Electronic payment systems in Kazakhstan

2023: Increase in the volume of non-cash payments by a third - up to 54.8 trillion tenge

In Kazakhstan, there is a significant increase in the volume of non-cash payments, which by the end of 2023 increased by a third compared to 2022. This became known on August 1, 2024. The total amount of transactions reached ₸54,8 trillion.

According to Italic, referring to a PwC study, the number of non-cash transactions in 2023 increased by 43%, and their total volume increased by 49%, reaching ₸32,3 trillion. The average check of non-cash payment also showed an increase of 4%, amounting to ₸5,9 thousand.. The frequency of using cashless payments reached a record 5.4 billion transactions.

As of May 1, 2024, 76.6 million payment cards were in circulation, which is 11% more than 2023. In parallel with this, there is a significant expansion of the network of POS terminals - by April 1, 2024, their number increased by a third, reaching 1.1 million units.

Despite the general trend towards digitalization of payments, the volume of cash transactions also showed an increase of 16%, reaching ₸22,7 trillion. However, the share of cash transactions in the total volume of payments decreased by 7 percentage points, amounting to 41%. The number of cash withdrawals at ATMs in 2023 decreased by 8%, to 240 million, while the average withdrawal amount increased by a quarter - from ₸75,2 thousand to ₸94,7 thousand.

PwC analysts note that the cashless payments market, whose growth accelerated after the pandemic, will continue to increase amid active digitalization in Kazakhstan, the development of e-commerce platforms and changes in consumer behavior. From 2019 to 2023, the volume and number of non-cash transactions increased 5.5 times.

Online payments showed especially impressive growth. In 2023, their amount increased by two-thirds, reaching ₸16 trillion, and the number of transactions increased by a third, to 2.6 billion. The offline payments market also reached a significant volume of ₸16,1 trillion, an increase of 44% compared to 2022. Most of the offline payments - 75%, or ₸12 trillion - are accounted for by Smart Pay (QR, Apple Pay, Samsung Pay, Google Pay, Android Pay, Garmin Pay).^[1]

2021

83% of all non-cash payments are made online in Kazakhstan

Almost 83% of all non-cash payments made in Kazakhstan were made via the Internet and mobile phone. Over the year, the amount of transactions increased 2.5 times^[2].

In January-June 2021, the volume of non-cash payments in Kazakhstan amounted to 29.6 trillion tenge, which is 2.4 times more than in the corresponding period last year (12.4 trillion tenge).

Over the past 5 years, the volume of non-cash payments has been growing in Kazakhstan by an average of 2.2 times a year, which indicates the rapid development of this direction, writes Finprom.

In Kazakhstan, as well as around the world, mobile finance has become one of the current trends in the telecommunications and financial technology markets. Almost 83% of all non-cash payments made in Kazakhstan were made via the Internet and mobile phone. Over the year, the amount of transactions increased 2.5 times.

When analyzing the international experience of applying innovations for card products, the main trend was determined: the integration of payment card functionality into mobile phones. In Kazakhstan, as everywhere in the world, more and more users pay for goods and services through mobile payments.

According to a survey by the Bureau of National Statistics of the ASPiR of the Republic of Kazakhstan, in 2020, 21.8% of users used mobile payments when making purchases on the Internet. In regional terms, this type of payments is most common among respondents in Aktobe (48.5%) and Zhambyl (32.7%) regions, as well as Shymkent (32.1%).

Mobile finance is available in Kazakhstan almost everywhere. By July 2021, there were 16 million mobile subscribers in the country with access to the Internet. Over the year, their number increased by 6.9%.

The number of non-cash transactions in Kazakhstan in six months increased 2.5 times

As of July 1, 2021, 54.0 million payment cards were in circulation in Kazakhstan. The most common are debit cards, their share is 71.3%, the share of credit cards is 25.8%. Debit with a credit limit and prepaid cards account for 2.8%. In Kazakhstan, the number of payment cards in circulation has grown to 54 million units.

In January-June 2021, the volume of transactions using payment cards of Kazakhstani issuers amounted to 39.6 trillion tenge, the number - 2726.4 million transactions. At the same time, over the same period, the number of non-cash transactions increased 2.5 times to 2589.3 million operations and 2.3 times in volume, reaching 29.8 trillion tenge.

The holders of payment cards carried out 137.1 million operations to withdraw cash in the amount of 9,816,3 billion tenge. There is a decrease in the number of cash withdrawals compared to January-June 2020 by 8.6%. At the same time, the volume of cash withdrawal operations increased by 30.6%.

The main share of non-cash transactions in Kazakhstan was made through Internet/mobile banking (67.2% of the total number of transactions and 83.1% of the total volume of non-cash payments and money transfers) and POS terminals (32.7% and 16.4% of the total number and volume of non-cash payments and money transfers).

