AZE.US
Azerbaijan is seeing a clear shift in how people use bank cards, with debit cards growing while credit cards lose ground.
According to Central Bank figures cited in local media, the country has 22.4 million payment cards, including 20.3 million debit cards and 2.1 million credit cards. Over the past year, the number of debit cards rose by 12%, while credit cards declined by 9%.
The change points to a broader adjustment in consumer behavior. More users appear to be relying on their own funds for everyday payments rather than using revolving credit lines.
Banking expert Emin Karimov said one reason for the decline in credit cards is the tightening of limits. In the past, banks could open larger credit lines on plastic cards, but current risk controls have pushed those limits closer to four or five times a customer’s monthly salary.
Credit cards also carry a different type of financial risk for consumers. Unlike a standard loan with a fixed payment schedule, a credit card operates as a revolving line. A customer spends, repays part of the balance, sees the limit restored and can borrow again. For many users, that cycle can make it harder to fully close the debt.
Credit specialist Ismayil Mammadov described the shift away from credit cards and toward debit cards as part of a broader improvement in financial literacy. In his view, consumers are becoming more cautious about “living on debt” and are moving toward a model based on savings, digital payments and cashback.
The cost of credit is another factor. Mammadov said the effective annual interest rate on credit cards may reach 25% to 28%, making them a relatively expensive product for households.
At the same time, debit cards have become more useful. They are no longer just cards for holding money or receiving salaries. Banks now attach cashback, miles, balance interest, installment options and other features to debit products, making them more attractive for daily use.
Mammadov gave a simple example: a person earning 1,500 manats who buys a 2,000-manat laptop with a credit card over 12 months at 26% annual interest may end up paying about 2,280 manats, or roughly 280 manats extra. With a debit card, if the same buyer saves in advance and receives 5% cashback, the return may be about 100 manats, creating a total financial advantage of around 380 manats compared with the credit-card option.
The trend also reflects regulation. According to Mammadov, Azerbaijan’s Central Bank has tightened responsible lending standards: people whose monthly debt payments exceed 45% of official income are less likely to receive a credit card.
For banks, debit cards are also becoming a valuable business line. Instead of relying mainly on interest from unsecured credit, banks can earn from cashless turnover, transaction volume and customer activity inside digital ecosystems.
The numbers suggest that Azerbaijan’s card market is not simply expanding. It is changing shape. Debit cards are becoming the main tool for daily payments, while credit cards are increasingly seen as a costly and risky form of borrowing rather than an easy extension of personal income.
AZE.US