Payments Landscape in Kazakhstan: Opportunities and Risks to 2022

Payments Landscape in Kazakhstan: Opportunities and Risks to 2022

Summary

The author’s "Payments Landscape in Kazakhstan: Opportunities and Risks to 2022", report provides detailed analysis of market trends in Kazakhstan's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, direct debits, and cheques during the review-period (2014-18e).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2018-22f). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together the author’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

This report provides top-level market analysis, information and insights into Kazakhstan's cards and payments industry, including:

• Current and forecast values for each market in Kazakhstan's cards and payments industry, including debit and credit cards.


• Detailed insights into payment instruments including credit transfers, direct debits, cheques, and cards. It also, includes an overview of the country's key alternative payment instruments.


• E-commerce market analysis.


• Analysis of various market drivers and regulations governing Kazakhstan's cards and payments industry.


• Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.

Scope

• The government is taking several steps to drive payment card usage. For instance, to increase the acceptance of payment cards at merchant outlets, the government introduced a law in January 2016 mandating the installation of POS terminals by individual entrepreneurs as well as businesses involved in trades such as vehicle trade, hotel services, insurance, and education. Consequently, according to the central bank, as of January 1, 2018, 78,700 retail outlets accept payment cards in Kazakhstan, a rise of 19.1% compared to 2016.


• Contactless technology is an emerging trend in Kazakhstan. Major banks including Forte Bank, Eurasian Bank, and Qazkom now offer contactless cards. Most recently in May 2018, VTB Bank partnered with Mastercard to issue Mastercard-branded contactless debit and credit cards to customers. In addition to merchant payments, contactless technology is also used to pay for transportation. In December 2015 contactless acceptance devices were installed at metro stations by Mastercard and ATF Bank, enabling passengers to make contactless payments using Visa- and Mastercard-branded payment cards.


• Alternative payments are also expected to gain prominence, with banks and payment solution providers launching new payment options. In May 2018, Eurasian Bank in collaboration with Mastercard and technology company OpenWay launched a digital wallet called Eurasian Pay. The service allows Mastercard card holders to make contactless payments using their Android phones at merchant outlets. In addition to contactless payments, merchants are also accepting payments via QR code scanning. In February 2018 Visa in collaboration with Kazkommertsbank (rebranded as Qazkom) launched mobile wallet mVisa, enabling users to make QR-based payments. Prior to this the same collaboration launched Homebank Pay in October 2017, a mobile wallet that allows users to make payments by scanning a QR code.

Reasons to buy

• Make strategic business decisions, using top-level historic and forecast market data, related to Kazakhstan's cards and payments industry and each market within it.


• Understand the key market trends and growth opportunities in Kazakhstan's cards and payments industry.


• Assess the competitive dynamics in Kazakhstan's cards and payments industry.


• Gain insights into marketing strategies used for various card types in Kazakhstan.


• Gain insights into key regulations governing Kazakhstan's cards and payments industry.