Azerbaijani credit card market

Azerbaijanis are showing a preference for credit cards, resulting in increased credit card transaction values and volumes; due to a rising demand for consumer credit and the number of banks offering instalment cards.

In 2014, the credit card market accounted for 21.8%, 21.7% and 19.8% of the overall payment cards in terms of number of cards in circulation, transaction volume and value respectively. Growing employment levels and disposable incomes saw increased demand for consumer credit, fuelling demand for credit cards during the review period. Moreover, a decrease in interest rates on loans also facilitated demand for consumer credit.

The availability of instalment credit cards was the primary factor driving growth in Azerbaijan’s credit card market. These cards allow consumers to purchase goods and make payments in instalments, with the amount spent being automatically divided into 1–12, 18 or 24 month repayment schedules. Iinstalment cards currently account for 80% of total credit cards in circulation. Bank of Baku, Unibank and YapiKredi Bank are the top three issuers of installment cards in Azerbaijan.

To promote the usage of credit cards in the country, Visa launched contactless payments in partnership with McDonald’s and Pasha Bank for consumers in Azerbaijan. In addition, the Visa Easy Payments Service was launched at McDonald’s restaurants, for which no PIN or signature is required for payments under $25.5 (AZN20).

A report on the Azerbaijan payments market can be found here

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