The Cards and Payments Industry in Azerbaijan: Emerging trends and opportunities to 2020
July 2017
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About the Report
About the Report
The Cards and Payments Industry in Azerbaijan: Emerging trends and opportunities to 2020
Summary
GlobalData's "The Cards and Payments Industry in Azerbaijan: Emerging trends and opportunities to 2020" report provides detailed analysis of market trends in Azerbaijan's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, and payment cards during the review-period (2012-16e).
The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2016-20f). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.
The report brings together GlobalData's research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.
The report provides top-level market analysis, information and insights into Azerbaijan's cards and payments industry, including
Current and forecast values for each market in Azerbaijan's cards and payments industry, including debit and credit cards.
Detailed insights into payment instruments including credit transfers, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
E-commerce market analysis.
Analysis of various market drivers and regulations governing Azerbaijan's cards and payments industry.
Detailed analysis of strategies adopted by banks and other institutions to market debit, and credit cards.
Scope
To promote electronic payments and to reduce dependence on cash, the government introduced a new regulation in December 2016, according to which monthly cash transactions are capped at $16,650.90 (AZN30,000) for VAT-registered businesses with monthly transactions over $111,006.30 (AZN200,000). Similarly, monthly cash payments for other tax payers have been limited to $8,325.50 (AZN15,000). All transactions over the relevant value must be paid electronically. The regulation was made effective from January 1, 2017 for other tax payers, and from 1 April, 2017 for VAT-registered tax payers. These measures are aimed at encouraging cashless payments.
Banks are now also offering dual cards with the functionality of both debit and credit cards. Kapital Bank introduced the Visa Dual Card in Azerbaijan in May 2016, the first debit and credit card utilizing only one chip. The chip of the new card contains the numbers of both cards, which enables the card holder to use it as a debit and a credit card. The card can be linked to more than one account, in currencies including Azerbaijani manats, US dollars, and euros.
Growth in the payment cards market has encouraged several international payment processors to establish their operations in the country. For instance, JCB International, the international operations unit of Japanese credit card issuer and acquirer JCB, launched JCB merchant acquiring operations in Azerbaijan with the International Bank of Azerbaijan (IBA) in February 2016. The move enables JCB cards to be accepted at all the bank's acceptance locations across Azerbaijan.
Reasons to buy
Make strategic business decisions, using top-level historic and forecast market data, related to Azerbaijan's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities in Azerbaijan's cards and payments industry.
Assess the competitive dynamics in Azerbaijan's cards and payments industry.
Gain insights into marketing strategies used for various card types in Azerbaijan.
Gain insights into key regulations governing Azerbaijan's cards and payments industry.
Products
Products
The cards and payments industry in Azerbaijan, Financial cards, Debit cards, Credit cards, E-commerce, Alternative payments
Companies
Kapital Bank
International Bank of Azerbaijan
Bank Technique
AG Bank
Express Bank
Bank of Baku
Unibank
Yapi Kredi Bank
Visa
Mastercard
Table of Contents
Table of Contents
Table of Contents
EXECUTIVE SUMMARY 2
1.1. Market overview 2
1.2. Key facts 3
1.3. Top five industry events 4
2. PAYMENT INSTRUMENTS 10
2.1. Current payment environment 10
3. E-COMMERCE AND ALTERNATIVE PAYMENTS 12
3.1. E-commerce market analysis 12
3.2. Alternative payment solutions 13
3.2.1. PayPal 13
3.2.2. Wallet One 13
3.2.3. Azerpay 13
3.2.4. Visa QIWI wallet 14
3.2.5. Fortumo 14
