Central Bank of Azerbaijan tests instant payment system

  12 August 2020    Read: 1097
Central Bank of Azerbaijan tests instant payment system

The Central Bank of Azerbaijan (CBA) launched instant payment system in test regime, AzVision.az reports citing the CBA.

The system was launched within the framework of the State Program for the Expansion of Digital Payments in Azerbaijan for 2018-2020.

According to the bank, the existing infrastructure of the national payment system, created by CBA, meets the most modern requirements in terms of traditional payment systems applied in world practice, and is based on the latest IT achievements. The main components of the national payment system’s infrastructure operate in accordance with the internationally accepted principles of work within the approved regulations.

The launch of the instant payment system will help carry out payment transactions between individuals, business and public entities in 24/7 mode throughout the year via simplified identifiers on bank accounts (PIN code, VOEN, mobile number, e-mail) and instantly display the funds on their recipient's bank account. The system’s commissioning will increase the level of efficiency of digital payments.

At present, integration work on 13 banks and agencies of the State Treasury has been fully completed on the platform of the new system, and implementation of B2B, C2C payments ("business to business", "client to client") in a pilot mode was ensured.

In order to expand the coverage of the new system, work on integrating new banks into it, as well as on the gradual increase of the functionality for users is underway.

Until the end of 2020, small business entities will be provided with function options that will allow them to accept non-cash payments by using innovative mobile solutions such as QR code and NFC. At the same time, the functionality for making payments via this system for about 600 services provided through the government payment portal operated by the Central Bank will be commissioned before the end of this year.

The opportunities created by the instant payment system will contribute to the expansion of digital payments between economic entities, a significant reduction in the volume of the cash economy and finally the formation of a cashless society.

More about: CBA