Azerbaijan’s Central Bank, China's UnionPay ink cooperation agreement Photo

The Central Bank of Azerbaijan and China's UnionPay International have signed a Memorandum of Understanding aimed at expanding cooperation in card payments and digital transaction technologies, the institutions said on January 30.

The agreement was reached following a videoconference meeting between Deputy Governor of the Central Bank Vusal Khalilov and Wang Lixin, Chief Executive Officer of UnionPay International. Discussions focused on enhancing card issuance, improving interoperability of QR-code payments, and strengthening cross-border payment solutions, Caliber.Az reports per the bank. 

Under the memorandum, the two sides will cooperate on the issuance and processing of UnionPay cards in Azerbaijan, the integration of international money transfer systems, and the deployment of QR-code and token-based payment technologies. The agreement also establishes a legal and institutional framework for closer collaboration between the Central Bank and UnionPay in the payments sector.

Officials said the partnership is intended to support the development of cashless payments in Azerbaijan, improve the security and reliability of card services, and introduce new card-based financial products. The memorandum also envisions joint work on technical infrastructure and operational mechanisms to facilitate the country’s broader transition toward a cashless economy.

UnionPay International operates one of the world’s largest card payment networks, while the Central Bank of Azerbaijan has prioritised digital payments as part of its financial sector modernisation strategy.

By Sabina Mammadli