BAKU, Azerbaijan, December 2. Mastercard is
deepening its collaboration with Kazakhstan, specializing in digital
transformation, tourism growth, and cybersecurity, stated
Sanzhar Zhamalov, Normal Director of Mastercard in Kazakhstan and
Central Asia, in an interview with Development.
Zhamalov highlighted the corporate’s latest initiatives within the
area, together with signing a Home Card Program (DCP) settlement
in 2023. “We’re actively working in a number of areas without delay,” he
famous. “Mastercard helps GovTech by collaborating in critiques,
sharing greatest practices, and organizing boards and workshops. Our
experience is extremely valued in areas akin to open banking and
blockchain challenge growth”.
Mastercard is implementing superior cybersecurity options in
Kazakhstan, together with the Threat Recon platform. “International options
like these are essential for guaranteeing the safety and stability of
the nation’s rising digital ecosystem,” stated Zhamalov.
The corporate can be a key associate in selling tourism. “We’ve
offered Kazakh Tourism with entry to the Mastercard Tourism
Innovation Hub to create options for the trade and share
experience,” Zhamalov defined. This yr, Mastercard performed two
grasp courses with the Go to Almaty Bureau, leveraging knowledge from
the Mastercard Tourism Insights Platform.
“Almaty attracts curiosity from almost 30% of these looking for
vacationer details about Central Asia. Round 20% of holiday makers to
town discover Shymbulak, a well known ski resort. Insights like
these assist our companions develop methods to draw vacationers,” he
added.
Beneath the DCP program, Mastercard is increasing its consulting
providers in Kazakhstan. “We’ve established a regional advisory hub
for the CIS and Jap Europe in Almaty and considerably
elevated our staff, tripling the variety of consultants inside a
yr,” Zhamalov stated.
“Mastercard absolutely helps Kazakhstan’s ambition to steer Central
Asia in digitalization,” Zhamalov emphasised. “Our focus is on
fostering the digital financial system and advancing fintech within the
area”.
Digital tenge rollout
He additional famous that Mastercard is taking part in a key function within the
growth of Kazakhstan’s digital tenge challenge, which is
presently within the testing part and anticipated to be absolutely carried out
by the top of 2025.
“The digital tenge challenge is presently working in check mode,
specializing in public procurement and social funds,” Zhamalov
defined. “The three-stage implementation of the challenge is about to
be accomplished by late 2025, at which level it is going to be absolutely
launched, paving the best way for brand new monetary providers”.
Zhamalov emphasised that the digital tenge serves as a bridge
between conventional finance and the rising digital asset
ecosystem. “Its implementation opens new alternatives for focused
social funds, improves the effectivity of public procurement,
optimizes cross-border funds, and allows programmable
funds,” he stated.
Mastercard has been actively concerned within the digital tenge
initiative, reflecting its rising curiosity in cryptocurrency
developments. “Kazakhstani laws permits for piloting and testing
crypto tasks, and a few native banks have already taken benefit
of this framework,” Zhamalov famous.
In November 2023, the Eurasian Financial institution unveiled the primary debit
card in digital tenge, issued on the Mastercard platform, throughout
the Financiers Congress of Kazakhstan. The inaugural transaction
was made by the Chairman of the Nationwide Fee Company of
Kazakhstan. “The funds within the digital tenge account had been immediately
transformed into conventional tenge, enabling funds anyplace within the
world,” Zhamalov stated, highlighting the seamless integration of the
system.
Earlier, Mastercard partnered with Eurasian Financial institution to facilitate
the primary crypto-to-fiat transaction in Kazakhstan. The digital
tenge debit card issued by Eurasian Financial institution marked a milestone because the
first Central Financial institution Digital Foreign money (CBDC) card in Eurasia.
“We’re proud to have collaborated with the Nationwide Financial institution of
Kazakhstan, the Nationwide Fee Company, and Eurasian Financial institution on
this modern challenge,” Zhamalov stated. “It’s a wonderful instance
of public-private partnership and a major step ahead for
the digital financial system”.
Zhamalov additionally highlighted the sensible advantages of the digital
tenge card for each shoppers and companies. “The CBDC debit card
permits cardholders to proceed making purchases at over 100 million
Mastercard acceptance factors worldwide, guaranteeing confidence within the
safety of their funds, backed by the worldwide fee
system,” he defined. “For companies, the cardboard presents larger
fee flexibility with out requiring pricey infrastructure
upgrades”.
