OREANDA-NEWS. April 21, 2009. Circulation of cash money creates certain problems for the state: costs connected with printing, storage, transportation, and the high wear rate of denominations. Moreover, a part of money does not come to the banks, thus, sharply limiting their credit capabilities, reported the press-centre of IBA.

At the same time, the vast uncontrolled flow of cash money creates the conditions for shadow economy: the taxes are not paid, and as a result, the payments to the state budget are delayed, and etc. One of the ways of solving this problem is a large-scale application of the cashless transfer of funds. The electronic transfer of funds gains an increasing popularity in our country, and in the context of implementation of government program aimed at the development of cashless transfer of funds there are new opportunities for more intensive development of plastic cards' market.

In his interview to "Zerkalo" newspaper Elmar Sadikhov, the general director of "Azericard" processing centre, speaks about the primary tends in this sphere and describes the successfully implemented projects.

- "Azericard", a subsidiary of the "International Bank of Azerbaijan", is actively engaged in implementation of new up-to-date high-technology projects including the payment of fares via bank proximity smart cards, payment for the services provided by telephone companies and cellular communication operators, payment for utilities, payment of customs duties and taxes, payment for mobile and Internet banking, cashless card-to-card transfers.

Within its system, "Azericard" maintains 3.5 million cards, 1400 ATMs, 7000 POS-terminals and 64 booths. "Azericard" currently renders its services to 30 banks. Among them are both Azerbaijani and foreign banks, such as, the "Royal Bank of Scotland Uzbekistan", the "International Bank of Azerbaijan - Moscow", the "International Bank of Azerbaijan - Georgia".
Owing to its extensive operations and following the results of its performance in 2008, the actual turnover with respect to plastic cards issued by the banks, which operate through "Azericard" system, amounted to 4 billion manats.

- At what stage is the development of Internet banking?

- In the second half of 2008, "Azericard" processing centre launched the new version of Internet banking. The vital difference from the old version was that absolutely any holder of a card issued by IBA or the other bank working with "Azericard" and offering its clients this kind of service, could connect to the Internet banking through ATM (automatic teller machine). One just has to insert a card into ATM, go to "Service" menu, and print out the list of one-time passwords, whereupon, using any computer connected to the Internet, one should go the web site on www.hbservice.com, sign in, and after that, one can use the card account.

With the Internet banking, all services available in ATM's menu are accessible. And there is also quite new service, such as, the opportunity to block the card in case of its theft or loss. It is especially convenient in the cases when there is no telephone near at hand and it is impossible to get through to around-the-clock helpdesk of customer support service. You should not worry even if have lost the list of passwords. You can go to ATM and take the new one, in which case the old one is deactivated straight away.

- Electronic commerce (e-commerce), which makes it possible to buy the goods and services over the Internet using the bank plastic card, has become widespread all over the world. What are your plans in connection with the electronic commerce?

- In our country, there is also a great interest in this kind of payments. "Azericard" is glad to inform you that we have successfully accomplished the processes required for introduction of this service with respect to the payment systems of "VISA" and "MasterCard". During 2009, we also plan to accomplish the processes required for introduction of electronic commerce within the framework "AMEX" payment system.

We suggest starting the process of connection to the e-commerce channels provided within the framework of payment systems and we guarantee a comprehensive assistance in this process. On the part of "Azericard" the certification is free of charge. Owing to the technologies of “3D Secure Verified by VISA” and “MasterCard Secure Code”, "Azericard" ensures a complete safety of payments both for the individual card holders and for the business entities. "Azericard" offers this kind of service to all types of commercial and service rendering enterprises.

These types of enterprises may include the ones like: airlines, which allow its clients an advance booking and offer an online sale of air tickets on their web-sites with delivery home, office and by an e-mail (e-ticket);hotels, which allow its clients making room reservations and paying for this by their bank cards directly via hotels' web-sites without wasting their time on telephone conversations and ordering the transfer of money by bank; cellular communication operators and Internet service providers that can sell their services online, thus, offering the new and more convenient ways of payment and expanding their marketing outlets; web stores, through which it is possible to make a sale of any goods and effect their delivery to the customers; online restaurants offering the varied menu with an online payment by card and delivery by the time fixed and to the place indicated, and etc.

