Increasing Adoption of Digital Payments in Kazakhstan
In the first quarter of 2025, the cashless payment game in Kazakhstan took off like a rocket, with a whopping 22.4% surge compared to the same time last year. This digital revolution now represents a massive 87.1% of all payments in the country, as reported by Liter.kz.
The rise of cashless payments can be attributed to several key factors. The Association of Financial Organizations of Kazakhstan emphasizes the active development of digital financial services, expansion of cashless payment infrastructure, growing trust in fintech solutions, and a shift in consumer behavior towards stricter fiscal control over mobile transfers.
Notably, the availability of POS terminals has skyrocketed, with 67 devices per thousand people, marking a noticeable improvement from last year's 56. This boom in POS terminals is a direct result of increased consumer spending and the growing popularity of cashless transactions.
In terms of cashless transactions, contactless (internet) and QR payments make up an astounding 90% of the total volume, thanks to shifting consumer behavior and a preference for convenience.
However, an oldie but a goodie - cash - is still in the game, with 6 trillion tenge withdrawn from ATMs in the first quarter of 2025, representing a 6.6% increase from the same period last year. This could indicate a continued need for cash in remote areas and a stubbornly high share of the shadow economy.
An average Kazakhstan resident now carries around 211,000 tenge in cash, compared to 181,000 tenge last year.
The Kazakhstani government plays a significant role in encouraging cashless payments through innovative financial policies and partnerships in the fintech and banking sectors. The introduction of Open Banking pilots, the launch of the Central Bank Digital Currency (CBDC), the Digital Tenge, and the development of the Astana International Financial Centre (AIFC) have all fostered a robust fintech ecosystem conducive to cashless payment adoption.
While impressive growth has occurred, recent trends show a stabilization in cashless payment shares, reflecting a complex payment landscape where cash still plays a significant role. The government and private sector continue to invest in expanding digital payment infrastructure to support further transition towards a cashless economy.
- The active development of digital financial services, as pointed out by the Association of Financial Organizations of Kazakhstan, has significantly contributed to the growth of cashless payments.
- Despite the rise of cashless payments, there is still a substantial amount of cash being withdrawn from ATMs, indicating a continued need for cash in certain situations and a persistently high share of the shadow economy.