Cash dispensing operations were mainly carried out through ATMs (98.7% and 87.8% of the total number and volume of cash dispensing operations).^[3]

2019: Non-cash payments in Kazakhstan nearly tripled

The AFK analytical center presented in December 2019 an overview of statistics on non-cash payments on bank cards in Kazakhstan in October 2019.

In October 2019, the volume of non-cash payments on cards used in the Republic of Kazakhstan (Kazakhstan) amounted to 1,512,6 billion tenge, having increased by 2.7 times compared to October last year and by 11.5% compared to September. The city of Almaty remains the absolute leader in the volume of non-cash transactions on payment cards. However, in recent months, it has been losing ground. Almaty's share in the total volume of payments in October amounted to 36.3%, having decreased from 45.3% a month earlier and from 72.3% in August of this year.

The ratio of non-cash payments on cards to cash withdrawals at ATMs continues to update the maximum, increasing to 112%. At the same time, the share of non-cash transactions in the total volume of transactions (non-cash. payment plus ATM withdrawals) rose in October to 53%.

When splitting payments by region, only in the city of Almaty there is a decrease in the volume of non-cash payments - minus 10.8% in October, to 548.6 billion tenge. Also, the minimum growth of non-cash payments in the reporting month was recorded in East Kazakhstan region (+ 2.9%), and all other regions are showing two-digit growth. On an annualized basis, non-cash payments are reduced only in the Akmola region.

2017

Results of the first half of the year

According to the results of the first half of 2017, the volume of remittances from the Republic of Kazakhstan abroad increased by 25.8%. The Zolotaya Corona payment system remains the market leader, the analytical agency reports Ranking.kz.

According to the National Bank of the Republic of Kazakhstan, the largest number of outgoing funds in January-June 2017 was sent through the Golden Crown system.

Since 2016, Zolotaya Korona has increased its volumes for sending money transfers abroad from 34.1% to 45.4% of the total share of all systems represented on the market of the Republic of Kazakhstan.

For the first and second quarters of this year, according to the Golden Crown - Money Transfers system, the ^[4] was sent for 32.3 billion tenge, or 53.7%, more money compared to last year.

Golden Crown is also the leader in Kazakhstan in terms of growth in the number of transactions abroad - over the year their number increased by 92 thousand transactions, an increase of 22.4%.

Contact Registration, Leader, Golden Crown and CyberPlat

• The payment system "" Leader fulfilled the requirements of the Law of the Republic of Kazakhstan "On Payments and Payment Systems" and was included in the register of systems that have the right to provide payment services in the country. The register is published on the website of the National Bank of the Republic of Kazakhstan.
• The payment system Contact has passed the registration procedure in accordance with the Law of the Republic of Kazakhstan "On Payments and Payment Systems." The payment system has been providing money transfer services in Kazakhstan since 2001 and has been developing partnerships banks with the country's financial organizations. The network of CONTACT service points in the Republic has about 350 points, the flagship office of the System operates in Astana on the basis of the branch of JSC "."Nurbank
• At the beginning of the year, the National Bank of the Republic of Kazakhstan (NB RK) recognized the Golden Crown payment system as significant. "Golden Crown" became one of the three and the only Russian payment system that received significant status in Kazakhstan. The document of the National Bank of the Republic of Kazakhstan notes that through the Golden Crown payment system "payments and (or) money transfers are made during the year... in the amount of at least twenty-five percent of the total amount of money sent through money transfer systems in the Republic of Kazakhstan and abroad and received to the Republic of Kazakhstan through money transfer systems from abroad payments and (or) money transfers."
• The company "CyberPlat Kazakhstan" passed at the beginning of the year the registration procedure in accordance with the Law "On Payments and Payment Systems." CyberPlat (CyberPlat) has been operating in Kazakhstan since 2006. Its payment infrastructure has more than 30,000 outlets, and regional representative offices are located in all major cities of the republic. CyberPlat provides acceptance of payments in favor of mobile and fixed-line operators, providers of wired and mobile Internet, security alarm systems, suppliers of housing and communal services and many other services. Payment transactions take place in real time, the funds are credited to the account within a few seconds.

2016

Law No. 11-VІ of 26.07.2016 "On Payments and Payment Systems," signed by President of the Republic of Kazakhstan Nursultan Nazarbayev, streamlined state control and supervision over the activities of electronic payment systems, settled relations in the organization of the payment market and regulated the procedures for the implementation of payment services. The law determined that private non-bank organizations that provide payment services in Kazakhstan are required to register with the National Bank, and information about this should be reflected in the register.

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