(MENAFN- Trend News Agency)
BAKU, Azerbaijan, December 2. Mastercard is
deepening its collaboration with Kazakhstan, focusing on digital
transformation, tourism development, and cybersecurity, said
Sanzhar Zhamalov, General Director of Mastercard in Kazakhstan and
Central Asia, in an interview with Trend .
Zhamalov highlighted the company's recent initiatives in the
region, including signing a Domestic Card Program (DCP) agreement
in 2023. "We are actively working in several areas at once," he
noted. "Mastercard supports GovTech by participating in reviews,
sharing best practices, and organizing forums and workshops. Our
expertise is highly valued in areas such as open banking and
blockchain project development".
Mastercard is implementing advanced cybersecurity solutions in
Kazakhstan, including the Risk Recon platform.“Global solutions
like these are crucial for ensuring the security and stability of
the country's growing digital ecosystem," said Zhamalov.
The company is also a key partner in promoting tourism. "We've
provided Kazakh Tourism with access to the Mastercard Tourism
Innovation Hub to create solutions for the industry and share
expertise," Zhamalov explained. This year, Mastercard conducted two
master classes with the Visit Almaty Bureau, leveraging data from
the Mastercard Tourism Insights Platform.
"Almaty attracts interest from nearly 30% of those searching for
tourist information about Central Asia. Around 20% of visitors to
the city explore Shymbulak, a well-known ski resort. Insights like
these help our partners develop strategies to attract tourists," he
added.
Under the DCP program, Mastercard is expanding its consulting
services in Kazakhstan. "We've established a regional advisory hub
for the CIS and Eastern Europe in Almaty and significantly
increased our team, tripling the number of consultants within a
year," Zhamalov said.
"Mastercard fully supports Kazakhstan's ambition to lead Central
Asia in digitalization," Zhamalov emphasized. "Our focus is on
fostering the digital economy and advancing fintech in the
region".
Digital tenge rollout
He further noted that Mastercard is playing a key role in the
development of Kazakhstan's digital tenge project, which is
currently in the testing phase and expected to be fully implemented
by the end of 2025.
"The digital tenge project is currently operating in test mode,
focusing on public procurement and social payments," Zhamalov
explained. "The three-stage implementation of the project is set to
be completed by late 2025, at which point it will be fully
launched, paving the way for new financial services".
Zhamalov emphasized that the digital tenge serves as a bridge
between traditional finance and the emerging digital asset
ecosystem. "Its implementation opens new opportunities for targeted
social payments, improves the efficiency of public procurement,
optimizes cross-border payments, and enables programmable
payments," he said.
Mastercard has been actively involved in the digital tenge
initiative, reflecting its growing interest in cryptocurrency
trends. "Kazakhstani legislation allows for piloting and testing
crypto projects, and some local banks have already taken advantage
of this framework," Zhamalov noted.
In November 2023, the Eurasian Bank unveiled the first debit
card in digital tenge, issued on the Mastercard platform, during
the Financiers Congress of Kazakhstan. The inaugural transaction
was made by the Chairman of the National Payment Corporation of
Kazakhstan. "The funds in the digital tenge account were instantly
converted into traditional tenge, enabling payments anywhere in the
world," Zhamalov said, highlighting the seamless integration of the
system.
Earlier, Mastercard partnered with Eurasian Bank to facilitate
the first crypto-to-fiat transaction in Kazakhstan. The digital
tenge debit card issued by Eurasian Bank marked a milestone as the
first Central Bank Digital Currency (CBDC) card in Eurasia.
"We are proud to have collaborated with the National Bank of
Kazakhstan, the National Payment Corporation, and Eurasian Bank on
this innovative project," Zhamalov said. "It's an excellent example
of public-private partnership and a significant step forward for
the digital economy".
Zhamalov also highlighted the practical benefits of the digital
tenge card for both consumers and businesses. "The CBDC debit card
allows cardholders to continue making purchases at over 100 million
Mastercard acceptance points worldwide, ensuring confidence in the
security of their payments, backed by the international payment
system," he explained. "For businesses, the card offers greater
payment flexibility without requiring costly infrastructure
upgrades".
Support for digitalization of SMEs in
Kazakhstan
Mastercard is prioritizing the digitalization of small and
medium-sized enterprises (SMEs) globally, including in Kazakhstan,
as part of its comprehensive approach to supporting businesses,
said Zhamalov.
"Small and medium-sized businesses in many countries form a
large part of the national economy. Globally, Mastercard has
recognized the support of digitalization of small and medium-sized
businesses as one of its priority tasks and has developed a
comprehensive approach in this area," Zhamalov stated.
