Central Bank launches a system of instant payments


August 12, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) has launched an instant payment system in a pilot regime and plans a number of innovations by the end of 2020.

According to the CBA, the system allows payment transactions between individuals, businesses and governmental agencies 24/7/365 through bank accounts using simplified identifiers (FIN code, taxpayer identification number (VOEN), mobile phone number, email), and the money will be immediately reflected in the recipient's bank account.

"The launch of the IPS will increase the efficiency of digital payments, as well as provide immediate liquidity for its participants," the CBA stresses.

Currently, the integration of 13 banks and the State Treasury on the IPS platform is fully completed, and B2B, C2C (Business to Business, Customer to Customer) payments are provided in a pilot regime.

In order to expand the IPS, work is underway to integrate new banks into the system, as well as gradually increase the functionality for users, which in turn will increase the indicators of non-cash transfers.

"By the end of this year, the system will provide small business entities with functions that will allow them to accept non-cash payments using innovative mobile solutions, such as QR-code, NFC. At the same time, by the end of 2020 the payment function will be launched for about 600 services provided through the IPS, managed by the CBA, through the PBX," the report says.

The Central Bank believes that the opportunities created by IPS will stimulate the growth of digital payments between business entities, a significant reduction in the volume of the cash economy in the country and, ultimately, the formation of a cashless society.

Starting the IPS allows you to perform payment operations within 5-10 seconds. It was developed by Swiss CMA Small Systems AB.