on encashment operations, no service fee on payments made via e-banking services and a number of other discounts.
By 2021, as a consequence of measures taken in the State Program on Digital Payments, the CBA reported that card infrastructure had been improved, cashless payments increased, and the blockchain-based Digital Identification System had been developed. As a result, the Digital Payments Strategy of the Central Bank of Azerbaijan for 2021-2023 has been developed.
The main goal of the Digital Payment Strategy is to provide convenient and affordable payment services for government, businesses, and citizens. The strategy has set a goal to annually increase the share of non-cash payments in total turnover by 5%. Within the framework of this strategy, the adoption of legislation on payment services and payment systems, the introduction of the ISO 2002 standard, the preparation of unified API standards, and the creation and commissioning of the Know Your Customer (e-KYS) electronic system are being considered.
For 2023, the CBA targets to increase the weight of electronic banking in customer transfers from current accounts to 85%, the total market share of cards that support contactless payments to 75%, and the weight of cashless circulation in domestic operations to 48%.
Centralised Credit Registry (CCR)
The CBA is responsible for administration of the country’s Centralised Credit Registry (CCR), which developed strongly from 2010 onwards after five years of low-key operations since its launch in 2005. Growth in 2012 and 2013 in particular reflects the widening of the credit card market by mid-sized banks such as Bank Respublika, DemirBank and Bank of Baku.
In 2018, the CCR became the Azerbaijan Credit Bureau in partnership with eight banks. As of mid-2025, ACB, being one of the main components of the financial infrastructure, has signed contracts to exchange information with 268 organizations that include Central Bank of the Republic of Azerbaijan, the Ministry of Internal Affairs, State Tax Service under the Ministry of Economy of the Republic of Azerbaijan, Ministry of Justice of the Republic of Azerbaijan, Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan, Ministry of Labour and Social Protection of Population of the Republic of Azerbaijan, 22 banks, 24 banks under liquidation process, 55 non-bank credit organizations, 10 non-bank credit organisations under liquidation process, 34 credit unions, four credit unions under liquidation process, 23 leasing companies, 15 insurance companies, seven insurance companies under liquidation process, three mobile, three utility services operators, 54 retail companies, five factoring, one electronic money institution, one collector and two pawnshop companies.
MilliKart
The National Card Processing Center, MilliKart, was created by CBA with the aim of developing card payments and completing the architecture of the National Payment System. It was launched in 2005 as a department of the CBA.
In 2006, this became MilliKart, formed by 18 banks with share capital of AZN 4 million. In January 2009, the EBRD acquired a 10% stake of MilliKart’s capital.
MilliKart is certified by VISA and Mastercard as a card personalisation bureau and third-party processor. DemirBank and Unibank were the first banks to migrate their processing fully to MilliKart. Azerpost is also a MilliKart card processing customer.
In 2024, MilliKart reported 358 ATMs, 25,977 POS terminals, and 519,863 cards serviced. In 2023, MilliKart described its transactions as follows: support of active card accounts, 90%; support of POS terminals, 83%; card personalisation, 90%; SMS banking, 75%; printing PIN envelopes, 90%.
To help support MilliKart’s mission, the CBA established the Interbank Card Centre (ICC) with the mission to “increase the effectiveness and safety of card payments.” All banks and card processing centres operating in the country are ICO members. AzeriKard LLC, MilliKart LLC, Kapital Bank OJSC, and Yapı Kredi Bank Azerbaijan CJSC are directly integrated to the ICO infrastructure, while exchange of information with other banks is maintained via the service centres which work for them.
The company holds full membership licenses with Mastercard, Visa, and UnionPay and functions as a certified card personalization bureau and third-party processor.
In 2025, MilliKart upgraded its Visa communication channel to the TranzAxis open payment platform by Compass Plus as part of a strategic modernization project aiming to improve scalability, security, and service breadth.
PCI DSS 3.2 compliance ensures high levels of cardholder data security. Services include 3D Secure implementations like Verified by Visa and Mastercard SecureCode to secure e-commerce transactions.
MilliKart developed M+, a mobile banking solution for Android and iOS, supporting omnichannel payments including online, POS, and mobile device payments. This product serves the needs of small businesses to large enterprises, helping banks deliver competitive acquiring services.
In 2025, MilliKart was granted an open-ended license to operate as a payment system operator by the Central Bank of Azerbaijan, formalizing its critical role in the national payment ecosystem.
AzeriCard
Now wholly owned by International Bank of Azerbaijan, AzeriCard is the biggest and longest-established card processor in Azerbaijan. AzeriCard is the first Processing Centre in Azerbaijan completely certified by international payment schemes: Mastercard, VISA, American Express, Diners Club, JCB and UnionPay.
AzeriCard actively implements new state-of-the-art, high-technology projects such as: municipal transport payments by contactless bank cards, payments for telecom services, communal payments, customs and tax payments, Internet and Mobile Banking, Card-to-Card transfers (Kart Transfer, VISA Direct, Mastercard Money Send), insurance and deposit payments via ATMs, different Loyalty programs, Multicurrency card and others, including 3D Secure for e-commerce.
At mid-2025, AzeriCard provided its processing services for 15 banks in Azerbaijan and abroad. In 2016, AzeriCard stated that it handled transactions through more than 1,700 ATMs and more than 40,000 POS-terminals in shops and cash-paying departments. During 2016, AzeriCard processed 2.2 million cards. Subsequent updates were not provided.
With the start-up of MilliKart, AzeriCard had lost about 0.5 million cards, 100 ATMs and 1,000 POS terminals by mid-2010. In June 2013, Bank Standard announced the migration of its cards, amounting to about 50,000, to its own processing centre, and said it had sold its AzeriCard shareholding to IBA. Kapital Bank was reported to be migrating its 2.2 million cards portfolio in-house as long ago as May 2009.
Core functions of AzeriCard are clearing and authorisation of card transactions, embossing and encoding of plastic cards. International transactions are settled through correspondent accounts, via the relevant card organisation, while settlement for domestic transactions is done through CBA.
The integration of IBA into APUS, the national utility payments system went live in January 2010, enabling bank cards to be used for paying electricity, gas, water and other utility bills as well. AzeriCard has connected a number of online merchants to its processing centre, particularly mobile network operators and internet service providers. During 2009, AzeriCard completed integration of all cards operating in its system into 3D-Secure technology, with the 3D password being made available through ATMs for use on the internet.
Other AzeriCard services and projects include municipal transport payments by contactless cards, internet and mobile banking, card-to-card transfers, insurance and deposit payments via ATMs, loyalty programmes and multicurrency cards.
In January 2013, with the support of OpenWay’s WAY4 Cash by Code technology, AzeriCard launched a new service, “Cash by Code” through “MobilBank”, enabling cash withdrawals and transfers at ATMs using only a mobile phone. Users can download the MobilBank application to their mobile phone from the AzeriCard website, or from Google or Apple. In August 2013, AzeriCard said the service was being activated by 600 new users every month.
To use this service, the cardholder selects “Cash by Code” in the main menu of “MobilBank” in his mobile, then selects the currency and enters a sum to be transferred. The system creates a special code. The “MobilBank” user can withdraw cash from the ATM using this code or pass the code to the recipient in any convenient and secure way. The recipient enters the code at an ATM and gets money even without a card.
Clients offering “Cash by Code” to customers in August 2013 included IBA, AGBank, Bank Respublika, Bank Technique, Nikoil, Parabank, Turan, Amrahbank, ATA Bank, Silk Way Bank, Bank of Azerbaijan, and Xalq Bank.
In July 2020, AzeriCard launched contactless NFC payments for smartphones. Customers of its bank partners can download their bank’s mobile payments app to make NFC payments at POS locations.
In November 2020, AzeriCard and VISA signed a partnership agreement to develop innovative payment solutions and digital payment services in Azerbaijan.
In January 2021, AzeriCard began developing a new mobile app for bank clients, which will combine the services of all banks served by AzeriCard and will simplify the use of all banking services for clients. At the initial stage, the application will integrate the services of banks that are most ready for the conditions of open banking. The project is being implemented jointly with VISA.
In August 2022, AzeriCard announced that Google Pay was available for partner banks of AzeriCard.
AzerPost
With most of its 1,500 branches across Azerbaijan offering financial services options in 2024, Azerpost has been given the task by government of providing basic financial services, under a universal service obligation, in rural areas without a banking presence. Azerpost received the necessary licences in April 2010, including debit and credit card issuance. Issuance of Mastercard cards began in 2013, when Azerpost issued 9,684 Mastercard-branded payment cards.
Over the three years to 2010, Azerpost received $8 million of funding from central government and $17.75 million from the World Bank’s IDA to upgrade its systems and reported that 1,200 of its branches were fully automated and connected to the central network at end-2010. Azerpost is recognised by the Universal Postal Union as one of the most ambitious developing country postal financial services suppliers.
Specific tasks under the World Bank/IDA programme are:
- Development of financial services, including electronic payments (benefits, social allowances, money transfers, etc.), collecting of payments (utility payments), deposits, improvement of money transfers and issuance of debit cards
- E-government services – issuance of certificates and business and personal documents by local government agencies and collection of taxes and duties
- E-business services – e-trade, access to internet network and data bases.
Azerpost’s 2010-2012 strategy was to capture 60% of the domestic postal market and 20% of personal financial services. Over the period, it aimed to increase client accounts to at least 500,000 and annual transactions to at least 5 million.
Azerpost began issuance of plastic cards for salary and pension payments in 2011 and expected initially to issue 100,000 cards, with pensions to be distributed via the ATM and cash terminal networks.
For 2012-2015, Azerpost’s strategy was to increase the number of individual accounts to 1 million, create an in-house processing centre and extend the distribution of card-based pensions and salaries in rural areas. CBA, the central bank, sees Azerpost as a key component of the national payment system infrastructure, particularly in rural areas. Apart from the breadth of its overall branch network, 63 post offices were authorised to act as CBA agents.
Azerpost launched electronic domestic and international money transfers in 2003. Azerpost says that electronic transfers are made within 15 minutes, even to rural areas. Many AzerPost branches are connected to the Western Union international money transfer service.
In June 2019, Azerpost launched the PostPay e-wallet in partnership with the Information and Computing Centre (ICC), and the Ministry of Transport, Communications and High Technologies. PostPay is available in all regions and remote locations of Azerbaijan where post offices operate. It is expected that cash transactions conducted by Azerpost will also be carried out via PostPay in the near future.
