he growth of global payment revenues—11% in 2017 and 6% in 2018—significantly exceeded the global economic growth rate. According to the Worldpay report, by 2022, the global e-commerce volume is expected to surpass $4.6 trillion using 140 online payment systems. Currently, payment methods worldwide include credit and debit cards, prepaid cards, e-wallets, online banking, direct debit, buy-now-pay-later options, cash, direct carrier payments, and cryptocurrencies. Even a 1% increase in digital payments globally can boost consumer spending by $104 billion.

Key national documents supporting digital payment development in Azerbaijan include the Strategic Roadmap for the Development of Telecommunications and Information Technologies and the State Program on Expansion of Digital Payments in 2018–2020. The Center for Analysis of Economic Reforms and Communications (CAERC) currently monitors and evaluates the implementation of both documents. As a result of the State Program, the annual volume of cashless payments could increase by approximately 17 billion AZN, allowing the share of cashless payments to grow by 7% annually. Consequently, the share of cash in overall economic transactions is expected to decrease from 74% to 40%.

Although interbank settlements under the National Interbank Settlement System decreased last year, transfers via the Small Payments Clearing System and Fast Money Transfer Systems increased. Overall, the number of transactions in payment and money transfer systems in Azerbaijan grew by 40% in 2019. The number of payment cards rose by 11.2%, reaching 7.3 million. Transactions via debit and credit cards increased by 38% in number and 31% in value. In 2019, domestic cashless payments for e-commerce transactions increased by 67% in number and 97% in value. For the first time in history, the volume of e-commerce in Azerbaijan reached a record level.

According to UNESCAP calculations, Azerbaijan is a regional leader—from Southern Europe to China—in paperless trade and trade facilitation. Although cashless payments via ATMs slightly decreased in the past year, POS terminal payments grew by up to 20%. However, the expansion of ATMs and POS terminals remains slow, with a decline observed especially in regional areas.

Recent amendments to the Tax Code introduce next-generation control-cash devices integrated with electronic information systems to improve digital tax administration. Citizens making cash or cashless payments in retail or catering sectors can receive tax incentives on a portion of the paid tax, encouraging cashless transactions.

Leading in electronic exports, the Azexport.az portal has facilitated export orders exceeding $1.5 billion over the past three years. Azerbaijan is also actively developing digital payment systems in areas such as instant payment systems, smart student cards, contactless rail fare payments, and cashless public transport operations.