International Journal of Research in Social Sciences Vol. 6 Issue 12, December 2016, ISSN: 2249-2496 Impact Factor: 7.081 Journal Homepage: http://www.ijmra.us , Email: editorijmie@gmail.com Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A 296 International Journal of Research in Social Sciences http://www.ijmra.us , Email: editorijmie@gmail.com The impact of cashless payments on economic growth in Azerbaijan Khayaladdin R. Taghiyev * Sadi I. Eminov ** Samir R.Guliyev *** Abstract Our aim is to prove relationship between electronic payments and overall economic growth in Azerbaijan. Using data from Azerbaijan markets over the period 2008-2015, the results confirm that migration to efficient electronic retail payments stimulates overall economic growth and consumption. In this paper, among payment instruments, only payment cards have been used for measuring the impact on economic growth. Retail payment transaction technology itself is also associated positively to real economic aggregates. We also show that initiatives to integrate and harmonize retail payment markets foster consumption and thereby have a beneficial effect for whole economy. Additionally, the findings reveal that the impact of cashless payments on economic growth is more pronounced in Azerbaijan. Our findings are robust to different regression specifications. The study supports the adoption of policies promoting a swift migration to efficient and harmonised electronic payment instruments in Azerbaijan. Keywords: electronic payments, electronic methods, payment systems, economic growth * Doctoral student, Institute of Scientific Research on Economic Reforms of Ministry of Economyof the Republic of Azerbaiijan ** Payment Systems and Settlements Department,The Central Bank of the Republic of Azerbaijan *** Financial manager, Azertexnolayn