The PostPay e-wallet is also available as a mobile app and enables users to conduct money transfers, account and balance checks and QR code payments. In December 2019, Azerpost integrated online payments into its website to encourage online banking and e-commerce.
In March 2022, in order to expand access to financial services in the country, an agent banking model was launched as part of the joint cooperation between Azerpost under the Ministry of Digital Development and Transport and Access Bank. According to the agreement reached between Azerpost and Access Bank, the agent banking project will cover several other regions.
Azerpost has undergone deep modernization since 2021, implementing key digital projects: AzPostMobile app for individuals, internet banking for businesses, and Mobil POS service for SMEs. These innovations facilitate broader access and integration of financial services through digital channels.
The volume of e-commerce parcels handled by Azerpost increased by nearly 40% in 2024, signalling growing importance as a logistics and e-commerce enabler in Azerbaijan and the broader region. Azerpost plans to expand operations, including more modern postal centres in recently liberated regions like Karabakh.
Financially, Azerpost showed steady growth in 2024 with revenues reaching 73.5 million manats ($43 million) and net profit of 4.5 million manats, underscoring the sustainability of its business model amid ongoing transformation.
The Central Bank of Azerbaijan has issued licenses to numerous post offices for banking and financial services. Azerpost itself issued over 120,000 new payment cards in 2023 and operated 72 ATMs, 554 POS terminals, and hundreds of mobile payment terminals including SmartPay, supporting cashless transactions nationwide.
In August 2025, Azerpost signed a Memorandum of Understanding with the National Depository Center of Azerbaijan to facilitate securities transactions and joint regional development projects, expanding its financial services beyond traditional postal offerings.
Azeri Public Utilities Payment System (APUS)
Azeri Public Utilities Payment System (APUS) is a unit of the CBA, which enables users to pay utility companies online at the website www.gpp.az or in bank branches, at ATMs and by direct debit. KOMIS, formerly CISMP, the Centralised Information System of Mass Payments, holds details of more than 7 million individuals and companies. Following completion of the electronic subscriber database, APUS was launched in July 2008, with every subscriber being allocated a single registration code. There is no fee for subscribers to the system.
Azerpost and all Azerbaijani banks are linked to KOMIS and the APUS system, along with the four processing centres. Most payments are made with cash through Azerpost branches (see Table 6).
In 2024, the public utilities involved include the state-owned gas and oil group, the electricity producer Azerenergy and the water company AzarSu. The APUS system also enables payments to fourteen government and municipal organisations for fines and taxes. In addition, the system enables payments to four communication companies for payment of mobile and fixed line telecoms bills: Azercell Telecom, Azerfon, Bakcell and Stasionary Phone Services.
As the performance of the APUS System shows, card payments to service providers are still at an emerging stage of development in Azerbaijan. They accounted for 64.01% in 2024, with cash payments for the balance, though this figure rose by 34% between 2023 and 2024.
The number of card payments has grown substantially since 2009. However, in 2024, they amounted to 78.63 million card payments (+34.5% from 2023) compared with 30.95 million cash payments – this latter figure declined by 1.6% from 2023.
The total value of payments to service providers in 2024 was AZN 6.67 billion, giving an ATV per cash payment of AZN 52.86. Taking card payments alone, the 78.63 million made in 2024 amounted to AZN 5,581.31 million (up 35.0% Vs 2023), an ATV per card payment of AZN 70.98 – up 0.4% compared to 2023 thanks to the growing popularity of card payments.
| 6 - Payments through the APUS Network | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Number of payments (m) | 49.71 | 54.67 | 85.02 | 100.71 | 122.85 | 22.0% | 20.3% |
| - of which cash payments (m) | 30.58 | 32.85 | 32.04 | 31.47 | 30.95 | -1.6% | -2.6% |
| - of which card payments (m) | 19.14 | 21.82 | 42.67 | 58.46 | 78.63 | 34.5% | 42.2% |
| Value of payments (AZNm) | 3,216.34 | 3,979.34 | 4,770.07 | 5,632.85 | 6,675.82 | 18.5% | 15.6% |
| - of which cash payments (AZNm) | 1,493.54 | 1,712.76 | 1,707.62 | 1,682.16 | 1,636.25 | -2.7% | -2.1% |
| - of which card payments (AZNm) | 1,722.81 | 2,266.58 | 3,062.45 | 4,134.31 | 5,581.31 | 35.0% | 31.4% |
| ATV per cash payment (AZN) | 48.85 | 52.13 | 53.29 | 53.45 | 52.86 | -1.1% | 0.6% |
| ATV per card payment (AZN) | 90.02 | 103.88 | 71.77 | 70.72 | 70.98 | 0.4% | -7.6% |
| Source: State Payment Portal of CBA. | |||||||
APUS Payments Breakdown by Banks – In 2024, Azerpost accounted for 21.42 million (69.23%) of the 30.95 million cash payments on APUS. Headed by Kapital Bank and TuranBank, the other banks recorded a total of 9.52 million (30.77%). In 2024, Kapital Bank accounted for 39.23% of the 73.59 million card payments on APUS.
| 7 - Number of Cash Payments on APUS By Main Banks | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Azerpost | 23,848,062 | 24,339,359 | 23,023,947 | 22,170,475 | 21,428,970 | -3.34% | -4.10% |
| Kapital Bank | 2,112,361 | 2,995,779 | 2,840,368 | 2,880,605 | 3,060,976 | 6.26% | 0.40% |
| TuranBank | 930,089 | 1,792,157 | 1,655,891 | 2,548,907 | 3,121,644 | 22.47% | 81.97% |
| International Bank of Azerbaijan (IBA) | 850,563 | 1,169,986 | 1,157,946 | 1,130,639 | 1,127,176 | -0.31% | -3.03% |
| Expressbank | 1,088,138 | 1,007,690 | 743,327 | 772,228 | 753,880 | -2.38% | -1.77% |
| AFB Bank | 391,389 | 398,402 | 280,381 | 246,016 | 210,312 | -14.51% | -15.52% |
| Xalq Bank (People's Bank) | 134,633 | 177,955 | 230,985 | 254,271 | 276,306 | 8.67% | 10.04% |
| Naxcivanbank | 91,908 | 139,813 | 180,719 | 252,064 | 319,141 | 26.61% | 26.67% |
| Azer-Turk Bank | 196,653 | 111,664 | 23,697 | 15,213 | 12,056 | -20.75% | -47.02% |
| Muganbank | 109,839 | 96,903 | 82,202 | 70,835 | 57,350 | -19.04% | -21.51% |
| Bank Respublika | 65,943 | 85,155 | 89,514 | 90,148 | 92,118 | 2.19% | 0.68% |
| Rabitabank | 85,052 | 65,761 | 26,561 | 16,510 | 9,274 | -43.83% | -43.99% |
| Bank of Baku | 16,173 | 24,828 | 30,341 | 30,763 | 31,848 | 3.53% | 3.18% |
| other banks | 655,163 | 447,640 | 1,675,439 | 990,541 | 453,353 | -54.23% | -26.27% |
| Total | 30,575,966 | 32,853,092 | 32,041,318 | 31,469,214 | 30,954,404 | -1.64% | -2.60% |
| Note: totals include all other Azerbaijani banks and so are more than the sum of the banks shown. | |||||||
| Note: in 2021, CBA revoked the bank licences of NBC Bank, Amrah Bank and Ata Bank. | |||||||
| Source: State Payment Portal of CBA. | |||||||
| 8 - Number of Card Payments on APUS by Main Banks | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Kapital Bank | 14,453,227 | 11,873,742 | 16,764,555 | 22,548,326 | 28,869,534 | 28.03% | 22.20% |
| International Bank of Azerbaijan (IBA) | 527,627 | 3,012,663 | 9,699,330 | 13,579,062 | 17,476,580 | 28.70% | 129.90% |
| Unibank | 1,866,544 | 2,430,665 | 8,628,348 | 12,252,254 | 15,320,474 | 25.04% | 100.71% |
| Pasha Bank | 521,246 | 1,234,222 | 2,199,437 | 3,739,043 | 5,150,856 | 37.76% | 65.03% |
| Bank of Baku | 187,181 | 308,649 | 457,021 | 600,338 | 835,123 | 39.11% | 32.75% |
| Yapi Kredi Bank | 203,956 | 203,493 | 184,666 | 211,202 | 234,395 | 10.98% | 1.87% |
| Bank Respublika | 171,610 | 201,744 | 237,832 | 300,047 | 385,745 | 28.56% | 20.48% |
| AccessBank | 161,298 | 192,478 | 167,265 | 215,483 | 280,680 | 30.26% | 17.65% |
| Expressbank | 160,658 | 154,413 | 114,942 | 121,345 | 114,638 | -5.53% | -8.23% |
| Azerpost | 6,028 | 6,246 | 7,334 | 8,749 | 11,156 | 27.51% | 20.77% |
| other banks | 878,440 | 2,200,992 | 4,212,146 | 4,032,532 | 4,909,873 | 21.76% | 40.78% |
| Total | 19,137,815 | 21,819,307 | 42,672,876 | 57,608,383 | 73,589,054 | 27.74% | 40.34% |
| Source: State Payment Portal of CBA. | |||||||
Card Issuers – Overview
The banks in Azerbaijan issue credit cards, charge cards, debit cards and prepaid cards in combination with bank accounts. Addressing the specific needs of personal banking and business banking, the card portfolio is composed of consumer cards, business cards and corporate cards.
Dedicated card products are offered for the individual client segments: families, millennials, students, affluent clients, small business clients, corporate clients, and even basic account clients. The credit cards offered range from classic cards to gold cards and platinum cards.
The Azerbaijani retail banks issue debit cards branded Debit Mastercard, Maestro, VISA Debit or Electron, and delayed debit cards and credit cards branded Mastercard or VISA. International Bank of Azerbaijan was previously the exclusive American Express issuer.
Out of Azerbaijan’s 22 authorised banks, as of January 2016 there were 29 VISA issuers, 27 Mastercard issuers and 23 issuers of both brands. According to CBA, 30 Azeri banks issued cards in 2016. The CBA did not provide subsequent updates.
