The future of the remittance and payments market in Kazakhstan in 2024

2023-12-25 08:48

Saule Zhumanova, Chief Manager of#nbsp;IPS, speaking at#nbsp;the#nbsp;mobievent.kz event shared her#nbsp;vision of#nbsp;the#nbsp;future of#nbsp;Kazakhstan's remittance and#nbsp;payments market in#nbsp;2024. Her analytical view and#nbsp;forecasts are#nbsp;based on#nbsp;the#nbsp;significant changes in#nbsp;the#nbsp;country's financial sphere.

Increase in the Share of#nbsp;Cashless Transactions
The share of#nbsp;non-cash transactions in#nbsp;Kazakhstan has increased from 82% to#nbsp;86%. This indicates the#nbsp;increased interest and trust of#nbsp;the#nbsp;population in#nbsp;non-cash payments, which contributes to#nbsp;the development of#nbsp;the digital economy.

Launch of#nbsp;Digital Tenge
The launch of#nbsp;the#nbsp;Digital Tenge was#nbsp;announced, representing a#nbsp;significant step towards digitalizing the national currency and#nbsp;may radically change the#nbsp;payment services market.

Opening of#nbsp;Open API and#nbsp;IPS Development
Ms. Zhumanova paid particular attention to#nbsp;the#nbsp;launch of#nbsp;Open API by#nbsp;NPC (National Payment Corporation) JSC and#nbsp;the#nbsp;development of#nbsp;the#nbsp;Instant Payment System (IPS), into which ten banks of#nbsp;Kazakhstan have been integrated so#nbsp;far. She emphasized that IPS provides more accessible and#nbsp;technological payment solutions.

Growth in#nbsp;volumes of#nbsp;transfers through SMP
The average volume of#nbsp;transfers through IPS was#nbsp;15% in#nbsp;2023, with the#nbsp;highest growth in November. For#nbsp;the entire year, more than KZT130 billion worth of#nbsp;transfers were made between customers of#nbsp;participating banks. This demonstrates the rapid adoption and#nbsp;popularity of#nbsp;the system among Kazakhstanis.

Development Prospects for#nbsp;2024
Zhumanova outlined two potential scenarios for#nbsp;IPS development in#nbsp;2024: pessimistic and explosive. The pessimistic scenario assumes slow growth of#nbsp;S2C and development of#nbsp;QR payments, while the#nbsp;explosive scenario includes interbank S2C and#nbsp;QR payments growth.

Impact on Customer Behavior and Money Flows
According to#nbsp;Zhumanova, there will be#nbsp;a#nbsp;significant change in customer behavior and#nbsp;cash flows in#nbsp;the case of#nbsp;the explosive scenario. IPS services, including transfers and#nbsp;QR payments, contribute to#nbsp;a#nbsp;more even distribution of#nbsp;customer funds among different banks, reducing the dominance of#nbsp;individual players such as#nbsp;Kaspi.

Conclusion
The development of#nbsp;digital payment technologies and systems such as#nbsp;IPS play a#nbsp;crucial role in shaping Kazakhstan's future financial landscape. Their evolution and#nbsp;acceptability among households and#nbsp;banks will determine the#nbsp;direction of#nbsp;the#nbsp;remittance and#nbsp;payments market in 2024 and#nbsp;beyond.