He pointed out that in Kazakhstan, business owners can apply for
Mastercard business cards through nine local banks, including Altyn
Bank, Halyk Bank, Kaspi, and others. "These cards enable companies
to pay for goods and services, withdraw cash, top up balances, and
manage a wide range of business expenses, such as fuel, office
equipment, and online services," Zhamalov said.
Mastercard business cards also offer features tailored to
company needs, allowing CEOs and accountants to set limits and
restrictions and distribute cards to employees. "A business card
allows, on the one hand, to control all transactions and, on the
other hand, to increase the transparency of the company's work for
regulatory authorities," he added.
In addition to convenience, Mastercard business card holders
enjoy numerous benefits through the Easy Savings Specials platform.
"This platform, available in Kazakh and Russian, provides access to
more than a hundred international discounts and several local
promotions," Zhamalov said. Global partners include Google, Adobe,
Meta, and Qatar Airways, while local promotions feature Rixos
Aktau, Yandex Direct, and others.
Mastercard is also collaborating with the Ministry of Trade to
enhance e-commerce capabilities for SMEs. "We have been developing
the School of e-Commerce for SMEs for several years. Here,
businesses can learn how to create a website, integrate online
payments, and promote services online," Zhamalov explained. He
noted that the program has recently expanded to Uzbekistan.
Digital finance development in
Kazakhstan
Noting that Kazakhstan is leading the way in digital finance
within the CIS and Europe, Zhamalov spoke about the findings of a
large-scale fintech study conducted with RISE Research, the
National Payment Corporation of Kazakhstan, and Tarlan Payments,
which surveyed over 100 companies.
"The share of non-cash payments in Kazakhstan reached a record
89% in 2024," Zhamalov stated. "Additionally, the number of active
online banking users increased 4.6 times, from 5 million to 23.1
million, between 2019 and 2023".
The growth of the fintech sector is fueled by significant
venture investments, which accounted for 40% of all venture funding
in Kazakhstan in 2023. "The number of fintech startups has reached
200, with many focusing on specialized areas such as crypto
exchanges, eKYC, anti-fraud systems, and digital lending," he
explained.
Key trends shaping Kazakhstan's fintech market include the
integration of AI, the synergy between fintech and GovTech, new
financial products for SMEs, BNPL services, and the rise of digital
financial assets.
Zhamalov emphasized that these developments signal Kazakhstan's
growing maturity in fintech and its global leadership in digital
finance innovation.
Cashless payment milestones
Further speaking, Zhamalov noted that, globally, cashless
transactions are expanding in various formats. "For instance,
mobile payments dominate e-commerce in China, while digital wallets
lead in Europe, accounting for 49% of global e-commerce turnover.
At physical points of sale, however, traditional card payments
still hold the majority share at 51%," said Zhamalov.
He emphasized Kazakhstan's significant progress in cashless
transactions, noting a twentyfold increase over the past five
years. "Each resident of Kazakhstan, on average, holds cards from
at least two banks. However, there remains room for further
personalization of financial products and services and improvements
in user experience," the general director said.
Digital-first solutions, such as instant online card issuance,
seamless payments, and accessible credit and installment options,
are expected to drive the market's growth. "Segmentation and
well-designed product offerings are essential. For instance,
premium clients in Kazakhstan now enjoy package deals that go
beyond the card itself, including airport lounge access, fast-track
services, insurance, and cashback programs," Zhamalov
explained.
He also highlighted innovations like eco-friendly cards offered
by Eurasian Bank, business cards with installment options launched
by Bank CenterCredit, and a card supporting the Aral Sea
conservation initiative issued in collaboration with Freedom
Bank.
Looking ahead, Zhamalov pointed to the importance of user
experience, security, and trust in technology. "AI-driven projects,
cryptocurrencies, open banking, and blockchain are transforming
payment methods. The development of regulatory frameworks will play
a crucial role, and Mastercard is committed to contributing to
these efforts," he stated.
Cross-border payments remain a priority as the global economy
becomes increasingly interconnected. "People conduct business,
shop, and transfer money across countries. Cross-border payments
and transfers are a key focus for us, and we are planning new
initiatives in this area next year," Zhamalov noted.
Mastercard's new cybersecurity technology in
Kazakhstan
Mastercard has made substantial investments in enhancing
cybersecurity, Zhamalov shared. "Over the past five years,
Mastercard has invested $7 billion in strengthening cybersecurity,"
he said, emphasizing the company's commitment to safeguarding
customer and cardholder transactions.