Other than IBA and Kapital Bank, significant issuers include Xalq Bank, PASHA Bank, Bank of Baku, AtaBank and Yapi Kredi Bank Azerbaijan, all of which have promoted credit cards which have become increasingly popular in recent years. In January 2018, Muganbank started issuing UnionPay cards. Table 9 illustrates the card brands issued by the Azeri banks as of mid-2025.
| 9 - Leading Card Issuers in Azerbaijan | ||
|---|---|---|
| Domestic Issuers | Issued Card Brands | Owned by |
| International Bank of Azerbaijan (IBA, incl. AzeriCard) | Mastercard, VISA, AmExp, UnionPay; Debit Mastercard, VISA Debit | state: 96.37%; others: 3.63% |
| Xalq Bank | Mastercard, VISA; Debit Mastercard, VISA Debit | Ideal Business-Ko: 50%, EuroStandard:33.85%, Amal Invest: 16.15% |
| Kapital Bank | Mastercard, VISA; Debit Mastercard,VISA Debit | Pasha Group (AZ):88.6%, others: 11.40% |
| UniBank | Mastercard, VISA; Debit Mastercard | Eldar Garibov: 87.03%, Others: 12.97% |
| PASHA Bank | Mastercard, VISA; Debit Mastercard, VISA Debit | Pasha Group (AZ): 57%, Bless (AZ): 28%, investor (AZ): 15% |
| Bank of Baku | Mastercard, VISA; ViSA Debit, Debit Mastercard | NAB Holding: 35%, Private Investors: 28.89%, Individual Investors: 36.11% |
| AccessBank | Mastercard, VISA; VISA Debit, Debit Mastercard | ADB: 19.9% EIB: 17.4%, IFC: 16.56%, Others: 46.14% |
| Bank Respublica | Mastercard, VISA; VISA Debit, Debit Mastercard | Guliyev Family: 90.25%, SIDT (D):4.22% |
| Express Bank | Mastercard, VISA; VISA Debit, Debit Mastercard | Azenko Group (AZ): 40%, other AZ interests: 60% |
| VTB Bank Azerbaijan | VISA, Mastercard | VTB Bank (RUS): 51%, AtaHolding (AZ): 49% |
| YapKredi Bank Azerbaijan | Mastercard; Debit Mastercard | YKB: 99.8%, Others: 0.2% |
| other banks | Mastercard, VISA; VISA Debit, Debit Mastercard | Private investors |
| Note: some banks in Azerbaijan issue also domestic AzeriCard cards and local cards (e.g. Millikart cards). | ||
| Source: PCM research | ||
Outlook – By mid-2025, Azeri card issuers face the following challenges:
- The enactment of the Payment Services and Payment Systems Law in July 2023
- Rollout of contactless cards and online/mobile bank payment services combined with mobile apps
- Implementation of 3D-Secure 2.3, launch of digital wallets, in-app payments, in-store payments
- Competition from card-less payment service providers: PISPs, AISPs, FinTechs
- Tokenisation security combined with HCE NFC and card credentials stored-on-file
- Open Banking ecosystem and demanded access to card accounts (XS2A)
The Payment Services and Payment Systems Law, enacted in July 2023 and effective November 2023, constitutes a fundamental regulatory overhaul. It introduces licensing requirements for payment service providers, e-money institutions, and operators, imposing enhanced AML/CFT controls, risk management, data protection, and operational compliance standards. Payment providers had until May 2024 to get licensed and ensure compliance. This law streamlines digital payments and institutionalizes e-money and payment system operators regulation in Azerbaijan.
The implementation of 3D-Secure 2.3, advanced tokenization techniques, and rollout of digital wallets are critical to enhancing payment security and user experience. Azerbaijani issuers and acquirers are increasingly adopting these technologies to reduce fraud and increase consumer trust in card-present and card-not-present transactions.
The Open Banking framework, formalized by CBA by late 2024, mandates secure and standardized access to payment accounts (XS2A) for Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs). This fosters competition by enabling FinTechs and non-bank players to offer new payment services, challenging traditional card-centric business models and requiring issuers to innovate and partner strategically.
The competition from card-less payment providers including mobile wallets, FinTechs, and PISPs is growing strongly. This drives card issuers to invest in omni-channel solutions, enabling seamless in-app, in-store, and online payments with mobile app integration to maintain relevance and capture market share.
Further challenges include integrating Host Card Emulation (HCE) NFC payments with card credentials stored-on-file for mobile and wearable payments. This requires updated infrastructure, cooperation with tokenization networks, and consumer education to drive adoption.
The evolving regulatory landscape also includes enhanced fraud prevention and strong customer authentication requirements aligned with global best practices, requiring investment in AI-based fraud detection and dynamic risk management.
Lastly, broader interconnected reforms in e-accounting, e-procurement, and state finance digitalization launched in 2025 (eg. Azerbaijan’s “Digital State Finance” system) create new touchpoints for card and digital payments integration, expanding issuer opportunities but increasing complexity.
Card Processing and PSPs
In Europe, the payment processing industry is composed of card processors, ATM/POS network hub processors, e-/m-payment service processors (PSPs), and specialised processors (e.g. CSM processors, TSM services).
In Azerbaijan, card issuer processing services range from technical issuer processing, including card printing, to full cardholder processing services. They include all types of cards and card technologies allowing for card use at multiple channels (i.e. at ATMs, POS terminals, on the internet and in-store – mobile payments in the future).
Acquirer processing services in the country range from technical acquirer processing, including POS terminal services, to full merchant processing services.
In 2024, the leading card processors were MilliKar and AzeriCard. Besides, Kapital Bank (KapitalKart), PASHA Bank and YapiKredi Bank operate their own in-house processing centres. Also, Royal Bank operates an in-house processing centre for its ‘Royal Card’ programme. From April 2016, the Interbank Card Centre (ICC) has acted as a domestic payment gateway.
AzeriCard is the card-processing centre owned by the International Bank of Azerbaijan (IBA). AzeriCard is used by 15 banks in Azerbaijan and abroad, to process domestic and international card transactions. It is completely certified by International Payment Systems: Mastercard, Visa, American Express, Diners Club, UnionPay and JCB.
Millikart began its activity as a card processing centre and, like AzeriCard, handles both domestic and international card transactions. Then the company was transformed into a limited liability company with a stable shareholder structure consisting of 18 banks and the EBRD (10%). Millikart provides card processing services to banks, Azerpost, non-bank credit organisations, investing, insurance and other companies.
As of 2024, the participants of the of the charter capital of Millikart AtaBank, Demirbank, Azer-Turk Bank, Bank of Baku, Zaminbank, Turanbank, Amrahbank, Xalq Bank, KredoBank, AccessBank, Para Bokt, Rabitabank, Bank Respublika, Bank Standard KB, Texnikabank, Unibank, and Urbis Holding participated in Millikart.
Interbank Card Centre – In April 2016, the Central Bank of the Republic of Azerbaijan (CBA) created an Interbank Card Centre (ICC) to ensure full control over the domestic transactions by supporting local VISA and Mastercard branded payment card authorisation, transaction routing, interbank clearing, and settlement, including full cycle of disputes case processing.
Implementation of the ICC started in 2014, and it is now in operation at the CBA. The processing and clearing of transactions on cards issued by the resident banks that were carried out in the country with between processing centres is now performed by the ICC. This process was carried out by the international card schemes (VISA and Mastercard) until this time.
The ICC provides the interface between infrastructures of all organisations involved in processing activity in the country. Thus, domestic transactions with payment cards issued by resident banks are processed through this infrastructure. Alongside this, the infrastructure also ensures the resolution of disputed cases on transactions and clearing and completion of final settlements between participants. Transactions over the ICC are conducted in accordance with the Collective Agreement on Conducting transactions over the ICC, the legislation of the Republic of Azerbaijan.
In addition to established processors like MilliKart and AzeriCard, several banks including Kapital Bank, PASHA Bank, and YapiKredi Bank operate their own in-house processing centres, providing issuer and acquirer processing services. Royal Bank also operates an in-house processing centre specifically for its ‘Royal Card’ program.
Azerbaijan’s payment ecosystem includes a growing number of licensed fintech companies and PSPs, such as PashaPay, which partners with Mastercard to enhance digital financial services, offering innovative digital payment products, cross-border money transfers, and fraud prevention technologies.
The national payment infrastructure includes AZIPS, the Azerbaijan Interbank Payment System, which handles real-time gross settlement for high-value transactions, complying with ISO 20022 standards to facilitate secure and fast settlements domestically and cross-border.
HÖP, the Low-Value Payments Clearing and Settlement System, complements AZIPS by managing retail, low-value payments. Together, these systems enable a robust, efficient, and scalable payment platform in Azerbaijan that supports over 91% cashless payments as of early 2025.
Mobile wallet adoption is rapidly increasing in Azerbaijan, with at least 12 licensed mobile wallet providers, including GoldenPay, PashaPay, United Payment, and others. Apple Pay and Google Pay also operate in the country, enhancing convenience and seamless integration with domestic banking.
Cooperation agreements with global payment networks, such as the recent memorandum between Azerbaijan’s Economy Ministry and Visa, aim to expand digital payment solutions and financial inclusion, particularly supporting SMEs and fostering innovation in digital finance.
Programs like Mastercard’s TəhsilPlus card, introduced in 2025, highlight efforts to develop inclusive, multifunctional payment solutions dedicated to specific sectors (education professionals), integrating salary payments, digital wallet access, and rewards.
Emerging fintech startups like PayRiff, KidFi, Clopos, and Make It Smart are contributing innovation to online payments, payment gateways, financial literacy, and cloud-based POS solutions tailored to the Azerbaijani market.
Overall, Azerbaijan’s card processing and PSP sector is dynamic and evolving rapidly, supported by strong national payment infrastructure, international partnerships, increasing fintech involvement, and active government and regulator support to promote cashless digital payments.
Online Payment Service Processors (PSPs)
Online payment service processors (PSPs) are specialised technical processors for all kind of secure online payments and mobile payments. Some of them also offer virtual PSP platform services (VPSP) for bank acquirers who want to take advantage of being a kind of ‘internet network processor’.
Online shops of merchants are directly connected by an API interface or a hosted payment page either to the internet payment gateway of a bank acquirer, or they are connected to multi-acquirers through a PSP.
PSPs usually partner with more than one card acquirer and payment initiation service providers. Core services offered by PSPs may include payment gateways to card acquirers and other online payment service providers, online payment processing, risk management services, and collection services for merchants.
Security technologies applied to ensure secure online card payments include EMV tokenisation and strong 3D-Secure (MCSC, VbV, SafeKey) combined with one-time tokens. For card-less payment services, the security technologies applied include userID/password combined with one-time tokens and online banking access with one-time TAN.