Assist for digitalization of SMEs in
Kazakhstan
Mastercard is prioritizing the digitalization of small and
medium-sized enterprises (SMEs) globally, together with in Kazakhstan,
as a part of its complete method to supporting companies,
stated Zhamalov.
“Small and medium-sized companies in lots of nations kind a
massive a part of the nationwide financial system. Globally, Mastercard has
acknowledged the assist of digitalization of small and medium-sized
companies as considered one of its precedence duties and has developed a
complete method on this space,” Zhamalov acknowledged.
He identified that in Kazakhstan, enterprise house owners can apply for
Mastercard enterprise playing cards by means of 9 native banks, together with Altyn
Financial institution, Halyk Financial institution, Kaspi, and others. “These playing cards allow corporations
to pay for items and providers, withdraw money, high up balances, and
handle a variety of enterprise bills, akin to gas, workplace
tools, and on-line providers,” Zhamalov stated.
Mastercard enterprise playing cards additionally provide options tailor-made to
firm wants, permitting CEOs and accountants to set limits and
restrictions and distribute playing cards to workers. “A enterprise card
permits, on the one hand, to manage all transactions and, on the
different hand, to extend the transparency of the corporate’s work for
regulatory authorities,” he added.
Along with comfort, Mastercard enterprise card holders
take pleasure in quite a few advantages by means of the Straightforward Financial savings Specials platform.
“This platform, obtainable in Kazakh and Russian, offers entry to
greater than 100 worldwide reductions and several other native
promotions,” Zhamalov stated. International companions embody Google, Adobe,
Meta, and Qatar Airways, whereas native promotions function Rixos
Aktau, Yandex Direct, and others.
Mastercard can be collaborating with the Ministry of Commerce to
improve e-commerce capabilities for SMEs. “We’ve got been growing
the College of e-Commerce for SMEs for a number of years. Right here,
companies can discover ways to create a web site, combine on-line
funds, and promote providers on-line,” Zhamalov defined. He
famous that this system has not too long ago expanded to Uzbekistan.
Digital finance growth in
Kazakhstan
Noting that Kazakhstan is main the best way in digital finance
throughout the CIS and Europe, Zhamalov spoke in regards to the findings of a
large-scale fintech examine performed with RISE Analysis, the
Nationwide Fee Company of Kazakhstan, and Tarlan Funds,
which surveyed over 100 corporations.
“The share of non-cash funds in Kazakhstan reached a report
89% in 2024,” Zhamalov acknowledged. “Moreover, the variety of energetic
on-line banking customers elevated 4.6 occasions, from 5 million to 23.1
million, between 2019 and 2023”.
The expansion of the fintech sector is fueled by important
enterprise investments, which accounted for 40% of all enterprise funding
in Kazakhstan in 2023. “The variety of fintech startups has reached
200, with many specializing in specialised areas akin to crypto
exchanges, eKYC, anti-fraud programs, and digital lending,” he
defined.
Key developments shaping Kazakhstan’s fintech market embody the
integration of AI, the synergy between fintech and GovTech, new
monetary merchandise for SMEs, BNPL providers, and the rise of digital
monetary belongings.
Zhamalov emphasised that these developments sign Kazakhstan’s
rising maturity in fintech and its world management in digital
finance innovation.
Cashless fee milestones
Additional talking, Zhamalov famous that, globally, cashless
transactions are increasing in numerous codecs. “As an example,
cell funds dominate e-commerce in China, whereas digital wallets
lead in Europe, accounting for 49% of world e-commerce turnover.
At bodily factors of sale, nevertheless, conventional card funds
nonetheless maintain the bulk share at 51%,” stated Zhamalov.
He emphasised Kazakhstan’s important progress in cashless
transactions, noting a twentyfold enhance over the previous 5
years. “Every resident of Kazakhstan, on common, holds playing cards from
a minimum of two banks. Nonetheless, there stays room for additional
personalization of economic services and products and enhancements
in person expertise,” the final director stated.