One of Mastercard's key solutions, RiskRecon, was introduced in
Kazakhstan this year. Zhamalov described it as a leading technology
in artificial intelligence and data analysis. "RiskRecon is a cloud
service that automates the assessment of cybersecurity for
organizations and their counterparties," he explained. The system
evaluates approximately 40 parameters, enabling companies to
proactively manage cyber risks and protect critical intellectual
property and customer data.
RiskRecon is available to a wide range of businesses in
Kazakhstan, including banks, online stores, and retailers. "With
the help of advanced scanning and assessment technologies,
organizations can better respond to indirect cybersecurity threats
in their business ecosystems," Zhamalov added. Companies using the
service also gain access to Mastercard's training webinars to
enhance their cybersecurity knowledge.
Zhamalov pointed out that cybercrime is a pressing global issue,
with threats becoming increasingly sophisticated. "The evolution of
malware, increase in third-party risks, social engineering, and
cybercrimes for hire are becoming commonplace for individuals and
companies around the world," he said. He noted that the average
global cost of a data breach in 2023 reached $4.45 million, marking
a 15-percent increase compared to the previous three years.
Discussing cybersecurity readiness, Zhamalov highlighted
variations across industries. "Banks generally have more robust
cybersecurity programs and are more likely to hire highly skilled
professionals compared to sectors like education or charitable
organizations," he noted. In Kazakhstan, Mastercard assessed 19
banks and found their average cybersecurity score to be 7.5 out of
10, slightly below the global banking industry's average of
8.2.
Mastercard's initiatives reflect its commitment to addressing
the rising complexity of cyber threats. "Cybersecurity remains at
the cornerstone of our business, and we are proud to bring
innovative solutions like RiskRecon to Kazakhstan to support
companies in building resilience against cyber risks," he said.
Mastercard eyes green initiatives in Central
Asia
Zhamalov outlined the company's plans to deepen its regional
engagement and accelerate business development in the area.
"We have fundamentally changed our approach to business
development in Kazakhstan and Central Asia by creating a hub in
Almaty," said Zhamalov. "My appointment is closely tied to the
localization of Mastercard's business in Kazakhstan, and one of my
key tasks is to build a local office that will help expand our
business in the region. We are recruiting more local specialists
who will play a pivotal role in maintaining Mastercard's operations
in Central Asia and the CIS from Almaty. The number of employees is
steadily growing, and at the same time, we are undergoing a major
transformation of our operational activities".
Zhamalov emphasized that Kazakhstan is a priority market for
Mastercard, highlighting the country's robust cashless payment
infrastructure and its young, tech-savvy population. "Kazakhstan
has a high proportion of young people who are particularly
receptive to new technologies, and Almaty boasts high-quality human
capital – a large pool of young professionals with international
education and experience," he explained. "We also see the
government's strong desire to develop the digital economy, and this
aligns perfectly with our goals. We are working together to realize
this vision".
Looking back at the evolution of investment trends in the
country, Zhamalov noted a significant shift in focus. "10-15 years
ago, foreign investors were primarily interested in resource-based
sectors like oil, gas, and metals. Now, we are in a new era of
transformation, and investors are increasingly looking to
non-resource companies. Kazakh fintech companies, for example, are
gaining international attention and expanding into foreign
exchanges. By creating a digital economy, Kazakhstan is building a
new platform for business growth and attracting global investors.
Mastercard's global expertise in supporting and consulting local
businesses is in high demand," Zhamalov said.
Mastercard is also setting its sights on expanding its efforts
in environmental, social, and governance (ESG) initiatives. "We are
focusing more on ESG in the region, as environmental protection and
responsible consumption are key priorities for our company," said
Zhamalov. "We will continue to implement programs like Digital
First or Digital Only cards, which reduce the use of plastic. In
Kazakhstan, we are already issuing eco-cards made from recycled
plastic in collaboration with our partner, Eurasian Bank, which has
also become the first Kazakhstani company to join Mastercard's
Priceless Planet Coalition".
The official added that Mastercard is also working on bringing
more Kazakhstani banks into the Priceless Planet Coalition, a
global initiative aimed at combating climate change through
collaboration with the Conservation International Fund and the
World Resources Institute. "We will soon announce that another
Kazakhstani bank has joined the Priceless Planet Coalition. As we
see the growing negative impact of climate change in our region, we
believe it's essential to focus on eco-friendly projects," he
said.
Looking forward, he expressed confidence in Mastercard's future
in Central Asia. "Our payment, technology, and environmental
initiatives are in great demand across Central Asia. There is
excellent potential for Mastercard to operate and collaborate here,
helping to develop the cashless economy and promoting these
countries on the global stage. I am very optimistic about the
future," Sanzhar Zhamalov concluded.
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