(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 22. Mastercard plans
to introduce the latest innovations in Kazakhstan and the region,
Rafal Trepka, CEO of Mastercard in Central Asia, told Trend in an exclusive
interview.
Multi-directionality and diversification
"Mastercard is a successful fintech with a more than 50-year
history that operates in 210 countries. With the help of unique
technologies and innovations, we create the present and determine
the future in finance and in other areas of life and business
across the world, including Kazakhstan," he said.
Trepka noted that starting at the top level, the core element of
the company's global strategy today is multi-directional, which is
about providing choice to cardholders and business customers.
"Now the focus of payment development is to offer the client
freedom of choice: how, where and with what to pay. We want to give
our partners, be it banks or retailers, the opportunity to use
everything they are already accustomed to, and also help create a
unique payment experience for customers. For example, a client may
have different currencies and crypto assets in his account. And we
will offer him instant, seamless and secure conversion and payment
anywhere in the world," he said.
As he noted, the second element of Mastercard's strategy is
diversification.
"Diversification is firstly about who and how we serve.
Historically, our main partners have been banks. Today, the number
of partners has expanded to government agencies, fintechs,
technology companies, merchants, retailers, etc. We have created a
powerful payments ecosystem. We are doing this both at the global
level and in Kazakhstan," Trepka said.
The role of Mastercard in digitalization of
Kazakhstan
According to him, Kazakhstan strives to become the leader of
Central Asia in digitalization of all spheres of life, including
the development of the digital economy and fintech.
"Thanks to synergy between the government and the private
sector, the country has seen explosive growth in cashless payments
in recent years. In 2022, the volume of non-cash card transactions
in the country amounted to 102.8 trillion tenge ($222.4 billion) or
99 percent of GDP. Against this background, the share of non-cash
transactions across the country increased to 82.5 percent. Thus,
Kazakhstan can already be called a cashless country, he said. In
large cities - Almaty or Astana, people almost no longer use cash.
Technologies such as contactless payment, Tap on Phone, digital
wallets have become commonplace in Kazakhstan and part of the daily
lives of millions of people. Many of them may even feel
inconvenience when they have to pay in cash somewhere," he
said.
Trepka added that in this regard, the role of Mastercard as an
international technological player in the development and
implementation of these solutions in the country is recognized by
all market participants, colleagues and partners.
"On a daily basis, we help our key partners, banks, to develop
multi-rail consumer solutions. The world is developing rapidly, new
customer segments are constantly being formed. Banks strive to
provide them with additional options for transferring money and
payments to suit their changing demands and needs. And we help them
provide these solutions by offering flexible configuration of
payment methods and transfers, including cross-border transfers,"
he said.
Regional CEO pointed out that in the long term, Mastercard is
looking at Web 3.0 and focused on payments and products across the
country and interaction with government agencies to implement
them.
"We are talking about an instant payment system, digital tenge
and open banking. Our goal is to“land” these services in
Kazakhstan in cooperation with the National Bank and second-tier
banks. If we talk about specific solutions, first of all, for our
cardholders there is Digital First or Digital Only technology,
which implies a complete refusal to use plastic cards, with the
replacement of these cards with a tokenized card in a smartphone.
For those who still need a card, we, together with banks, issue
cards made of biodegradable plastic. As you know, Mastercard has
committed to eliminating plastic cards by 2028. There are also
specially shaped cards for those who have poor vision, the
so-called Touch Card, which, for example, we issued jointly with
the Kazakh bank "Altyn," he said.
Development of tourism and cybersecurity
solutions
Rafal Trepka noted that Mastercard is a key technology partner
to the global travel and tourism industry, offering solutions,
expertise and consulting both globally and locally.
"Our data shows that the travel industry has bounced back
following the coronavirus pandemic, with people around the world
wanting to travel more, explore new destinations and gain
invaluable experiences. Kazakhstan has impressive opportunities for
the development of all types of tourism, and we actively cooperate
with various organizations - city halls, national companies in the
field of tourism. We provide Kazakhstani partners with access to
our Data Tourism Insights Platform, which allows them to use
analytics to develop foreign and domestic tourism in the country.
We are also ready to provide technology and global expertise in the
implementation of various programs and promote Kazakhstan as a
touristic destination among the 2.3 billion Mastercard holders in
the world through the Priceless platform. We are confident that
thanks to our cooperation with partners from Kazakhstan, the
tourism industry in the country will soon realize its enormous
potential," he said.
Regional CEO added that Mastercard is also focused on developing
cybersecurity solutions in Kazakhstan.
"The use of biometrics for identity verification is already
working in many countries and, as far as I know, is perceived
positively in Kazakhstan: according to our research, 30 percent of
respondents in Kazakhstan fully support it. In Kazakhstan there is
now a very large field of activity and many areas where it is
possible to implement both financial and non-financial solutions
from Mastercard. We actively help to develop the country's economy
and its people because we are building a sustainable world where
everyone can prosper. So we don't intend to stop," he said.
Choosing Almaty as a regional hub
As Trepka pointed out, Mastercard has been and will continue to
be an important participant in the payment environment in
Kazakhstan, along with other local and international players.
"It should be noted that the issuance of payment cards together
with our partner banks is, although an important part of our
activities in the country, but does not reflect the full variety of
projects and areas that we are working on today in Kazakhstan. We
are currently developing and planning to introduce the latest
innovations in the country and region, sharing wide international
experience, supporting projects not only in the digitalization of
the economy, but also in the field of education, culture, etc.," he
said.
As an example, Rafal Trapka pointed out Mastercard's decision to
choose Almaty as a regional hub in the CIS, Central and Eastern
Europe for the development of its consulting business.
