Azerbaijan expects rapid growth in e-commerce — Visa's senior

BAKU, Azerbaijan, July 22. A rapid expansion of the e-commerce sector is expected both in Azerbaijan and globally, said Yevgen Lisnyak, Senior Director of Visa and Head of Strategic Partnerships, Fintech, and Ventures in CIS and Southeast Europe, Trend reports.

“One of the key factors that accelerated the development of this sector was the COVID-19 pandemic. Due to travel restrictions and self-isolation, there was a sharp increase in demand for remote services and online shopping,” he said.

Lisnyak added that the global e-commerce market is currently estimated at $6–7 trillion, accounting for about 20% of global trade. According to him, this segment is growing at a rate of 8–9% annually and may reach $9–10 trillion by 2030.

He noted that global leaders have already emerged in this area — for instance, in the UK and China, e-commerce accounts for more than one-third of total retail turnover. At the same time, in Central Asia, including Azerbaijan, these figures still lag behind the global average, but the growth potential remains high.

"Year by year, we observe stable double-digit growth in e-commerce in Azerbaijan. A favorable environment has been established for the development and adoption of new digital payment services,” the Visa representative explained.

Lisnyak emphasized the regulator's role in shaping the digital economy.

“The Central Bank of Azerbaijan is taking important steps to support this process. These include the adoption of the Law on Payment Services and Payment Systems in 2023, the launch of a regulatory sandbox, and the implementation of three-year financial sector development strategies that also focus on digital payments. The 2021–2023 strategy has been successfully completed, and the 2024–2026 strategy is now underway. All these measures support not only the development of e-commerce and digital payments but also the broader fintech market,” he noted.

Addressing global trends in e-commerce, the Visa representative pointed to artificial intelligence (AI) as one of the most prominent areas, allowing for automation and personalized solutions.

“In Azerbaijan, we are already seeing the application of this technology — from chatbots to personalized product recommendation systems on marketplaces. Moreover, there is active discussion around AI agents globally. Visa recently launched the Visa Intelligent Commerce initiative — an innovative approach to buyer-seller interaction. An 'intelligent' agent can handle routine tasks such as product searches, comparisons, and cart creation. The user only needs to confirm the purchase. We are actively working to scale this initiative with our partners,” he said.

Lisnyak noted that AI technologies provide substantial benefits for both businesses and consumers.

“Visa’s AI-based solution package for e-commerce works both ways: businesses get tools for process optimization, while consumers receive help selecting products and placing orders. For instance, when a user sees many discounts and offers, AI helps create the cart more efficiently, saving time and improving the experience. Payment convenience is also key. Research shows that some users abandon purchases at checkout if their preferred payment option isn’t available,” he stated.

According to him, with the growing popularity of omnichannel interaction — through websites, mobile apps, physical stores, and social media — it is important to build seamless behind-the-scenes processes, and AI plays a key role in this.

“The main goal is to ensure a satisfactory customer experience regardless of the channel. In this case, AI can act either as a passive agent that responds to requests or as an active assistant that proactively offers solutions based on purchase history, geolocation, and other factors,” Lisnyak explained.

He also emphasized AI’s potential to transform business operations at all levels.

“Today, more than half of marketing directors in the U.S. use AI tools to generate content. And that’s just the beginning — smart technologies are being applied across various fields, from text and image generation to augmented reality, allowing users to visualize products in real-world settings,” said Lisnyak.

He added that the combination of AI with augmented and virtual reality opens new horizons for businesses.

“The key is not to be afraid to experiment,” he advised.

Lisnyak also highlighted another strong trend — mobile commerce. According to him, more and more users in Azerbaijan are shopping online through mobile apps rather than traditional websites.

“In response to high demand, local players are actively adapting their services to mobile platforms to stay close to the customer,” he said.

Another trend he identified is Direct-to-Consumer (D2C), where manufacturers interact directly with end consumers, bypassing intermediaries. This supports the growth of social commerce, where purchases are made via platforms like TikTok, Instagram, or Facebook.

“A significant portion of Azerbaijani businesses are already using these channels actively. However, it’s important to ensure proper payment methods. Often, payments are made through basic transfers, which is inconvenient. Visa, together with its partners, is ready to provide solutions that allow small and medium businesses to accept payments conveniently and seamlessly,” he noted.

Lisnyak listed Visa technologies that simplify the payment process. Among them is Visa Click to Pay, which securely stores card data in encrypted form and allows one-click payments across platforms displaying the service icon. It is especially effective when used with Visa Payment Passkey, enabling payment confirmation via biometric scans. He also mentioned Tap to Phone, which transforms a seller’s smartphone into a contactless payment terminal without additional hardware.

Additionally, Lisnyak mentioned Cybersource, a platform that enables quick deployment of electronic acquiring with minimal technical effort, offering access to a full range of modern payment services.

Among the global trends likely to impact Azerbaijan, Lisnyak pointed to the rapid growth of B2B commerce and relevant platforms. He also noted the rise of quick commerce — a model where delivery speed is critically important.

“Often, long delivery times become a barrier for buyers. Not wanting to wait days, consumers prefer to go to a store and buy what they need immediately. That’s why fast-growing express delivery services and AI-powered logistics technologies are gaining momentum. In some countries, drone delivery is already being tested,” he explained.

He emphasized that logistics remains one of the key challenges for e-commerce in Azerbaijan, especially due to long delivery times to regions. In this context, he highlighted the government’s Online Azerbaijan project, aimed at providing internet access to even the most remote parts of the country.

“Internet infrastructure is the backbone of digital economy and online services. As far as I know, the program is being successfully implemented, and we will soon see real results that will drive the growth of e-commerce in Azerbaijan,” Lisnyak concluded.