The card processors in Azerbaijan and UniCredit (I) claim to be leading PSPs in Azerbaijan. Launched in December 2008, GoldenPay claims to be the first and largest online payment service provider in the country as of mid-2024, with 300 banking clients and more than 70 non-bank clients. In July 2024, GoldenPay received a perpetual electronic money institution license from the Central Bank of Azerbaijan, solidifying its regulatory footing and enabling expansion across banking and non-banking segments.
Acquiring and Acceptance
In Europe, most acquirers offer multi-channel card acceptance and value-added merchant services at POS terminals, MPOS terminals and online shops. The leading acquirers usually offer their services cross-border.
In addition, innovative acquirers also offer the acceptance of card-less payment services based on partner agreements with the issuer of those payment services (e.g. account-based payments, wallets, prepaid products).
Most acquirers either operate their own acquirer systems and ATM/POS/MPOS network service hubs, or they use the processing services of external processors. In order to service online merchants in Europe, they might operate their own PSP processing platforms, or they co-operate with one or more specialised online payment service processors (PSPs).
From 2012, Eurasian acquirers compete in their home markets, cross-border in the CIS region, cross-channel at POS terminals and servicing online merchants. From 2016, innovative acquirers started to offer omni-channel and multi-payment acceptance.
By mid-2025, omni-channel acceptance includes the ability to service all channels (i.e. POS/MPOS terminals, mobile in-store, online shops, in-app), and to accept multiple payments means in all of these channels. Multi-payment services demanded by merchants include cards, online bank payments, online wallets, digital wallets, and prepaid products.
Outlook – By mid-2025, Azeri acquirers face the following notable challenges:
- The enactment of the Payment Services and Payment Systems Law in July 2023
- Rollout of contactless POS/MPOS terminals; Interchange++
- Complete acquirer service portfolio beyond cards, i.e. acceptance of card-less payment services
- Omni-channel payment acceptance: POS/MPOS, online, mobile in-app, mobile in-store
- Cross-border competition, omni-channel competition, finding PSP partners and PISP partners
- New security standards: e.g. 3D-Secure 2.3, tokenisation security, Strong Customer Authentication
Recent developments indicate that Azerbaijan is actively reforming and modernising its payment landscape:
- A new Law on Payment Services and Payment Systems was enacted in July 2023 and signed into law in August 2023, aiming to enhance the efficiency, security, and regulation of payment services. It emphasizes licensing of payment institutions, AML/CFT compliance, data security, and operational standards. However, it currently does not explicitly regulate digital currencies or Central Bank Digital Currencies (CBDCs), although it provides the legal foundation for future financial innovations.
- The CBA is preparing amendments to further improve the regulatory framework, including provisions for fintech, open banking, and cross-border payment systems, to support the rapid expansion of digital payment solutions and fintech services. These reforms are expected to increase competition, improve security standards, and facilitate innovation in the payment ecosystem.
- Latest legislative efforts focus on strengthening penalty regimes for non-compliance with regulatory standards, improving legal enforcement in the rapidly evolving payments and fintech sectors. The amendments aim to ensure better compliance and risk management across the financial sector.
- We forecast continued growth in cashless transaction volume, with a focus on enhancing online, mobile, and cross-border payment pathways, driven by regulatory reforms and technological upgrades.
In summary, Azerbaijan is undergoing significant regulatory and technological reforms to support innovative, secure, and efficient payment services, with a clear trajectory toward accommodating digital currencies in the future. The legal and regulatory environment is evolving to support these innovations while maintaining compliance and security standards.
International Bank of Azerbaijan, Kapital Bank and Xalq Bank are the leading acquirers in Azerbaijan. Others include PASHA Bank, DemirBank, Bank of Baku, and YapKredi Bank (TR). They all acquire Mastercard and VISA brands. IBA was the exclusive American Express acquirer and, from 2016, the exclusive JCB acquirer. UnionPay transactions are acquired by AtaBank, IBA, MilliKart and Azericard as of mid-2025. Table 10 illustrates the card brands accepted by the Azerbaijani acquirers as of mid-2025.
| 10 - Leading Acquirers in Azerbaijan | ||
|---|---|---|
| Domestic Acquirers | Acceptance Brands offered | Owned by |
| International Bank of Azerbaijan (IBA) | Mastercard, VISA, American Express, Diners, JCB, UnionPay; Debit Mastercard, Electron | state: 96.37%; others: 3.63% |
| XALQ Bank | Mastercard, VISA; Electron | Ideal Business-Ko: 50%, EuroStandard:33.85%, Amal Invest: 16.15% |
| Kapital Bank | Mastercard, VISA; Electron | Eldar Garibov: 87.03%, Others: 12.97% |
| PASHA Bank | Mastercard, VISA; Electron | Pasha Group (AZ): 57%, Bless (AZ): 28%, investor (AZ): 15% |
| Bank of Baku | Mastercard, VISA; Electron | NAB Holding: 35%, Private Investors: 28.89%, Individual Investors: 36.11% |
| YapKredi Bank Azerbaijan | Mastercard, VISA; Electron | YKB: 99.8%, Others: 0.2% |
| other acquirer banks | Mastercard, VISA; Electron; UnionPay | Private investors |
| Source: PCM research | ||
ATM Terminal Infrastructure
ATMs are owned by individual banks and form an interoperable national network through AzeriCard. Fees of 1% are typically charged for ‘on-us’ withdrawals and 1.5% for withdrawals at other banks’ ATMs. In respect of interbank obligations arising from ATM transactions, banks receive details of their bilateral clearing positions from AzeriCard each day, and obligations must be settled bilaterally via CBA within two days.
Accepted card brands at most Azerbaijani ATMs are debit cards (Debit Mastercard, Maestro, VISA Debit and Electron) and credit cards (Mastercard, VISA, American Express, Diners, Discover, and JCB). Accepted card brands at ATMs also include Cirrus, Plus, and Pulse. UnionPay cards can be used to withdraw Manat from some ATMs of IBA and MilliKart. The EMV migration of ATM terminals continued.
Based on Azerbaijan’s population of 10.18 million, ATM terminal density is at relatively low levels, and the ATM estate has grown by just 4.53% since 2019. Some 53.6% of ATMs are located in Baku, the capital.
Central Bank of Azerbaijan reported 3,304 ATMs at the end-2024, up by 6.17% from 2023. In 2024, there were 177.33 million cash withdrawals on cards (+9.19% Vs 2023) with a total value of AZN 41.84 billion (+12.44% Vs 2023). The ATV per cash withdrawal accounted for an average of AZB 235.94 (+2.97% Vs 2023), and there were 4,472.7 cash withdrawals on cards per ATM per month over the last year.
| 11 - ATMs in Azerbaijan | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| ATMs with cash function | 2,715 | 2,907 | 3,068 | 3,112 | 3,304 | 6.17% | 4.53% |
| - in Baku | 1,429 | 1,560 | 1,591 | 1,621 | 1,772 | 9.32% | 4.51% |
| - regional | 1,286 | 1,347 | 1,477 | 1,491 | 1,532 | 2.75% | 4.56% |
| Market share of ATMs in Baku | 52.6% | 53.7% | 51.9% | 52.1% | 53.6% | 2.96% | -0.02% |
| Ø Number of TXs per ATM per month | 2,585.6 | 2,850.5 | 3,472.3 | 4,348.9 | 4,472.7 | 2.85% | 13.38% |
| Number of ATM cash withdrawals (000s) | 84,240 | 99,436 | 127,837 | 162,404 | 177,335 | 9.19% | 18.52% |
| Value of ATM cash withdrawals (AZN m) | 20,156 | 23,333 | 30,276 | 37,212 | 41,840 | 12.44% | 20.57% |
| ATV per cash withdrawal (AZN) | 239.27 | 234.65 | 236.83 | 229.13 | 235.94 | 2.97% | 1.73% |
| # ATM Terminals per 1m capita - Azerbaijan | 272.2 | 289.9 | 304.9 | 307.3 | 324.5 | 5.61% | 4.30% |
| # ATM Terminals per 1m capita - EA10 total | 713.6 | 698.7 | 684.4 | 714.2 | 714.2 | 0.00% | -0.41% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
In December 2020, a joint network of ATMs was launched, using the capabilities of the Interbank Card Centre, operated by the CBA, with the aim of expanding financial inclusion. The local banks (AccessBank and Yapi Kredi Bank Azerbaijan, AFB Bank, Azer-Turk Bank, Bank of Baku, Expressbank, Gunay Bank, TuranBank, Unibank, Yelo Bank and Ziraat Bank Azerbaijan) and Azerpocht signed an agreement on the joint use of existing ATM networks.
As a result, customers of these banks will be able to use the joint ATM network of 500 ATMs. The shared network will help to optimise the costs of banks for the network of ATMs with the purpose of providing customers with more affordable financial services.
In 2021, it was made possible to receive pensions and social benefits from ATMs of any bank without paying additional service fees.
POS Terminal Infrastructure
Growth of the Azerbaijani POS acceptance network has been stimulated by official plans for all retailers with monthly sales of more than $1,000 to install EFTPOS terminals.
Accepted card brands at most Azerbaijani POS terminals are debit cards (Debit Mastercard, Maestro, VISA Debit and Electron), and credit cards (Mastercard, VISA, American Express, Diners, Discover, and JCB). UnionPay cards can be accepted at some POS terminals under IBA and Millikart, in Baku and a few other major tourist cities. The EMV migration of POS terminals continued.
Central Bank of Azerbaijan reported 119,540 POS terminals, up by 38.38% from 2023. Over 61.1% of the national POS estates are located in Baku, the capital. The impact of the COVID-19 pandemic can be seen in the rapid rise of POS payments and value. In 2024, there were 622.25 million POS payments in Azerbaijan with domestic and foreign cards (+49.25% Vs 2023) with a total value AZN 14,455.00 billion (+23.82% Vs 2023) giving 433.8 POS payments per POS terminal per month on average (+7.86% Vs 2023). The ATV per POS payment on cards accounted for an average of AZN 23.23, down by 17.04% from 2023.
