Saule Zhumanova, Chief Manager of IPS, speaking at the mobievent.kz event shared her vision of the future of Kazakhstan's remittance and payments market in 2024. Her analytical view and forecasts are based on the significant changes in the country's financial sphere.
Increase in the Share of Cashless Transactions
The share of non-cash transactions in Kazakhstan has increased from 82% to 86%. This indicates the increased interest and trust of the population in non-cash payments, which contributes to the development of the digital economy.
Launch of Digital Tenge
The launch of the Digital Tenge was announced, representing a significant step towards digitalizing the national currency and may radically change the payment services market.
Opening of Open API and IPS Development
Ms. Zhumanova paid particular attention to the launch of Open API by NPC (National Payment Corporation) JSC and the development of the Instant Payment System (IPS), into which ten banks of Kazakhstan have been integrated so far. She emphasized that IPS provides more accessible and technological payment solutions.
Growth in volumes of transfers through SMP
The average volume of transfers through IPS was 15% in 2023, with the highest growth in November. For the entire year, more than KZT130 billion worth of transfers were made between customers of participating banks. This demonstrates the rapid adoption and popularity of the system among Kazakhstanis.
Development Prospects for 2024
Zhumanova outlined two potential scenarios for IPS development in 2024: pessimistic and explosive. The pessimistic scenario assumes slow growth of S2C and development of QR payments, while the explosive scenario includes interbank S2C and QR payments growth.
Impact on Customer Behavior and Money Flows
According to Zhumanova, there will be a significant change in customer behavior and cash flows in the case of the explosive scenario. IPS services, including transfers and QR payments, contribute to a more even distribution of customer funds among different banks, reducing the dominance of individual players such as Kaspi.
Conclusion
The development of digital payment technologies and systems such as IPS play a crucial role in shaping Kazakhstan's future financial landscape. Their evolution and acceptability among households and banks will determine the direction of the remittance and payments market in 2024 and beyond.
The share of non-cash transactions in Kazakhstan has increased from 82% to 86%. This indicates the increased interest and trust of the population in non-cash payments, which contributes to the development of the digital economy.
Launch of Digital Tenge
The launch of the Digital Tenge was announced, representing a significant step towards digitalizing the national currency and may radically change the payment services market.
Opening of Open API and IPS Development
Ms. Zhumanova paid particular attention to the launch of Open API by NPC (National Payment Corporation) JSC and the development of the Instant Payment System (IPS), into which ten banks of Kazakhstan have been integrated so far. She emphasized that IPS provides more accessible and technological payment solutions.
Growth in volumes of transfers through SMP
The average volume of transfers through IPS was 15% in 2023, with the highest growth in November. For the entire year, more than KZT130 billion worth of transfers were made between customers of participating banks. This demonstrates the rapid adoption and popularity of the system among Kazakhstanis.
Development Prospects for 2024
Zhumanova outlined two potential scenarios for IPS development in 2024: pessimistic and explosive. The pessimistic scenario assumes slow growth of S2C and development of QR payments, while the explosive scenario includes interbank S2C and QR payments growth.
Impact on Customer Behavior and Money Flows
According to Zhumanova, there will be a significant change in customer behavior and cash flows in the case of the explosive scenario. IPS services, including transfers and QR payments, contribute to a more even distribution of customer funds among different banks, reducing the dominance of individual players such as Kaspi.
Conclusion
The development of digital payment technologies and systems such as IPS play a crucial role in shaping Kazakhstan's future financial landscape. Their evolution and acceptability among households and banks will determine the direction of the remittance and payments market in 2024 and beyond.