"APA-Economics" presents an interview with Avsar Gurdal, General Director of the international payment system "Mastercard" for Azerbaijan and Turkey:

- Mr. Avshar, what projects in the field of digitization is Mastercard currently implementing with the Central Bank of Azerbaijan?

- The Central Bank of Azerbaijan attaches great importance to the digitization of the economy.

We have a very close cooperation in this field.

It is possible to apply global technologies very quickly in Azerbaijan.

Apple Pay and Google Pay are the latest examples of this.

The volume of use of both digital payment systems among the population has reached 10%.

The Central Bank monitors the processes taking place in the world, holds discussions with us, listens to our plans for Azerbaijan and prepares a road map taking them into account.

Currently, 75% of trade transactions in Azerbaijan are carried out with cash payments.

As a result of the steps taken jointly with the Central Bank, I think that non-cash payments in Azerbaijan will increase to 50%.

- When will this be possible?

- It may be sooner than our expectations.

We expect the volume of cash and non-cash payments to equalize within a few years.

- By the way, has working with the new management of the Central Bank affected your plans in any way?

- The Central Bank is very interested in the development of technology.

Focused on digitalization of Azerbaijan.

I can say that an environment of open dialogue has been created with the new management, we cooperate very well.

If there is dialogue, there is development.

- What steps are being taken in the field of "open banking" and what are your goals?

- "Open banking" has become a trend in the world.

Some countries are changing the legislation in this regard, and in some countries, this was formed by itself, the dynamics of the market created a necessity.

For example, it is just happening in Turkey.

As I mentioned in Azerbaijan, global processes are closely monitored.

Various consultations were held with the Central Bank.

I can tell it's appreciated.

In the coming years, "open banking" can be implemented in Azerbaijan as well.

This affects the entire banking ecosystem, both companies and customers.

"Open banking" is a system that facilitates both accounting and management of various bank accounts from a single platform.

It therefore provides access to credit products with the digitalization of small and medium-sized businesses, as well as the created data trail.

In general, our main role here as MasterCard is to create the necessary technological infrastructure to implement solutions that enable account payments.

- Has the Russian-Ukrainian war affected money transfers in any way?

- After the "COVID-19" pandemic, some cultural changes have occurred in the world.

Examples include working remotely, working with different countries, mobile work.

The lifestyle has changed.

People have already started to become more global citizens.

That is, different nationalities can work in different places without going to that place.

As people are more mobile, the demand for remittances is also increasing rapidly.

We have also created money transfer solutions based on these forecasts in advance.

- What is the level of cooperation with local banks in your new services related to money transfers?

- We have signed an agreement on cooperation with four banks in Azerbaijan regarding money transfers.

A similar agreement is expected to be reached with 3 more banks in the near future.

We have no doubt that all banks will join this.

The number of these banks is expected to increase very rapidly.

Because there is a huge demand.

Our proposed solution has been successful around the world as it is a system that speeds up money transfers abroad, reduces and discloses service fees in advance, and provides transparency to the consumer.

We have encountered the same demand in Azerbaijan.

- The activity of fintech companies in Azerbaijan is expanding.

Does "Mastercard" plan to cooperate with any companies in the local market?

- The adaptation of the Azerbaijani population to technology is so high, it is so open to innovation that, in addition to local players, global and Turkish players have a serious demand for this ecosystem.

We expect many new players to enter the Azerbaijani market in the field of fintech.

We also continue our activities in the form of cooperation with fintechs.

In fact, we are also a technology company.

We democratize technology.

We cooperate with newly established small companies as well as large companies in the field of card issuance.

In other words, we provide the infrastructure for new players to quickly enter the market.

- One of the main trends at the moment is the creation of digital currencies.

Countries are working on it.

The Central Bank of Azerbaijan cooperates with international financial institutions in this direction.

Can "Mastercard" contribute to the creation of digital manat?

-

As I mentioned, we exchange ideas with the Central Bank on many issues.

We discuss certain issues with them, and when necessary, they hold a meeting with Mastercard's global market experts.

As for the digital manat, we currently do not have any cooperation in this field, but it is among the discussed issues.

- There was a problem with payment on "Mastercard" bank cards on Baku-Sumgait trains.

However, it is possible to use cards belonging to competing payment systems very easily.

What causes the problem?

- The problem that arose between the acquiring bank and the organization providing services to it made it difficult to pay with bank cards related to "Mastercard".

There is a need for joint improvement between the local bank that provides card acceptance and the organization that provides it.

We are currently working with the acquiring bank and related company to resolve the issue.

This issue will be resolved soon.

- You said that the economy of Azerbaijan is rapidly adapting to technological solutions.

What is your outlook for contactless payments in the coming years?

- Mobile contactless payments, "Apple Pay" and "Google Pay" play a very important role in the digitalization of the economy.

According to our research, it can take you about 5 hours to realize you've lost your wallet, but only 45 minutes to realize you've lost your cell phone.

This means that mobile phones have already become a fundamental part of our lives.

When we start making payments by phone, in fact, this habit becomes a very important step in terms of digitalization of payments.

Digitization of payments is a priority for Mastercard as well as the Central Bank.

We will continue to expand and invest in our programs in this area.

We aim to expand programs and NFC payments that enable customers to benefit from discounts in various service areas in stores and restaurants.

According to our expectations, NFC payments will increase from 10% to 30% in 2023.

But the volume of growth can be more than that.

If 30% of the population adapts to an innovation, its growth from 30% to 70% happens very quickly.

Therefore, we expect that payments through "Apple Pay" and "Google Pay" will increase to 60% in 2024.