The CBA reported that one in three contactless POS-terminal payments was made using smart devices in 2024.
| 12 - POS Terminals in Azerbaijan | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| POS terminals | 57,120 | 60,936 | 79,820 | 86,383 | 119,540 | 38.38% | 12.12% |
| - in Baku | 37,627 | 40,549 | 53,820 | 57,054 | 73,042 | 28.02% | 12.30% |
| - regional | 19,493 | 20,387 | 26,000 | 29,329 | 46,498 | 58.54% | 11.84% |
| Market share of POS terminals in Baku | 65.9% | 66.5% | 67.4% | 66.0% | 61.1% | -7.49% | 0.16% |
| Ø Number of TXs per POS terminal per month | 70.6 | 143.7 | 207.9 | 402.2 | 433.8 | 7.86% | 68.88% |
| Number of POS payments (000s) | 48,420 | 105,088 | 199,160 | 416,907 | 622,251 | 49.25% | 89.35% |
| Value of POS payments (AZN m) | 3,619 | 5,001 | 7,327 | 11,674 | 14,455 | 23.82% | 44.56% |
| ATV per POS payment (AZN) | 74.74 | 47.59 | 36.79 | 28.00 | 23.23 | -17.04% | -23.66% |
| # POS Terminals per 1m capita - Azerbaijan | 5,726.9 | 6,077.7 | 7,932.0 | 8,529.9 | 11,741.7 | 37.65% | 11.87% |
| # POS Terminals per 1m capita - EA10 total | 17,950.0 | 19,042.0 | 21,326.6 | 23,470.2 | 23,470.2 | 0.00% | 9.31% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
MPOS Terminals – Small and mobile merchants have started to use their smartphones and tablet PCs as a mini-POS+ECR device with added chip reader dongle. Also, merchants can initiate MOTO-like card payments on smartphones and tablets by downloading a payment app.
In December 2012, Square clones like iZettle, SumUp and others have launched their services in Europe and also are expected to support Azerbaijani merchants in the future.
In September 2014, MilliKart launched a new mobile payment app solution, M+, paired with a Chip & PIN card reader. According to MilliKart, M+ is a highly scalable MPOS terminal solution for small merchants as well as large merchants who might have many thousands of agents on the ground.
As of 2022, digital payment infrastructure development and CBA initiatives enabled the possibility of using smartphones as POS terminals and the corresponding legislative framework was formed. This step will have a positive impact on expanding the infrastructure and improving the usability and formation of a network of POS terminals. The legislative framework supporting this advancement was established through amendments approved by the Cabinet of Ministers on May 18, 2022. These changes simplified the installation and use of POS terminals, including mobile devices equipped with the necessary software for cashless payments.
By 2023, the adoption of mobile POS solutions had expanded, with multiple banks in Azerbaijan integrating the tapXphone service. Notably, Yelo Bank launched this service in April 2023, following earlier implementations by Kapital Bank, Rabitabank, ABB Bank, and Bank Respublika. This widespread adoption underscores the positive impact of the CBA’s initiatives on expanding the POS terminal network and enhancing the usability of digital payment systems in Azerbaijan. In July 2024, PASHA Bank adopted tapXphone to enable the bank’s business clients to accept payments easily and quickly while adhering to the latest security requirements.
Remote Internet Payments – Cards & More
Azerbaijan specialised online stores began to appear in the early 2000s. However, Azerbaijan occupies one of the worst positions in development of retail e-commerce among the CIS countries, which is clearly seen in the comparative analysis of the volume of e-commerce in Azerbaijan with Belarus, Kazakhstan, Ukraine and Russia.
As of 2024-2025, Azerbaijan’s e-commerce market is valued at around $1.9 billion with forecasted compounded annual growth rates (CAGR) of approximately 5.9% through 2030, indicating steady expansion though from a low starting base.
Retail e-commerce transactions and sales are growing rapidly, with Azerbaijan experiencing a notable surge in online retail turnover—in the first seven months of 2025, retail e-commerce turnover hit $78.2 million, marking nearly 67% growth year-on-year.
The majority of online stores in Azerbaijan operate on platforms like WooCommerce, Shopify, and Custom Cart, with Home & Garden and Apparel leading store categories.
Despite growth, Azerbaijan faces challenges typical for emerging markets: a relatively low penetration of online retail compared to advanced economies, infrastructural limitations, consumer trust and digital literacy issues, and limited scale of domestic logistics and payment ecosystems.
Thus, Azerbaijan is showing strong growth potential in retail e-commerce but remains behind some regional peers in scale and maturity.
Internet Use – According the International Telecommunication Union (ITU), Azerbaijan is the leader in the CIS and the number of individual Internet users and the level of broadband internet penetration among individual users.
In 2024, 90.8% of Azerbaijanis have used the internet, according to the State Statistical Committee, and some purchased in online shops in the 12-month period. Online buyers use their PCs, notebooks, tablets, or smartphones. Thus, remote payments are initiated from various types of internet capable devices.
E-commerce has been rapidly developing during the last few years. According to the Center for Analysis of Economic Reforms and Communication (CAERC), e-commerce spending’s share in retail trade is just 4.6%. At the current level of internet penetration, the share of e-commerce in retail is expected to reach 7% over the next few years.
Cards on the Internet (CNP) – All cards with international brands are accepted in Azerbaijani online shops after the merchant has signed an acceptance contract. Azerbaijani banks have started to issue prepaid cards and virtual cards for internet use only.
Leading online shops in Azerbaijan offer remote payments on cards based on security standards like SSL with CVC2/CVV2 code and 3D-Secure (Mastercard SecureCode, Verified-by-VISA). Further, web-based MOTO services are offered to Azerbaijani merchants by their acquirers. Cross-border e-commerce is still developing. The vast majority of items bought from foreign websites consist of mobile phones and computer parts. According to The State Customs Committee, the government is currently working on ensuring effective legal e-commerce regulation, preparing new bills.
The e-Payment Mix in Azerbaijan – In 2025, remote payment means offered by the merchants in online shops were dominated by cards followed by online bank transfers and card-on-delivery. The government and banks are promoting mobile payment services alongside virtual cards and e-wallet solutions such as PayPal and Azerpay for making e-commerce purchases.
E-commerce has grown rapidly over the past three years, and at a much quicker rate following the COVID-19 pandemic, with the CBA reporting 1.03 billion e-commerce payments in 2024 (+83.40% from 2023) and a total value of AZN 66.51 billion, up 69.83% from 2023. Most e-commerce transactions are conducted with debit cards, although credit card volumes are gradually increasing.
| 13 - E-Commerce Payments in Azerbaijan | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Number of e-commerce payments (000s) | 69,286 | 109,458 | 260,550 | 563,442 | 1,033,367 | 83.40% | 87.58% |
| - on debit cards (000s) | 57,658 | 95,195 | 232,310 | 516,132 | 964,617 | 86.89% | 90.51% |
| - on credit cards (000s) | 11,628 | 14,263 | 28,240 | 47,310 | 68,749 | 45.32% | 62.53% |
| Value of e-commerce payments (AZN m) | 3,873 | 7,210 | 18,349 | 39,167 | 66,515 | 69.83% | 85.15% |
| - on debit cards (AZN m) | 3,404 | 6,630 | 16,860 | 36,460 | 61,651 | 69.09% | 87.60% |
| - on credit cards (AZN m) | 469 | 580 | 1,489 | 2,707 | 4,864 | 79.70% | 64.49% |
| ATV per e-commerce payment (AZN) | 55.90 | 65.87 | 70.42 | 69.51 | 64.37 | -7.40% | -1.29% |
| Total e-commerce payment per capita | 6.95 | 10.92 | 25.89 | 55.64 | 101.50 | 82.44% | 87.16% |
| Total e-commerce payments value (AZN) per capita | 388.31 | 719.12 | 1,823.41 | 3,867.54 | 6,533.42 | 68.93% | 84.74% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Remote Payments on the Mobile Internet – Since 2013, online buyers have started to use their smartphones for shopping on the mobile internet. Mobile online shops can be accessed by mobile internet, by mobile app, or by scanning a 2D QR-code displayed, for example, in a newspaper or at a bus station. Thus, remote mobile payments are executed by either using the e-payment page of the mobile shop or by using payment apps of a PSP or an acquirer.
Also, Azerbaijani merchants can download a payment app from their acquirer in order to initiate MOTO payments with cards and/or online direct debits. Leading Azeri merchants are believed to consider their own apps including loyalty functions (e.g. e-vouchers, discounts, outlet finder, QR-code scanning) in the future.
Mobile Payments – Overview
In 2024, 110% of Azerbaijanis have subscribed to a mobile phone, and 81.9% of the population use a smartphone. Tablet penetration is growing from a low level, and 64.6% of households are estimated to have an internet-capable mobile device.
The Azerbaijani m-Payment Mix – There are no official m-payment mix statistics, but bank information indicates that the domestic m-payment mix is similar to the e-payment mix (see Remote Payments on the Internet section).
Mobile Payment Initiatives
In 2025, the various European mobile payment initiatives can be grouped into:
- Non-bank players like FinTechs, payment initiation service provider (PISPs), and account information service providers (AISPs) launching digital payment services beyond cards
- Innovative banks which launch mobile banking apps allowing for card-less in-app payments and payments on the internet
- Leading banks which pilot mobile HCE NFC payments with the card credentials stored-on-file in the cloud (HCE)
- Banks partnering with mobile network operators in order to offer mobile SIM SE NFC payments on cards with the card credentials stored in a secure element on SIM card of the mobile device
- Innovative retailers which offer their own apps with loyalty and payment functions to their consumers
As of early 2025, there are 12.2 million active mobile connections in Azerbaijan, which is about 118% of the population. Around 96.5% of these connections are broadband, offering 3G, 4G, or 5G access. Internet penetration is high at 89%, with 64.9% of the population actively using social media. This connectivity underpins rapid digital payment adoption.
By the end of 2025, it is estimated that around 3.85 million Azerbaijanis (approximately one-third of the population) will regularly use digital payments, driven by government initiatives and fintech innovations. The Instant Payment System (IPS) introduced in 2020 plays a key role, connecting more than 19 banks, the national treasury, and Azerpost postal service, enabling QR code payments, NFC transactions, and payments to over 900 government and public institutions.
Azerbaijan’s financial ecosystem features 12 licensed mobile wallet providers (e.g., GoldenPay, PashaPay, United Payment) alongside international wallets like Apple Pay and Google Pay. These wallets support a growing number of contactless and in-app payments, reinforcing digital payment convenience.
The infrastructure has been enhanced by real-time gross settlement (RTGS) through AZIPS and the low-value payments system HÖP, facilitating rapid, secure money movements essential for mobile payments and digital banking growth.
Mobile payments are integrated with wider digital and smart city initiatives, such as contactless transit ticketing with QR and NFC technologies for buses, metros, taxis, and shared mobility services in cities like Baku and Sumgait, highlighting practical use cases broadening mobile payment adoption in daily life.
Banks and PSPs continue to develop mobile apps consolidating services with open banking aspects, exemplified by AzeriCard’s ongoing mobile app development collaboration with Visa, aiming for seamless multi-bank service integration.
