Rise in Cashless Transactions Among Kazakhstan Residents: Quantifying the Increase in Digital Payments During the First Quarter
Headline: Going Cashless: The Surging Tide of Digital Payments in Kazakhstan
Let's dive into the latest trends shaping Kazakhstan's payments landscape: cash withdrawals vs. cashless payments.
Tug-of-War: Cash Withdrawals vs. Cashless Transactions
Kazakhstan has witnessed a significant surge in cash withdrawals in 2024, with transactions reaching a whopping 25.4 trillion KZT – marking a staggering growth of 10.9% compared to 2023. This year-on-year increase is higher than previous years, where growth was roughly around 5%. Interestingly, this surge in cash withdrawals is contrary to the global push for cashless transactions. Despite the surge, the share of cash withdrawals in total card transactions has remained relatively stable in 2024, hovering around 13.3% – a slight decrease from 13.8% in 2023 [1].
Preferred Payment Methods: Banks, QR, and Beyond
Kazakhstan ranks high globally in terms of contactless payment adoption, a key consumer trend [3]. Bank cards, both physical and virtual (linked to wallets like Apple Pay, Google Pay, or Garmin Pay, have become commonplace. Moreover, QR-based payments are increasingly popular as they facilitate user experience and offer a seamless, unified payment infrastructure. Electronic wallets are another preferred method, providing flexibility for daily transactions. In addition to these popular options, experts predict that biometric authentication and artificial intelligence will revolutionize payment security and convenience [3].
Innovation, Collaboration, and Regulation: Supporting the Digital Payments Boom
The Kazakh government is actively fostering the growth of digital and fintech solutions. The launch of the Digital Tenge, the country's Central Bank Digital Currency, was completed in late 2023, with several banks issuing payment cards linked to the program. Open Banking is also currently under pilot testing in 2025 [2]. The Astana International Financial Centre (AIFC) offers a unique regulatory sandbox, attracting over 3,500 companies and substantial investment, paving the way for fintech innovation [2].
Bridging the Gap: Regional financial inclusion and digital disparities
Development of payment systems, including digital wallets and QR payments, has increased transparency and financial inclusion across Kazakhstan, providing better access to formal financial services for both urban and rural areas [3]. While major cities like Almaty and Astana lead the way in cashless adoption, the expansion of digital infrastructure, such as mobile apps and internet access, is gradually reducing regional disparities in financial access [3].
Key Takeaways: The Cashless Wave Swells
- Cash withdrawals have seen an unprecedented surge in 2024, but share in total transactions has remained relatively stable.
- Contactless payments, QR, and electronic wallets are gaining popularity, with biometric and AI-powered systems on the horizon.
- The Kazakh government is pushing for digital and fintech advancements, and regulation is becoming increasingly aligned with global standards.
- Efforts to improve digital infrastructure are helping to bridge regional financial gaps, ensuring better access for all.
[1] National Bank data[2] AFK data[3] Mastercard data
I, as a business professional, find it fascinating that while cash withdrawals in Kazakhstan have witnessed a significant surge in 2024, technology is playing a crucial role in shaping the nation's payments landscape. This includes the growing popularity of contactless payments, QR-based transactions, and electronic wallets, with innovations like biometric and AI-powered systems set to revolutionize payment security and convenience. As a financial expert, I am closely following the government's initiatives to foster digital and fintech solutions, which could potentially bridge the gap in regional financial inclusion and disparities.
