Fintech & payments regulation in Azerbaijan (2026)
Fintech and digital payments in Azerbaijan: licensing regime.
Azerbaijan operates a dedicated, in-force licensing regime for digital payments and fintech under the 2023 Law on Payment Services and Payment Systems, with the Central Bank (CBAR) as the sole licensing and supervisory authority. Payment institutions and electronic-money (e-money) institutions must hold a CBAR licence (issued for an indefinite term), and several have already been licensed. CBAR also operates the national instant-payment rails and is actively rolling out an open-banking framework, while BNPL has no dedicated standalone regime.
Legal framework
Law No. 987-VIQ 'On Payment Services and Payment Systems' (adopted 14 July 2023, in force 9 November 2023), administered and supervised by the Central Bank of the Republic of Azerbaijan (CBAR)
Key points: digital payments & fintech in Azerbaijan
Dedicated payments law in force
Law No. 987-VIQ 'On Payment Services and Payment Systems' was adopted on 14 July 2023 and entered into force on 9 November 2023, with a compliance/licensing alignment deadline of 14 April 2024. It governs payment institutions, e-money institutions, payment system operators, banks and non-bank credit institutions.
CBAR is the single regulator/licensor
The Central Bank of the Republic of Azerbaijan regulates payment services and issues licences to payment institutions and e-money institutions; such licences are granted for an indefinite period.
Licences actively being issued
CBAR has issued perpetual e-money institution licences under the new law, including to Mpay CJSC and Paysis LLC (11 July 2024), Azwallet LLC and Baku Pay, confirming the regime is operational, not merely on paper.
Foreign providers must localise
Foreign payment institutions, e-money institutions and payment-system operators wishing to operate in Azerbaijan must do so through branch offices and obtain CBAR licensing; only locally authorised e-money is recognised.
Instant-payment rails operated by CBAR
CBAR operates the Instant Payment System (IPS) for 24/7 retail transfers (settled in ~5-20 seconds via phone/email identifiers) alongside the AZIPS RTGS system, built on the ISO 20022 standard; transaction volumes grew strongly through 2025.
Open banking framework rolling out
CBAR approved 'Requirements for network channels used between payment service providers for payment initiation and account information services' on 10 December 2024 and developed an Open Banking Manual defining API/interface standards, under the 2024-2026 Financial Sector Development Strategy; a regulatory sandbox is also in place. No dedicated BNPL-specific regime currently exists.
Timeline of decisions
- Decision · officialOpen Banking goes live: 13 banks fully integrated
As of October 2025, thirteen Azerbaijani commercial banks completed API integration under the Open Banking framework, with six more in the final stage. Marks the transition from rule-setting to live interoperability between account-holding banks and third-party payment service providers.
Central Bank of the Republic of Azerbaijan
- Guidance · officialCBAR launches dedicated Fintech Portal (fintech.cbar.az)
The Central Bank launched fintech.cbar.az, a unified portal housing the Regulatory Sandbox, Open Banking resources, virtual-asset guidance, and distributed KYC information. Consolidates the innovation-facing infrastructure of the regulator into a single interface for fintech applicants.
Central Bank of the Republic of Azerbaijan
- EnforcementFirst Electronic Money Institution license issued under new framework
Tiko Azerbaijan MMC became the first entity to receive an EMI license from the Central Bank under the regime established by the 2023 Law on Payment Services and Payment Systems. Signals the licensing machinery is fully operational for non-bank payment firms.
Azerbaijan Fintech Association (AzFina)
- Decision · officialOpen Banking API Requirements approved, Resolution 49/3
The CBAR Management Board approved Requirements for network channels between payment service providers covering account-information and payment-initiation services, entering force 21 December 2024. Implements Article 62.7 of the Payment Services Law and sets binding technical API standards for Open Banking.
Central Bank of the Republic of Azerbaijan
- Enforcement · officialCompliance deadline: all PSPs must hold CBAR license or registration
The six-month transition window in the Law on Payment Services and Payment Systems expired, requiring every payment institution, e-money institution, and payment system operator to hold a Central Bank license or complete mandatory registration. Transforms the previously unregulated non-bank payments market into a fully licensed sector.
Central Bank of the Republic of Azerbaijan (Law No. 987-VIQ text)
- Decision · officialFinancial Sector Development Strategy 2024-2026 adopted
The CBAR Management Board adopted a three-year strategy placing digital finance, Open Banking, CBDC research, and financial inclusion at the core of economic modernisation. Sets the overarching policy roadmap under which all subsequent digital-payments reforms, including the digital manat pilot and open-finance API ecosystem, are being executed.
Central Bank of the Republic of Azerbaijan
- Decision · officialCBAR Decision 01/2: Regulation on payment and e-money institution activities
The Central Bank issued detailed licensing rules for payment institutions and EMIs, setting minimum initial capital, own-funds composition, currency-exchange activity conditions, and consumer-lending limits. Provides the operational rulebook beneath the 2023 Law and makes licensing applications actionable.
Central Bank of the Republic of Azerbaijan
- Decision · officialAniPay mobile app enables 24/7 retail access to Instant Payment System
The Central Bank's AniPay application was made available to all bank customers integrated into the IPS, enabling real-time transfers via mobile number, email, PIN, or QR code around the clock. Extended the IPS rail from bank-to-bank infrastructure to mass consumer use.
Central Bank of the Republic of Azerbaijan (e-cbar portal)
- Decision · officialInstant Payment System (IPS) launched in full commercial mode
Following a pilot from 12 August 2020, the IPS went live commercially, enabling 24/7/365 instant AZN transfers between individuals, businesses, and government agencies within 5-10 seconds. Established Azerbaijan's foundational real-time retail payment rail, a core deliverable of the 2018 Presidential State Program.
Central Bank of the Republic of Azerbaijan
- Law · officialPresidential Decree #508: State Program on Expansion of Digital Payments 2018-2020
President Aliyev approved a three-year state program to dramatically expand cashless payments among citizens, businesses, and public authorities and to mandate development of an instant payment system. This decree is the foundational policy instrument behind every subsequent digital-payments infrastructure initiative, IPS, AniPay, AZQR, and catalysed the eventual 2023 licensing law.
Central Bank of the Republic of Azerbaijan (Presidential Decree #508)
Sources
- azfina.az/en/xeberler/odenis-xidmetleri-ve-odenis-sistemleri-haqqinda-yeni-qanu
- vlm-az.com/post/new-requirements-for-the-payments-market-are-on-the-way-a-close-
- cbar.az/page-461/regulations?language=en
- mondaq.com/financial-services/1451674/regulation-of-digital-payments-and-foreign
- cbar.az/press-release-4692/central-bank-issues-e-money-institution-license-to
- azernews.az/business/238511.html
- cbar.az/pages/stats-monthly?language=en
- azernews.az/business/252184.html
- cbar.az/press-release-5061/mrkzi-bank-trfindn-aciq-bankciliq-uzr-istifad-tlim
- cbar.az/press-release-5292/azerbaijans-financial-market-starts-to-implement-o
- cbar.az/press-release-5245/central-bank-launches-new-digital-platforms?langua
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Next topicOrientation, not legal advice: verify against the primary sources linked above. Last verified 25 May 2026. Methodology & how to cite · State of Technology Regulation 2026