en
Opportunity to save costs and time: another innovation for entrepreneurs
Opportunity to save costs and time: another innovation for entrepreneurs
As previously reported, the Central Bank of the Republic of Azerbaijan (CBA) has introduced the “AZQR” standard to participants of the payment market. QR payments are already being accepted in large retail chains and some points equipped with POS terminals. CBA Deputy Chairman Vusal Khalilov stated that all banks are now connected to the IPS system. Discussions are underway with entrepreneurs to expand the implementation and coverage of QR codes.
According to Mr. Khalilov, the main purpose of introducing the “AZQR” standard is to provide citizens with more inclusive services:
“In other words, every bank and fintech organization will enable payments via QR code through their mobile applications at any time. This will make a major contribution to the development of an open payment system. We believe it will also support the growth of fintech companies.”
New Standard, New Requirements
It should be noted that currently QR payments can be made via next-generation POS terminals. Citizens can already use this method to make payments at trade and service outlets through certain banking applications. However, this service is not yet active in all mobile banking apps. Earlier, CBA Chairman Taleh Kazimov announced that by the end of October, all banks would join the “AZQR” standard, making QR-based payments easier.
At present, only two banks — “Birbank” and “TuranBank” — offer their customers the option to make payments via QR code. It should also be noted that the “AZQR” standard includes QR codes issued to both customers and business entities. The standard supports dynamic and static QR codes, as well as models tailored for both buyers and sellers.
Good News for Micro and Small Businesses
There can be various use cases for QR codes. One of the most important is QR codes in sticker form, designed especially for micro and small business owners. These entities can generate a static QR via internet banking or fintech applications, print it as a sticker, and present it to customers for payment. This eliminates the need for additional mobile devices, POS terminals, or any other hardware.
In this regard, QR-based payment acceptance is particularly advantageous for entrepreneurs. Especially for micro and small businesses, it offers significant benefits — they will no longer have to pay one-time or monthly fees for POS terminals linked to a bank account or spend extra funds on technical maintenance. In short, the use of QR codes for accepting payments will reduce investment costs for both entrepreneurs and the banks serving them, while also saving time.
Payments received by micro and small businesses via QR are processed through instant payment systems. This means that the funds are immediately transferred from the customer’s account to the merchant’s account, allowing the entrepreneur to use the funds right away. Unlike before, there is no longer a need to wait days for the funds to be credited.
The Ability to Pay with a Single Tap
Dynamic QR codes will mainly be generated through POS terminals or mobile POS devices. In e-commerce, QR codes placed on invoices will enable customers to make payments easily by scanning them. In the coming months, the use of QR codes is also expected to expand into the transport sector.
The new standard not only simplifies processes for both citizens and businesses across various sectors but also has potential positive effects on the economy as a whole. International experience shows that QR payments increase cashless turnover and help reduce the “shadow economy.” This will further promote the government’s ongoing policy of expanding the volume of cashless payments in the country.
The “AZQR” standard will also enable personal transfers, government payments, utility and budget payments, and expenses made through e-commerce. Business transfers will be possible not only via IBAN but also through tax identification numbers (TINs). Alongside QR codes issued by business entities, citizens will also have access to such functionality, allowing them to perform personal transactions using QR codes.
Both static and dynamic QR models can be generated for different operations. A static QR code is created once and can be used for multiple transactions, while a dynamic QR is generated for each individual transaction and reflects its specific data. It should also be noted that visual requirements will be applied to static QR codes, and more detailed information on this will be provided later.
As previously reported, the Central Bank of the Republic of Azerbaijan (CBA) has introduced the “AZQR” standard to participants of the payment market. QR payments are already being accepted in large retail chains and some points equipped with POS terminals. CBA Deputy Chairman Vusal Khalilov stated that all banks are now connected to the IPS system. Discussions are underway with entrepreneurs to expand the implementation and coverage of QR codes.
According to Mr. Khalilov, the main purpose of introducing the “AZQR” standard is to provide citizens with more inclusive services:
“In other words, every bank and fintech organization will enable payments via QR code through their mobile applications at any time. This will make a major contribution to the development of an open payment system. We believe it will also support the growth of fintech companies.”
New Standard, New Requirements
It should be noted that currently QR payments can be made via next-generation POS terminals. Citizens can already use this method to make payments at trade and service outlets through certain banking applications. However, this service is not yet active in all mobile banking apps. Earlier, CBA Chairman Taleh Kazimov announced that by the end of October, all banks would join the “AZQR” standard, making QR-based payments easier.
At present, only two banks — “Birbank” and “TuranBank” — offer their customers the option to make payments via QR code. It should also be noted that the “AZQR” standard includes QR codes issued to both customers and business entities. The standard supports dynamic and static QR codes, as well as models tailored for both buyers and sellers.
Good News for Micro and Small Businesses
There can be various use cases for QR codes. One of the most important is QR codes in sticker form, designed especially for micro and small business owners. These entities can generate a static QR via internet banking or fintech applications, print it as a sticker, and present it to customers for payment. This eliminates the need for additional mobile devices, POS terminals, or any other hardware.
In this regard, QR-based payment acceptance is particularly advantageous for entrepreneurs. Especially for micro and small businesses, it offers significant benefits — they will no longer have to pay one-time or monthly fees for POS terminals linked to a bank account or spend extra funds on technical maintenance. In short, the use of QR codes for accepting payments will reduce investment costs for both entrepreneurs and the banks serving them, while also saving time.
Payments received by micro and small businesses via QR are processed through instant payment systems. This means that the funds are immediately transferred from the customer’s account to the merchant’s account, allowing the entrepreneur to use the funds right away. Unlike before, there is no longer a need to wait days for the funds to be credited.
The Ability to Pay with a Single Tap
Dynamic QR codes will mainly be generated through POS terminals or mobile POS devices. In e-commerce, QR codes placed on invoices will enable customers to make payments easily by scanning them. In the coming months, the use of QR codes is also expected to expand into the transport sector.
The new standard not only simplifies processes for both citizens and businesses across various sectors but also has potential positive effects on the economy as a whole. International experience shows that QR payments increase cashless turnover and help reduce the “shadow economy.” This will further promote the government’s ongoing policy of expanding the volume of cashless payments in the country.
The “AZQR” standard will also enable personal transfers, government payments, utility and budget payments, and expenses made through e-commerce. Business transfers will be possible not only via IBAN but also through tax identification numbers (TINs). Alongside QR codes issued by business entities, citizens will also have access to such functionality, allowing them to perform personal transactions using QR codes.
Both static and dynamic QR models can be generated for different operations. A static QR code is created once and can be used for multiple transactions, while a dynamic QR is generated for each individual transaction and reflects its specific data. It should also be noted that visual requirements will be applied to static QR codes, and more detailed information on this will be provided later.