Azerbaijan has begun processing card-to-card (“card to card”) transfers through the Instant Payments System (IPS), the Central Bank of Azerbaijan (CBA) said in response to APA-Economics' inquiry.
According to the Bank, shifting “card to card” transactions from card processing networks to the Instant Payments System represents a major change in banks’ internal infrastructure and provides several advantages for them.
One of the key benefits is reduced costs for banks, as the Central Bank does not charge a service fee for such transactions carried out through IPS. At the same time, transfers between accounts via IPS are completed instantly—within a matter of seconds. As a result of lower operational costs and optimized processes, banks will be able to offer more efficient services and an improved customer experience.
According to the CBA, the migration process has already begun in stages, and many banks have activated “card to card” transfers via IPS.
The Central Bank also noted that the transition strengthens oversight against cybersecurity and fraud risks: “Under traditional card-network transfers, banks obtain information based only on the 16-digit card number. In IPS, since transactions take place at the account level, both the sender and the recipient are identified more precisely. This enables quicker real-time detection of fraudulent transactions. In addition, card-to-card transfers via card networks carried a risk of card data theft and cloning. As IPS transactions are executed through accounts rather than card details, these risks are significantly reduced.”
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