AZE.US
Azerbaijani banks are quietly scaling back cashback offers that once helped push customers toward card payments and cashless transactions.
Many banks had used cashback programs to attract clients, promising higher rewards in selected categories such as grocery shopping. But over the past year, those rates have been reduced repeatedly. In some cases, cashback on food purchases fell first to 2%, then 1%, and now 0.75%.
The cuts have raised questions among card users about why banks are changing the terms and whether customer opinion is being taken into account.
Lawyer Akram Hasanov told Bizim.Media that cashback was originally a marketing tool designed to bring more people into the banking system.
“The goal was for customers to use cashless payments, open cards and accounts, and increase banks’ turnover,” Hasanov said. “The bank returned cashback to the customer from its own funds.”
According to Hasanov, that stage has largely passed. Azerbaijanis are now accustomed to paying by card, and banks no longer have the same need to spend money on large bonuses to encourage that behavior.
He also pointed to the government’s “ƏDV geri al” program, which allows citizens to receive part of the value-added tax back when they request receipts. Hasanov said the program also encouraged people to use cashless payments and demand receipts.
But he added that the VAT refund campaign may not remain in place permanently.
“Once everyone knows they need to get a receipt and becomes used to cashless payments, this will also be cancelled,” Hasanov said.
The reduction in cashback suggests that banks may be entering a new phase: card payments are no longer something they need to heavily promote. For customers, that means the generous reward campaigns of previous years may become less common, with banks keeping higher cashback only in categories where it still makes financial sense for them.
AZE.US