"This decision was supported by the President of Kazakhstan
Kassym-Jomart Tokayev during a recent bilateral meeting between the
country's leadership and Mastercard top management in New York as
part of the visit of the President of the Republic of Kazakhstan to
the United States. The meeting discussed issues of cooperation in
the development of e-government and the digital economy, the
introduction of innovation and digitalization as a tool for
increasing the efficiency of public administration, increasing
transparency and ensuring more inclusive and sustainable economic
growth," he said.
According to him, together with the National Bank of Kazakhstan
Mastercard is working to provide expert and technological support
as part of the implementation projectsrelated to the national
payment system.
Kazakhstan Digital Country Partnership
Program
"These and other initiatives were reflected in the framework
Agreement signed between the Minister of Digital Development,
Innovation and Aerospace Industry of the Republic of Kazakhstan
BagdatMussin and the Global Head of Public Sector, Executive Vice
President for Strategic Growth of Mastercard Nicola Villa. As part
of this Agreement, Mastercard, with the advisory support of the
Ministry, intends to develop and implement a five-year digital
partnership program in Kazakhstan - the Kazakhstan Digital Country
Partnership," Trepka said.
As Regional CEO noted that cooperation will include initiatives
such as promoting the Kazakh GovTech model using the Mastercard
global network, expanding access to financial services through the
digitalization of payments in various areas (government payments,
agriculture, education, etc.), cooperation in the promotion and
development of IT exports, e-commerce, digitalization of SMEs,
fintech ecosystems, supporting Kazakhstan's Smart Cities program
with a key focus on the tourism and urban transport sectors,
promoting the creation of a secure and sustainable digital
ecosystem through cybersecurity and anti-fraud.
"The parties will pay particular attention to cooperation in
promoting projects related to digital and financial literacy of
various segments of the population. By concluding the Kazakhstan
Digital Country Partnership, we are ready to take our cooperation
with all stakeholders in Kazakhstan to a new, deeper and more
comprehensive level. From Almaty, we plan to develop business and
human capital in the banking sector for the entire Central Asian
region. This will benefit everyone - business, people, society, the
country as a whole. For companies and entrepreneurs, we bring
global advanced technologies and share our international
experience. To develop local specialists, we train personnel,
provide jobs, and raise professionals. We are also creating
numerous training programs for SMEs and students, who will also
work in various fields and open their own businesses tomorrow," he
said.
Trepka pointed out that ultimately, this will affect the
country's economy and GDP growth.
"Another recent example that I would like to mention is
cooperation with the municipalities of large cities in Kazakhstan.
For example, we recently agreed that Mastercard will implement
projects in the field of digital technologies with the mayor's
office of Almaty, the largest metropolis in Kazakhstan. We have
identified a number of areas for cooperation, including the
introduction of innovative solutions in the cashless payment
system, and we will also provide the mayor's office with access to
our digital platform Mastercard Tourism Insights. Almaty is the
most popular tourist destination in the country and access to our
platform will allow to analyze a lot of data, which will help when
making decisions for the development of the tourism industry:
create a behavioral profile of a tourist, evaluate his preferences
when choosing accommodations and objects of visit, monitor the
airport's congestion in dynamics and much more. This cooperation
will help accelerate the development of Almaty as a Smart City,
create a comfortable urban environment for both residents and
foreign guests, and expand the city's tourism potential," Regional
CEO said.
According to him, these are just a few recent examples of
Mastercard's work in Kazakhstan.
"I gave even more examples in an interview with your publication
in July of this year (read more here ). Therefore, we sincerely believe that our work
in Kazakhstan is very necessary and useful for everyone, and will
contribute to the formation of a more open, safe, efficient and
transparent environment for all participants of the economy," he
said.
Mastercard's transport solutions in
Kazakhstan
"Using our advanced technologies and global experience, we have
implemented many projects in cooperation with transport companies,
national carriers, in the field of public transport throughout
Kazakhstan. Having started work on introducing cashless payment in
public transport in 2015, when the world's 5th contactless cashless
fare payment system was launched in Almaty subway, Mastercard
continues to implement solutions for public transport. In
Kazakhstani cities, in collaboration with local partners, projects
are being launched to pay for travel with bank cards," he said.
Trepka noted that Mstercard launches various promotions for
cardholders to support cashless payment in public transport.
"For example, together with the Almaty Subway, we announced that
by the end of 2023, when paying with smartphones and smart watches
that support Google Pay, Apple Pay or Samsung Pay, to which a
Mastercard is linked, the fare will cost only 5 tenge, instead of
100 tenge. Such promotions provide customers with the opportunity
not only to appreciate the convenience, speed and security of
payments through mobile devices with Mastercard cards, but also to
significantly save on daily expenses," he noted.
Support for women's small and micro businesses in
Kazakhstan
In addition, as Regional CEO noted, in collaboration with the
Mastercard Center for Inclusive Growth, it is planned to support
small and micro businesses created by women in Kazakhstan.
"We are also continually expanding access to our Girls4Tech STEM
(Science, Technology, Engineering, Maths) curriculum for 8-12 year
olds through a range of new and creative online educational
resources. This program helps teachers and parents inspire students
to study and master new areas of knowledge in Spanish, Arabic,
Polish, French and other languages. Mastercard supported
translation of educational materials into Kazakh language and now
on the website Girls4Tech, which was launched in collaboration with
the educational company Scholastic, parents and teachers can
download lessons in Kazakh language," he said.
Trepka added that ongoing Mastercard's research reveals the
challenges women entrepreneurs face and the key issues that need to
be addressed to advance women's role in sustainable and inclusive
economies.
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