The population’s median age of about 33.6 years supports strong digital adoption trends and growth in mobile payments, boosted by rising smartphone penetration and increasing digital literacy.
In 2020, Azercell Telecom launched a mobile payment service in partnership with PASHA Bank and the Data Processing Centre of Ministry of Transport, Communications and High Technologies of the Republic of Azerbaijan. The new service will allow subscribers to use their mobile phones for payments, including utility bills.
A notable mobile payment development came in October 2020 with the launch of the Instant Payment System, incorporating mobile functionality through the AniPay mobile payment service. The AniPay portal launched on the Instant Payment System has been made available for users as a mobile app and website. Transfers can be made using mobile phone numbers and mobile banking services of participating banks. The IPS enables QR code and NFC payments, along with payments for about 900 services provided by institutions integrated into the Government Payment Portal, such as taxes, duties, rent and other budget payments, as well as payments for utilities, communications, and other public services.
AzeriCard – In January 2021, AzeriCard began developing a new mobile app for bank clients, which will combine the services of all banks served by AzeriCard and will simplify the use of all banking services for clients. At the initial stage, the app will integrate the services of banks that are most ready for the conditions of open banking. The project is being implemented jointly with VISA.
Central Bank Digital Currencies (CDBC) – The Digital Cash Challenge
Central bank digital currency (CBDC), also called digital fiat currency or digital base money, is a digital currency issued by a national central bank (NCB), rather than by a commercial bank. It is also a liability of the NCB and denominated in the sovereign currency, as is the case with physical banknotes and coins.
All CBDCs are under the authority of the respective national central bank, and they are part of the domestic cash payment ecosystem. Rather than a new currency, CBDC is a form of central bank electronic money that could be used by households and businesses to make payments. In addition, most CBDC implementations will likely not use or need any sort of distributed ledger such as a blockchain.
Unlike “retail CBDC,” which is generally designed as a central bank liability universally accessible to individuals and businesses within a jurisdiction’s financial system, “wholesale CBDC” refers to a digitized central bank liability designed for sizable (generally interbank) transactions, and for which access is limited to certain financial institutions.
National Central Banks (NCBs) have been providing trusted money to the public for hundreds of years as part of their public policy objectives. Trusted money is a public good. It offers a common unit of account, store of value and medium of exchange for the sale of goods and services and settlement of financial transactions. Providing cash for public use is an important tool for central banks. Yet the world is changing.
Even before COVID-19, cash use for payments was declining fast and convenient digital payments have grown enormously in volume and diversity. To evolve and pursue their public policy objectives in a digital world, central banks are actively researching the pros and cons of offering a digital currency to the public, a “general purpose” CBDC.
Central banks’ interest in CBDC has increased as a potential means of delivering their public policy objectives. Profound, ongoing changes across finance, technology, and society, as well as the recent COVID-19 crisis, provided additional impetus for the research of, and experimentation related to, CBDCs.
CBDC is a national digital currency issued by the central bank that is expected to replace or coexist with fiat money and hold the same value. Mobile money, on the other hand, utilises existing commercial banking-based accounting to manage customer wallet balances based on an exchange with cash or lines of credit and loans.
CBDC is a direct liability on the central bank as it is the main issuer of the currency, whereas digital money is the liability of commercial banks and other authorised financial institutions using funds on account. Although some implementation approaches propose that CBDC can be implemented in either an indirect or hybrid form, its liability remains on the respective national central bank.
National CBDC Initiatives
In October 2020, the CBA jointly with IBM created a digital identification system (DIS), with the aim of increasing financial accessibility in the country. The Hyperledger Fabric blockchain platform was introduced, which provides full protection of the confidentiality of information in a database based on distributed ledger technology. Legal entities and individuals will be able to open bank accounts and receive payment cards in a pilot mode with their identification following the client recognition policy for remote receipt of financial and banking services by legal entities and individuals.
Efforts to expand the coverage of the DIS to increase access to e-banking services continued in 2021. The DIS platform uses face recognition, aided by integration to domestic and international markets. The DIS allows remote bank account opening for e-residents without coming to the country. As of 2021, 20 banks were integrated to the DIS platform. Since the date of commissioning, the system has opened 1,600 remote bank accounts for legal entities and individuals, and users obtained over 280 payment cards.
Cryptocurrency remains in a legal gray area in Azerbaijan. It is neither banned nor fully regulated, and no specific cryptocurrency laws have been enacted. Trading, mining, and holding crypto are not prohibited, but the Azerbaijani manat remains the only legal tender. Financial authorities have issued warnings about volatility and risks, requiring compliance with AML/KYC rules for crypto-related activities to combat financial crime.
Income and gains from cryptocurrency trading or mining are taxed under the Azerbaijani Tax Code as property or income, with individuals taxed at 14% on crypto earnings and companies at 20%. VAT does not apply directly to cryptocurrencies but applies to goods and services sold for crypto. There is no licensing system yet for exchanges or wallet providers, and most residents use international platforms.
The government continues evaluating blockchain applications and potential regulations to provide a clearer framework, with interest in international standards, investor protection, and AML compliance.
Cryptocurrency mining is legal and regulated with energy usage guidelines and tax obligations. The development of tech hubs like Baku Tech Park supports blockchain innovation and mining operations.
Azerbaijan ranks 34th globally in crypto adoption as of 2025, with growing transaction volumes and market participation despite regulatory uncertainties.
Unregulated Cryptocurrency Products – Background
Regulators and national central banks are challenged by unregulated independent cryptocurrency products. Whereas CBDCs are under the authority of the central bank, almost all cryptocurrencies are decentralised, and not controlled or managed by any central authority.
Obviously, financial market authorities and the national central banks are not in favour of unregulated cryptocurrency products, and they see them as a systematic risk for the financial system. Their intention to regulate the respective cryptocurrency exchange platforms has gained momentum.
Cryptocurrencies, originally designed as a store of value, are digital assets, developed and maintained on decentralised blockchains, and they can be used as a medium of exchange or payment method. Bitcoin and Ethereum are the most popular forms of cryptocurrencies worldwide used by consumers and businesses for transactions.
As of 2022, over 400 million people worldwide used cryptocurrencies, with merchants and businesses in more sectors accepting it as a form of payment. The major payment schemes VISA and Mastercard, PayPal and along with a growing number of financial institutions, have launched services allowing consumers to purchase or use cryptocurrencies for a range of applications.
According to a 2022 Deloitte survey, around two-thirds (64%) of surveyed merchants indicated that their customers have significant interest in using digital currencies for payments, and 83% expect consumer interest in digital currencies for payments to increase or significantly increase over the next 12 months.
In addition, merchants are motivated by the prospect of enabling immediate access to funds (40% of respondents), taking advantage of blockchain-based innovations in decentralised digital finance (39%), and allowing in-house management of the revenue cycle/treasury/finance department (39%).
Over half (54%) of large retailers (with revenues of $500 million and up) have invested more than $1 million on enabling digital currency payments, while only 6% of small retailers (with revenues of under $10 million) did so.
A 2022 survey from Checkout.com found a sharp rise in people wanting to use cryptocurrencies as a means of payment, with 40% of 18-35-year-old consumers citing their desire to experiment with using crypto as a payment method, up from less than 30% in 2021. Meanwhile, over 80% of businesses say offering crypto has attracted new customers, leading to a decrease in chargebacks, while just over 60% have seen higher authorisation rates accepting crypto payments.
A recent report by Triple-A for 2024–2025 reports estimate cryptocurrency ownership in Europe has climbed to approximately 50 million people, up from around 30 million in 2023. Crypto adoption in Europe grew to 8.9% of the adult population in 2025, driven by greater institutional access, major regulatory changes (like MiCA), and clearer frameworks for exchanges and wallet providers. This keeps Europe’s ownership rate ahead of previous years, though still trailing regions like Asia and the Americas in terms of total share and growth rate.
Market Size and Dynamics
Cards in Issue
Based on CBA figures, there were 19.90 million cards in Azerbaijan by end-2024, equivalent to 1.96 cards per capita. Total cards issued grew by 17.57% from 2023. There were 17.64 million debit cards and 2.25 million credit cards. Debit cards account for 88.66% of the total card base, and credit cards for the balance.
The decline in the total cards in 2015 and 2016 was an impact of the bank sector consolidation.
| 14 - Cards in Azerbaijan | |||||||
|---|---|---|---|---|---|---|---|
| (000s) | 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y |
| Cards with a cash function | 9,230 | 11,040 | 13,257 | 16,925 | 19,899 | 17.57% | 22.32% |
| Cards with a payment function | 9,230 | 11,040 | 13,257 | 16,925 | 19,899 | 17.57% | 22.32% |
| - thereof debit cards | 8,137 | 9,645 | 11,434 | 14,709 | 17,642 | 19.94% | 22.22% |
| - debit (social) | 3,443 | 3,469 | 3,500 | 3,655 | 3,381 | -7.49% | 7.25% |
| - debit (salary) | 2,501 | 2,591 | 2,735 | 2,881 | 2,897 | 0.55% | 4.58% |
| - debit (other) | 2,193 | 3,585 | 5,199 | 8,173 | 11,364 | 39.04% | 45.06% |
| - thereof credit cards | 1,093 | 1,395 | 1,823 | 2,216 | 2,256 | 1.82% | 23.14% |
| Total cards issued | 9,230 | 11,040 | 13,257 | 16,925 | 19,899 | 17.57% | 22.32% |
| Payment cards per capita - Azerbaijan | 0.92 | 1.11 | 1.32 | 1.68 | 1.96 | 16.83% | 21.97% |
| Payment cards per capita - EA10 total | 1.65 | 1.82 | 2.09 | 2.42 | 2.42 | 0.00% | 9.97% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Card Fraud
Card fraud is one of the most fascinating aspects of the payments industry, not least because it is relentless and mutating. EMV implementation and 3D-Secure, combined with Strong Customer Authentication (SCA), have done much to reduce domestic losses from lost and stolen cards in Europe. However, the war against fraud losses and the changing face of fraud continues to be a threat for the payments industry, including Azerbaijan.
The global card fraud challenges are Card-Not-Present fraud (CNP), cross-border fraud and counterfeiting on non-EMV cards. CNP fraud accounted for 80% of the total value of card fraud losses in 2022. From 2017, a new payment fraud category are fraud losses on contactless card payments. International card fraud continues to be smaller in scale than domestic card abuse but is proportionately far more common. And of course, fraudulent cross-border transactions on cards continue to grow on all purchase channels.
