Kazakhstan Cards and Payments - Opportunities and Risks to 2025

Kazakhstan Cards and Payments - Opportunities and Risks to 2025

  • October 2021 •
  • 53 pages •
  • Report ID: 5810737 •
  • Format: PDF
Kazakhstan Cards and Payments - Opportunities and Risks to 2025

Summary
‘Kazakhstan Cards and Payments - Opportunities and Risks to 2025’ report provides detailed analysis of market trends in the Kazak cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, cheques, and direct debits during the review-period (2017-21e).

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 (2021e-25f). It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

‘Kazakhstan Cards and Payments - Opportunities and Risks to 2025’ report provides top-level market analysis, information and insights into the Kazak cards and payments industry, including -
- Current and forecast values for each market in the Kazak cards and payments industry, including debit, and credit cards.
- Detailed insights into payment instruments including cards, credit transfers, cheques, and direct debits. It also, includes an overview of the country’s key alternative payment instruments.
- Ecommerce market analysis.
- Analysis of various market drivers and regulations governing the Kazak cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.

Scope
- The central bank, through the Kyrgyz National Net Settlement Service (KG NNSS) and Domestic Settlement Service (DSS) projects, implemented the settlement mechanism of domestic transactions made using Mastercard (November 2020) and Visa (January 2020) cards, respectively, in the national currency. Previously, domestic payments made using international cards were processed in the accounting currency of the international payment system outside the country. As a result, Visa and Mastercard card holders no longer bear conversion costs while making payments in the national currency within the Kyrgyz Republic. This also increased the speed of final settlements between Kazak banks for domestic transactions made with these cards. A similar project is being developed for UnionPay cards.
- To facilitate instant fund transfers, the central bank developed a new payment system called Su?qar. The system went live in February 2019 and enables instant payments and fund transfers between customers of banks participating in the system. Initially, the system was only available for fund transfers between individuals, but it was later extended to businesses. The system supports transfers using mobile numbers and QR codes. Participants in the system include Bank CenterCredit, Eurasian Bank, Halyk Bank, Bank RBK, Alfa-Bank, and Altyn-i Bank.
- Effective May 1, 2020, the merchant service charges in sectors including education, medical services, pharmacies, payment for parking spaces, toll roads, agricultural services, and real estate were reduced. This was a result of a collaboration between the central bank, Visa and Mastercard, and commercial banks to promote non-cash payments in the country. As part of this, Visa and Mastercard reduced their interchange fee to 1% in the above-mentioned sectors (1.3% for the pharmaceutical segment). Following this, banks including Halyk Bank, Kaspi Bank, Forte Bank, Sberbank, ATF Bank, Bank CenterCredit, Jusan Bank, and Eurasian Bank reduced their merchant service charges. This resulted in a decline of the average merchant service charge to 1.5%, compared to 2.3% previously.

Reasons to Buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Kazak cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Kazak cards and payments industry.
- Assess the competitive dynamics in the Kazak cards and payments industry.
- Gain insights into marketing strategies used for various card types in Kazakhstan.
- Gain insights into key regulations governing the Kazak cards and payments industry.
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