Increasing adoption of contactless payments observed among Kazakhstan residents
Laid-Back Analysis:
C'mon folks, let's talk cashless payments, shall we? Seems there's been a shift in preferences among the good folks of Kazakhstan, according to our favorite online joint.
The National Bank of Kazakhstan got their stats heads together and found out what's shaking in the payment world, focusing on cash use.
What's really going down is a steady decline in cash transactions -- about a 10.3% drop over two years! That means less than half of folks now prefer cash compared to back in '22.
It's not just cash that's taking a backseat, though. Phone number-based money transfers are also stepping out, dropping from 77.0% in '22 to 72.0% in '24.
On the bright side, other payment methods have been stepping up big time! QR code usage skyrocketed by 1.2 times, credit card payments soared by 1.6 times, and contactless payments had the most significant growth—a whopping 5.3 times increase! Electronic wallet payments weren't far behind with a 4.5 times growth spurt.
The National Bank believes the decline in cashless payments via card or phone number is due to law changes and the introduction of universal tax declarations. Plus, it seems the amount being transferred no longer matters when going cashless, as 84% of respondents in '24 said it doesn't influence their decision.
Now, here's the low-down on regions that still dig on the green stuff: Jambyl Region (69%), East Kazakhstan Region (64%), Atyrau Region (63%), Akmolinsk Region (59%), and Ulytau Region (57%). The opposite end of the spectrum is Shymkent city (34%), Aбаy Region (33.3%), and Astana city (20%).
Intriguingly, Almaty city experienced a 3% increase in cash lovers, while Astana city saw more than a double drop in '24, bringing average cash preference down to 49% in '24, a 11.1 percentage point decrease from '22.
Some other things to keep in mind: the world's seen a big push towards digital payments, Kazakhstan's been advancing its digital infrastructure, and economic factors like inflation can sway payment preferences. Based on all that, it's safe to guess digital payment methods have been on the rise in Kazakhstan, but detailed studies from '22-'24 would give more specifics.
The decline in cash transactions and phone number-based money transfers is creating room for growth in digital payment methods like QR code usage, credit card payments, contactless payments, and electronic wallet payments in Kazakhstan's business and finance sector, driven by changes in laws and tax declarations. However, certain regions such as Jambyl Region, East Kazakhstan Region, Atyrau Region, Akmolinsk Region, and Ulytau Region still favor cash, while Shymkent city, Aбаy Region, and Astana city have shown a significant shift towards digital payments.
Despite the increase in cash usage in Almaty city and the decrease in Astana city, there seems to be a larger trend of moving away from cash and towards digital payment methods in Kazakhstan's finance and technology sector, influenced by global trends, digital infrastructure advancements, and economic factors like inflation.