3.2.6. AzeriCard mobile payment service 14
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 15
4.1. Regulatory framework 15
4.1.1. Regulatory requirements for card issuance 15
4.1.2. Regulatory requirements for the issue of corporate cards 15
4.1.3. Regulatory framework for the conduct of card operations 15
4.1.4. Framework for risk management 16
4.2. Anti-money laundering 16
4.3. Foreign direct investment regulations 16
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 17
6. PAYMENT CARDS 19
7. DEBIT CARDS 21
7.1. Debit card market analysis 21
7.2. Competition in the debit card market 23
7.3. Debit card comparison 25
8. PAY-LATER CARDS 26
8.1. Pay-later card market analysis 26
8.2. Competition in the pay-later card market 28
8.3. Pay-later card comparison 30
9. APPENDIX 31
9.1. Abbreviations and acronyms 31
9.2. Supplementary data 32
9.3. Definitions 39
9.4. Methodology 41
9.5. Bibliography 43
9.6. Further reading 43
List of Figure
List of Figures
Figure 1: Azerbaijan: payment instrument shares by transaction value (%), 2012 vs 2016 10
Figure 2: Azerbaijan: payment instrument shares by transaction volume (%), 2012 vs 2016 11
Figure 3: Azerbaijan: e-commerce market value 12
Figure 4: Azerbaijan: population and economic indicators 17
Figure 5: Azerbaijan: ATMs, POS terminals, and household consumption 18
Figure 6: Azerbaijan: payment cards transaction value and cards in circulation, 2012-20f 19
Figure 7: Azerbaijan: debit card penetration and turnover per card 21
Figure 8: Azerbaijan: debit card scheme and issuer transaction value shares, 2016 23
Figure 9: Azerbaijan: pay-later card penetration and turnover per card 26
Figure 10: Azerbaijan: pay-later card scheme and issuer transaction value shares, 2016 28
List of Table
List of Tables
Table 1: Azerbaijan: key facts, 2016 3
Table 2: Azerbaijan: regional benchmarking of payment cards, 2016 3
Table 3: Azerbaijan: mode of entry of foreign banks 16
Table 4: Azerbaijan: debit card comparison and key features, 2016 25
Table 5: Azerbaijan: gold credit cards comparison and key features, 2016 30
Table 6: Azerbaijan: premium credit cards comparison and key features, 2016 30
Table 7: Azerbaijan: payment instrument transaction values (AZNbn), 2012-16e 32
Table 8: Azerbaijan: payment instrument transaction values ($bn), 2012-16e 32
Table 9: Azerbaijan: payment instrument transaction volumes (millions), 2012-16e 32
Table 10: Azerbaijan: payment cards in circulation by type (millions), 2012-20f 32
Table 11: Azerbaijan: volume of payment card transactions (millions), 2012-20f 32
Table 12: Azerbaijan: value of payment card transactions (AZNbn), 2012-20f 33
Table 13: Azerbaijan: value of payment card transactions ($bn), 2012-20f 33
Table 14: Azerbaijan: debit cards in circulation (millions), 2012-20f 33
Table 15: Azerbaijan: debit card transaction volumes, 2012-20f 33
Table 16: Azerbaijan: debit card transaction values (AZN), 2012-20f 34
Table 17: Azerbaijan: debit card transaction values ($), 2012-20f 34
Table 18: Azerbaijan: debit cards in circulation by scheme (000s), 2012-16e 34
Table 19: Azerbaijan: debit card transaction values by scheme (AZNm), 2012-16e 34
Table 20: Azerbaijan: debit card transaction values by scheme ($m), 2012-16e 35
Table 21: Azerbaijan: debit card transaction values by issuer (AZNm), 2012-16e 35
Table 22: Azerbaijan: debit card transaction values by issuer ($m), 2012-16e 35
Table 23: Azerbaijan: pay-later cards in circulation (000s), 2012-20f 35
Table 24: Azerbaijan: pay-later card transaction volumes, 2012-20f 36
Table 25: Azerbaijan: pay-later card transaction values (AZN), 2012-20f 36
Table 26: Azerbaijan: pay-later card transaction values ($), 2012-20f 36
Table 27: Azerbaijan: pay-later cards in circulation by scheme (000s), 2012-16e 37
Table 28: Azerbaijan: pay-later card transaction values by scheme (AZNm), 2012-16e 37
Table 29: Azerbaijan: pay-later card transaction values by scheme ($m), 2012-16e 37
Table 30: Azerbaijan: pay-later card transaction values by issuer (AZNm), 2012-16e 37
Table 31: Azerbaijan: pay-later card transaction values by issuer ($m), 2012-16e 38
Table 32: Key definitions 39
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