Losses from card fraud on the internet and cross-border fraud on domestic cards have grown significantly. Following EMV implementation, card fraud has moved increasingly to countries where POS terminals or online shops have not yet been migrated to EMV and SCA, respectively, and to cross-border fraud with compromised cards.
The breakdown of card fraud losses by method of compromise already indicates the importance of distinguishing between domestic and cross-border fraud losses. The method of compromise covers the means by which fraudsters obtain payment cards or card details. Notable methods of compromise in a complex payment world are CNP fraud based on theft of card credentials and card lost and stolen fraud followed by growing ID fraud and by cross-counterfeit fraud.
The main method of compromise responsible for losses in many European countries is now the theft of card credentials. A high proportion of these card fraud losses are caused by the growth in e-commerce, and still the lack of use of Strong Customer Authentication methods such as 3D-Secure.
In a post data-breach world, identity information, payment credentials, account credentials and responses to security questions are widely available for purchase in bulk. Complete fraud exploits and zero-day attacks are also easily available on the black market for outright purchase or as a hosted / fully managed service.
In the digital payments world and having the changing face of fraud in mind, there are significant challenges for card issuing banks, payment service providers and their supporting processors.
According to the CBA, in 2017, the card fraud losses in Azerbaijan were not significant. In 2017, there were a total 9,700 fraudulent payment card transactions (-26.5% from 2014) worth of AZN 1.2 million (-5% from 2014) were conducted in 2015. In 2015, the card fraud ratio accounted for 0.0145% by transaction number and for 0.0106% by transactions value. For 2018, the CBA provided an update to the effect that the number of fraudulent transactions had declined from 0.013% in 2017 to 0.019% in 2018; by value, fraud declined from 0.009% of all card transactions to 0.008%. The CBA did not provide an update for 2022 and 2023.
As most POS card transactions are authorised online-to-issuer, acquirer fraud rates in Azerbaijan are under control except for offline vending machines, e-commerce, and other hotspots.
Credit card fraud prevention measures taken have been pushing 3D-Secure, updating bank fraud prevention systems and real-time-scoring, implementing more rule-based fraud control mechanisms. Also, issuers offer PIN selection at ATMs and SMS notification to inform cardholders about the use of their credit card.
Card Use
With the accelerated roll-out of POS terminals, the rate of growth of payments on cards has picked up substantially. According to CBA data, ATM withdrawals outnumbered POS transactions by a ratio of over 25.6:1 in 2011, but in 2024, the ratio was 0.3:1 as POS payments outpaced ATM withdrawals.
Card payments in Azerbaijan showed a compound annual growth rate of 89.35% in the last five years. In 2024, there were 622.25 million payments on Azerbaijani cards (+49.25% from 2023) with a total value of AZN 14.45 billion (+23.82% from 2023) giving a high 31.3 payments per card per year (2023: 24.6). The ATV per card payment amounted to AZN 23.23, down by 17.04% from 2023.
The continued decline of card payments from 2013 to 2016 is believed to be an impact of the bank sector consolidation during that time. However, the growth of the total payments value implies more use of cards for household goods and consumer durables.
| 15 - Payments with Azerbaijani Cards | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Cards with a payment function (000s) | 9,230.0 | 11,040.0 | 13,257.0 | 16,925.0 | 19,899.0 | 17.57% | 22.32% |
| Ø payments per card per year | 5.2 | 9.5 | 15.0 | 24.6 | 31.3 | 26.95% | 54.80% |
| Ø payment value (AZN) per card per year | 392.3 | 453.2 | 559.0 | 689.7 | 726.4 | 5.31% | 18.17% |
| Number of payments (000s) | 48,424.0 | 105,091.0 | 199,160.0 | 416,907.0 | 622,250.6 | 49.25% | 89.35% |
| - on debit cards (000s) | 34,635.0 | 80,671.0 | 157,270.0 | 358,956.0 | 549,974.9 | 53.22% | 97.23% |
| - on credit cards (000s) | 13,789.0 | 24,420.0 | 41,890.0 | 57,951.0 | 72,275.7 | 24.72% | 58.90% |
| Value of payments (AZN m) | 3,621.0 | 5,003.0 | 7,411.0 | 11,674.0 | 14,454.3 | 23.82% | 44.55% |
| - on debit cards (AZN m) | 2,930.0 | 3,925.0 | 5,803.0 | 9,700.0 | 12,316.0 | 26.97% | 45.56% |
| - on credit cards (AZN m) | 691.0 | 1,078.0 | 1,608.0 | 1,974.0 | 2,138.3 | 8.33% | 39.48% |
| ATV per card payment (AZN) | 74.78 | 47.61 | 37.21 | 28.00 | 23.23 | -17.04% | -23.66% |
| Total card payments per capita | 4.9 | 10.5 | 19.8 | 41.2 | 61.1 | 48.47% | 88.93% |
| Total card payments value (AZN) per capita | 363.0 | 499.0 | 736.5 | 1,152.7 | 1,419.8 | 23.16% | 44.23% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Predefined contactless limits – Contactless payments of purchase amounts below a predefined contactless limit are without PIN or signature and without transaction receipt. In Azerbaijan, the contactless limit for low value payments without PIN/signature is set to be AZN 50 for cards with PayPass or payWave function. In response to the COVID-19 pandemic, the contactless limit was raised to AZN 100 in August 2020 to promote encourage more non-cash transactions.
Cash withdrawals in Azerbaijan showed a compound annual growth rate of 21.43% in the last five years. In 2024, there were 177.33 million cash withdrawals on Azerbaijani cards (+9.25% Vs 2023) with a total value of AZN 41.84 billion (+12.43 Vs 2023) giving 8.91 cash withdrawals per card per year. The ATV per cash withdrawal accounted for AZN 235.93, up by 2.92% compared to 2023.
| 16 - Cash Withdrawals with Azerbaijani Cards | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Cards with a cash function (000s) | 9,230.0 | 11,040.0 | 13,257.0 | 16,925.0 | 19,898.7 | 17.57% | 25.04% |
| Ø cash withdrawals per card per year | 9.1 | 9.0 | 9.643 | 9.591 | 8.912 | -7.08% | -2.89% |
| Ø withdrawals value (AZN) per card per year | 2,183.9 | 2,113.4 | 2,283.8 | 2,198.6 | 2,102.6 | -4.37% | 0.76% |
| Number of cash withdrawals (000s) | 84,239.0 | 99,436.0 | 127,838.0 | 162,324.0 | 177,335.0 | 9.25% | 21.43% |
| - on debit cards (000s) | 81,422.0 | 95,988.0 | 122,579.0 | 156,277.0 | 171,451.0 | 9.71% | 22.10% |
| - on credit cards (000s) | 2,817.0 | 3,448.0 | 5,259.0 | 6,047.0 | 5,884.0 | -2.70% | 8.07% |
| Value of cash withdrawals (AZN m) | 20,157.0 | 23,332.0 | 30,276.0 | 37,212.0 | 41,839.0 | 12.43% | 25.99% |
| - on debit cards (AZN m) | 19,682.0 | 22,772.0 | 29,317.0 | 35,963.0 | 40,399.0 | 12.33% | 26.58% |
| - on credit cards (AZN m) | 475.0 | 560.0 | 959.0 | 1,249.0 | 1,440.0 | 15.29% | 13.94% |
| ATV per cash withdrawal (AZN) | 239.28 | 234.64 | 236.83 | 229.25 | 235.93 | 2.92% | 3.76% |
| Total cash withdrawals per capita | 8.4 | 9.9 | 12.7 | 16.0 | 17.4 | 8.67% | 20.95% |
| Total card withdrawals value (AZN) per capita | 2,021.0 | 2,327.1 | 3,008.6 | 3,674.5 | 4,109.6 | 11.84% | 25.49% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Card Use per Capita
In 2024, there were 61.1 card payments per capita, up by 48.47% compared to 2023. The total card payments value per capita accounted for AZN 1,419.8 up by 23.16% compared to 2023.
In 2024, there were 17.4 cash withdrawals on cards per capita, up by 8.67% from 2023. The total card cash withdrawals value per capita accounted for AZN 4,109.6, up by 11.84% from 2023.
Debit Card Use
Debit cards accounted for 88.66% of the total card base in 2024. Debit card payments in Azerbaijan showed a compound annual growth rate of 97.23% in the last five years. In 2024, there were 54.0 debit card payments per capita. The total debit card payments value per capita accounted for AZN 1,209.8 up by 26.30% from 2023.
In 2024, there were 549.97 million payments on Azerbaijani debit cards (+53.22% from 2023) with a total value AZN 12,316 million (+26.97% Vs 2023) giving 31.2 payments per debit card per year. The ATV per debit card payment amounted to AZN 22.39, down by 17.13% from 2023.
| 17 - Payments with Debit Cards | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Cards with a debit function (000s) | 8,137 | 9,645 | 11,434 | 14,709 | 17,642 | 19.94% | 22.22% |
| Ø payments per debit card per year | 4.3 | 8.4 | 13.8 | 24.4 | 31.2 | 27.74% | 61.36% |
| Ø payment value (AZN) per debit card per year | 360.1 | 406.9 | 507.5 | 659.5 | 698.1 | 5.86% | 19.09% |
| Number of debit card payments (000s) | 34,635 | 80,671 | 157,270 | 358,956 | 549,975 | 53.22% | 97.23% |
| Value of debit card payments (AZN m) | 2,930 | 3,925 | 5,803 | 9,700 | 12,316 | 26.97% | 45.56% |
| ATV per debit card payment (AZN) | 84.60 | 48.65 | 36.90 | 27.02 | 22.39 | -17.13% | -26.20% |
| Total debit card payments per capita | 3.5 | 8.0 | 15.6 | 35.4 | 54.0 | 52.41% | 96.78% |
| Total debit card payments value (AZN) per capita | 293.8 | 391.5 | 576.7 | 957.8 | 1,209.8 | 26.30% | 45.23% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Credit Card Use
Credit cards account for 11.34% of the total card base in 2024. Credit card payments rebounded sharply in 2018, growing by 32.20% to reach 3.87 million. This followed a decline in credit card payments since 2014 amounting to an average of -4.49% over the last five years. The upward trend in credit card payments continued in 2024, due to the increasing availability of payment infrastructure and mobile payment services, along with the impact of COVID-19 pushing up credit card usage on the internet.
In 2024, there were 7.1 credit card payments per capita, up by 24.06% over 2023. The total credit card payments value per capita accounted for AZN 210.0, up by 7.75% over 2023.
