Azerbaijan’s parliament approved in a first reading a package of amendments that would formally allow smartphones equipped with the required software to be treated as POS terminals.
The proposed changes to the law on electronic commerce would expand the definition of a POS terminal to include equipment used for cashless and contactless payments, as well as cash withdrawals, including suitable mobile devices.
Bill Introduces Technology Neutrality
The legislation would remove language limiting the law’s application to electronic commerce conducted only within Azerbaijan.
It would also introduce a principle of technology neutrality, requiring regulations not to favor one technology or restrict the use of alternative solutions.
The list of payment methods would specifically include POS terminals, electronic wallets and other instruments. Cashless payments for goods, work and services in electronic commerce would have to be processed through payment service providers.
The bill would also replace written confirmation requirements for certain transactions with confirmation in the form of an electronic document.
Changes Have Not Yet Taken Effect
The amendments have passed only their first reading and are not yet in force. The draft says the law would take effect 30 days after final adoption, presidential signature and official publication.
The text of the draft legislation is available on the Milli Majlis website.
Source: Vesti Baku.