At present, we actively work with our clients; many projects are nearing their completion and will soon be presented to the general public. As of today, the project for connection of "Elcell" company, the clients of which already actively use this service, has been fully completed. "Azericard" offers 2 optional types of connection. In case if commercial enterprise has its own electronic platform, we can integrate it into our system. The client will have an opportunity to pay for the services and receive payment online by going to the web site of an operator, airline, or a shop. The second option - in case of the absence of its own Internet page, we suggest using our Internet portal on bazaar.az, where each enterprise will have an individual web page and the flexible toolkit for filling a virtual shop by the content. This portal differs from all other web-stores by its ingenuity, friendliness, and versatility. Easy-to-use control panel, high functionality, and graphic design options enabling to select the one that is appropriate to the graphic design of commercial enterprise, are the distinctive features of bazaar.az portal.

- Nowadays, the interest in mobile banking service is rapidly growing. What is the reason for that?

- The interest in this product can be attributed to the fact that the cardholders have got an opportunity to use their card accounts via cellular telephone. It is noteworthy that one of its main advantages is the SMS-notifications. These are the SMS-notices for the cardholder about each transaction carried out through his/her card (receipt and withdrawal of money from the card). Using the mobile banking service you can also top up the balance for your own telephone and pay the debts for electricity no matter in what spot of the world so-ever you are.

However, this service is currently available only to "Azercell" subscribers. At present, we are finalizing the works on expanding the mobile banking services. As early as in May - June 2009, we are going to offer the new version of connection to the mobile banking service through ATM. For this purpose, you have to insert a card into ATM, type the number of your telephone, and you are connected. In May - June 2009, the same options as those available with ATM and Internet banking, up to the option of card-to-card transfer of funds (Kart Transfer) will also be included into the menu of mobile banking.

- What is the current pace of development of non-cash payment system?

- Since the processing centre started its operations, the turnover with respect to plastic cards has grown not less than by 20 times as much. On the quarterly basis, the banks provide the international payment systems of "MasterCard", "Visa", and "American Express" with the statistical information about the trends of development in the market of plastic cards. It is monitored by the various companies engaged in market research, which compare the key figures of performance of different processing centers and banks, and give their own assessment of performance results.

And, in November 2008, when giving "Azericard" the "International European Quality Award", the dynamics of our business development evaluated based on the data received from the international payment systems was also taken into consideration. This prize, as well as the "International Award for the Best Trade Name" received in May 2006 at the congress of the "International Trade Leader's Club" held in Spain, confirms the recognition of "Azericard" company as the leader at the market of plastic cards in Azerbaijan.

"Visa International" has recently released a report on the development of plastic cards' market in the CIS countries. In terms of the absolute number of issued cards, Azerbaijan takes the 4th place in this region.

- And what are "Azericard's" prospects?

- "Azericard" has developed and approved the company development strategy for 2009 - 2013. According to this strategy, "Azericard", being a leader in card technologies and the market leader, plans to advance the card sphere by offering the new projects and solutions for the card users in Azerbaijan. During 2009 alone, the introduction of many projects is planned. Among them, one can mark out the project for connection of all cards within "Azericard" system to the "3D Secure" technology.

This will enable the cards holders to get the "3D Secure" password via an automatic teller machine, and owing to this, it is absolutely safe to use a card on the Internet. The "3D Secure" technology is the latest development in the field of safe payments over the Internet introduced by the international payment systems of "VISA" and "MasterCard". The project aimed at enabling the change of card's pin-code via an automatic teller machine (PIN change), which is planned for introduction in summer, is at the stage of completion.

It will enable the cards holders to change optionally their individual pin-code via the automatic teller machine. The project for connection to the utilities payments system "APUS" of the "National Bank of Azerbaijan" will also be implemented this year in summer. Owing to this system, the cardholders will be able to pay the debts for electricity, gas, water, and other utilities. It is also planned to expand the functional in the mobile banking menu, develop the functional of the Internet banking system, and connect the wireless POS-terminals at the country's sales outlets. This project provides for the development of non-cash payment, since it opens up opportunities for using these terminals in every corner of the country.

The considerable experience, an advantage of being the market pioneer, the strong management team, and the highly professional level of employees enables the company to introduce the new projects and technologies and to carry out the work aimed at the geographical expansion of business.