In 2024, there were 72.27 million payments on Azerbaijani credit cards (up 24.72% over 2023) with a total value of AZN 2,138 million (up by 8.33% over 2023) giving 32.0 payments per credit card per year. The ATV per credit card payment amounted to AZN 29.59, down by 13.14% from 2023.
The sharp decline of credit card payments from 2014 was believed to be an impact of the bank sector consolidation in combination with a consolidation of credit card products.
| 18 - Payments with Credit Cards | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Cards with a credit function (000s) | 1,093 | 1,395 | 1,823 | 2,216 | 2,256 | 1.82% | 23.14% |
| Ø payments per credit card per year | 12.6 | 17.5 | 23.0 | 26.2 | 32.0 | 22.49% | 29.05% |
| Ø payment value (AZN) per credit card per year | 632.2 | 772.8 | 882.1 | 890.8 | 947.7 | 6.39% | 13.28% |
| Number of credit card payments (000s) | 13,789 | 24,420 | 41,890 | 57,951 | 72,276 | 24.72% | 58.90% |
| Value of credit card payments (AZN m) | 691 | 1,078 | 1,608 | 1,974 | 2,138 | 8.33% | 39.48% |
| ATV per credit card payment (AZN) | 50.11 | 44.14 | 38.39 | 34.06 | 29.59 | -13.14% | -12.22% |
| Total credit card payments per capita | 1.4 | 2.4 | 4.2 | 5.7 | 7.1 | 24.06% | 58.55% |
| Total credit card payments value (AZN) per capita | 69.3 | 107.5 | 159.8 | 194.9 | 210.0 | 7.75% | 39.17% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Leading Card Issuers
International Bank of Azerbaijan (IBA) – As of 2024, IBA reported a card base of 6.16 million active cards which accounted for 31% of the country’s total cards issued according to data provided by the Banking Association of Azerbaijan.
Much of the recent growth has come from the issuance of pensioner cards. IBA claimed more than one million issued pensioner cards in the period from 2003 to 2011, with 700,000 in 2015. In 2013, IBA introduced a new programme, Pension+, for its pensioner cards. Pension+ offers cardholders an interest- and commission-free credit line of AZN 100 for use with merchants like supermarkets and drug stores which have contracted with IBA. Pension+ credits may not be encashed at ATMs.
IBA has the broadest range of card services in Azerbaijan, including TamKart, VISA Electron, Cirrus Maestro and a suite of VISA Classic, VISA Gold, VISA Platinum, VISA Business, VISA Business Gold, Mastercard Standard, Mastercard Gold and Mastercard Business cards. In 2019, IBA began issuing UnionPay debit and credit Classic, UnionPay Gold and UnionPay Platinum cards, denominated in both AZN and US dollars. In June 2014, IBA became the first Azeri bank to issue VISA PayWave-branded cards, having previously launched Mastercard contactless cards.
PASHA Bank offers a range of VISA Debit and Debit Mastercard debit cards and VISA and Mastercard credit cards, standard and gold cards. In 2024, PASHA Bank had 792,611 active cards in circulation and over 19,416 POS terminals.
In May 2019, PASHA Bank, partnered with Turkish Airlines to issue a co-branded Miles & Smiles credit card. Cardholders can earn air miles with card purchases at participating retailer networks.
Kapital Bank – With its base of savings accounts, Kapital Bank is Azerbaijan’s largest card issuer, claiming over 8.17 million active cards as at end-2024, most of which are VISA cards. By establishing its own processing centre, Kapital planned to introduce loyalty and co-branded cards to the market but had neither by September 2014. In 2008, the bank was the first to issue VISA Infinite cards in Azerbaijan.
All Kapital cards are branded either VISA or Mastercard. Its salary cards are branded Debit Mastercard. In 2019, the bank launched a Student Smart card, in partnership with Mastercard. Students can receive their scholarships and make payments via the card both inside and outside the country. Kapital also offers ATM-based card-to-card funds transfer services on VISA and Mastercard cards. The bank also issues digital and gift cards.
In July 2022, Kapital Bank announced the rebranding of BirKart as the Birbank card. The Birbank card comes in three forms, Cashback, Umico and Miles. Each type of Birbank card will be offered in two versions, debit, and instalment. Birbank Cashback gives the holder double VAT bonuses and cashback from 1.5% to 30% for cashless payments, Birbank Umico will allow customers to earn additional Umico bonuses, and Birbank Miles that can be redeemed for any flight ticket. As of 2021, the share of the Birbank card in the Azerbaijani instalment card market was 60%. Birbank card has more than 11,000 partner stores all over the country.
Xalq Bank offers a range of VISA and Mastercard debit, standard and gold cards, topped with a VISA Platinum card for the most privileged customers. DIZAYN, a Mastercard Standard card, allows personalisation and issuance of up to three subsidiary cards for family members. Also available is a virtual VISA card, which can be used for online payments but not at an ATM or POS. In 2024, Xalq had 125,648 cards in circulation.
During 2013-14, Xalq Bank promoted a discount deal with Qatar Airways, giving holders of all its card types a 10% discount on flights booked with cards, including VISA Platinum, VISA/MC Gold, VISA Classic/MC Standard, VISA Electron, Dizayn Kart or Internet cards. Its payroll cards are branded Maestro or Electron.
Bank of Baku is a significant player, with 366,848 cards in circulation as of 2024.
In late 2011, Bank of Baku announced the launch of ‘Bolkart,’ a credit card programme. By June 2012, according to the bank, 60,000 cards had been issued – a significant proportion of the country’s total credit card base – and discounts for Bolkart cardholders had been arranged at more than 300 shops. In July 2013, the bank said Bolkart cards had reached 120,000 and announced they would be rebranded as Mastercard or VISA cards with international functionality.
Other card programmes include Maestro and Electron debit cards and a range of Mastercard and VISA credit/-charge cards, including Gold Mastercard and Diamond VISA premium cards.
Unibank, an innovative VISA and Mastercard issuer, was the first bank in Azerbaijan to offer cards with individualised graphical designs, via a special website. The bank also issues premium VISA and Mastercard cards, including Platinum, Infinite, World Elite, and Black cards. Its Albali- Plus product combines four functions – credit, debit, deposits, and tax payments – together with cashback and free mobile banking. The bank also offers digital and gift cards. As of 2024, Unibank had 2,440,898 active cards in circulation.
Bank Respublika, in cooperation with the Wolt commercial platform, introduced new co-branded cards based on the Visa payment system to the market in 2023. The card allows users to receive 5% cashback as Wolt credits on delivery orders, which can be used as a discount on subsequent orders. As of 2024, Bank Respublika had 311,261 active cards in circulation.
Salary Cards
Payroll (salary) cards have been widely introduced in Azerbaijan. Payroll cards are issued in the name of the employee and attached to a Special Card Account (SCA) with the bank, to which the employer transfers all payments due, including salaries, bonuses, vacation allowances, and travel allowances. The annual fee and ATM withdrawal charges are paid directly by the employer.
In 2023, the number of salary cards grew by 5.34% to reach 2.88 million. In 2021, the issuance of new agricultural cards, cards for receiving lump-sum social benefits, compensation to depositors of closed banks and registration of jobs led to a significant increase in the number of cards. Most banks in Azerbaijan issue salary and payroll cards.
International Money Transfers
As in other Eurasian states, international money transfers are the key means of payment for enabling cross-border remittances, though Azerbaijan is much less dependent on inflows than most regional neighbours. With its subsidiaries in Russia and Georgia, International Bank of Azerbaijan is a dominant player in the sector. IBA also has partnerships with Blizko, Contact, Migom, Xpress-Money, Kart Transfer, Western Union, Coinstar and Iba-Express.
Remittances in Azerbaijan increased in 2024, with 3.36 billion (above 2019 levels) money transfers received (-28.1% from 2023) for a total value of AZN 1.67 billion (-32.1% from 2023). The increase was largely driven by increased flows from Russia as well as Turkey and USA.
| 19 - Azerbaijani Remittances | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | GR 23/24 | CAGR 5Y | |
| Inflow: | |||||||
| Number (000s) | 2,226.9 | 2,139.3 | 3,592.0 | 4,686.4 | 3,368.3 | -28.13% | 0.71% |
| Value (AZN m) | 1,638.6 | 1,947.3 | 4,714.3 | 2,468.0 | 1,674.3 | -32.16% | -4.36% |
| ATV (AZN 000s) | 735.8 | 910.3 | 1,312.4 | 526.6 | 497.1 | -5.61% | -5.03% |
| Outflow: | |||||||
| Number (000s) | 983.5 | 942.1 | 587.2 | 1,400.8 | 1,195.3 | -14.67% | -1.98% |
| Value (AZN m) | 805.2 | 1,192.8 | 631.7 | 616.4 | 527.9 | -14.36% | -10.66% |
| ATV (AZN 000s) | 818.7 | 1,266.1 | 1,075.8 | 440.0 | 441.6 | 0.36% | -8.86% |
| Source: Central Bank of Azerbaijan (CBA). | |||||||
Most banks in Azerbaijan offer money transfer and remittance services.
Appendix
Bank Sector Changes – Background
Bank Standard was wholly owned by AB Standard CJSC, one of the largest financial and industrial holding companies in Azerbaijan, with interests including insurance and construction as well as banking. In April 2016, Bank Standard and IBA were said to be in talks to merge their assets within the framework of the plan on consolidation of Azerbaijan’s banks. Additionally, Bank Standard appealed to the Financial Market Supervisory Body of Azerbaijan for the financial support. In September 2016, the license of Bank Standard was revoked.
DemirBank – Among other second-tier banks, DemirBank (known up to October 2009 as Azerdemiryolbank), 65%-owned by local shareholders, was one of the most innovative. DemirBank offered a range of VISA and Mastercard debit cards and credit cards. It competed with the big banks on price and services. DemirBank’s license was revoked Dec. 23, 2017.
Historic Azerbaijan Card Breakdown
Like the card schemes in other Eurasian and European countries, CBA no longer report details per card product type. In order to give an indication regarding the different card product, types issued in the country, the historic card breakdown for the period 2010 to 2014 is kept for information.
With market share peaking at 81% of cards issued in 2010, VISA slipped back to 49% in 2014 but remains the dominant player. Electron and Maestro/Cirrus accounted for 68% of cards issued in 2014, down from 78% in 2013. Evidence of increasing interest in credit and charge cards is indicated by the gradual rise in issuance of VISA Classic and Mastercard Standard cards.