Digital-first options, akin to immediate on-line card issuance,
seamless funds, and accessible credit score and installment choices,
are anticipated to drive the market’s progress. “Segmentation and
well-designed product choices are important. As an example,
premium purchasers in Kazakhstan now take pleasure in bundle offers that go
past the cardboard itself, together with airport lounge entry, fast-track
providers, insurance coverage, and cashback packages,” Zhamalov
defined.
He additionally highlighted improvements like eco-friendly playing cards supplied
by Eurasian Financial institution, enterprise playing cards with installment choices launched
by Financial institution CenterCredit, and a card supporting the Aral Sea
conservation initiative issued in collaboration with Freedom
Financial institution.
Trying forward, Zhamalov pointed to the significance of person
expertise, safety, and belief in know-how. “AI-driven tasks,
cryptocurrencies, open banking, and blockchain are reworking
fee strategies. The event of regulatory frameworks will play
an important function, and Mastercard is dedicated to contributing to
these efforts,” he acknowledged.
Cross-border funds stay a precedence as the worldwide financial system
turns into more and more interconnected. “Individuals conduct enterprise,
store, and switch cash throughout nations. Cross-border funds
and transfers are a key focus for us, and we’re planning new
initiatives on this space subsequent yr,” Zhamalov famous.
Mastercard’s new cybersecurity know-how in
Kazakhstan
Mastercard has made substantial investments in enhancing
cybersecurity, Zhamalov shared. “Over the previous 5 years,
Mastercard has invested $7 billion in strengthening cybersecurity,”
he stated, emphasizing the corporate’s dedication to safeguarding
buyer and cardholder transactions.
Certainly one of Mastercard’s key options, RiskRecon, was launched in
Kazakhstan this yr. Zhamalov described it as a number one know-how
in synthetic intelligence and knowledge evaluation. “RiskRecon is a cloud
service that automates the evaluation of cybersecurity for
organizations and their counterparties,” he defined. The system
evaluates roughly 40 parameters, enabling corporations to
proactively handle cyber dangers and defend important mental
property and buyer knowledge.
RiskRecon is obtainable to a variety of companies in
Kazakhstan, together with banks, on-line shops, and retailers. “With
the assistance of superior scanning and evaluation applied sciences,
organizations can higher reply to oblique cybersecurity threats
of their enterprise ecosystems,” Zhamalov added. Firms utilizing the
service additionally achieve entry to Mastercard’s coaching webinars to
improve their cybersecurity data.
Zhamalov identified that cybercrime is a urgent world challenge,
with threats changing into more and more refined. “The evolution of
malware, enhance in third-party dangers, social engineering, and
cybercrimes for rent have gotten commonplace for people and
corporations around the globe,” he stated. He famous that the common
world value of an information breach in 2023 reached $4.45 million, marking
a 15-percent enhance in comparison with the earlier three years.
Discussing cybersecurity readiness, Zhamalov highlighted
variations throughout industries. “Banks typically have extra sturdy
cybersecurity packages and usually tend to rent extremely expert
professionals in comparison with sectors like schooling or charitable
organizations,” he famous. In Kazakhstan, Mastercard assessed 19
banks and located their common cybersecurity rating to be 7.5 out of
10, barely beneath the worldwide banking trade’s common of
8.2.
Mastercard’s initiatives replicate its dedication to addressing
the rising complexity of cyber threats. “Cybersecurity stays at
the cornerstone of our enterprise, and we’re proud to deliver
modern options like RiskRecon to Kazakhstan to assist
corporations in constructing resilience towards cyber dangers,” he stated.
Mastercard eyes inexperienced initiatives in Central
Asia
Zhamalov outlined the corporate’s plans to deepen its regional
engagement and speed up enterprise growth within the space.
“We’ve got essentially modified our method to enterprise
growth in Kazakhstan and Central Asia by making a hub in
Almaty,” stated Zhamalov. “My appointment is carefully tied to the
localization of Mastercard’s enterprise in Kazakhstan, and considered one of my
key duties is to construct a neighborhood workplace that can assist develop our
enterprise within the area. We’re recruiting extra native specialists
who will play a pivotal function in sustaining Mastercard’s operations
in Central Asia and the CIS from Almaty. The variety of workers is
steadily rising, and on the identical time, we’re present process a significant
transformation of our operational actions”.
Zhamalov emphasised that Kazakhstan is a precedence marketplace for
Mastercard, highlighting the nation’s sturdy cashless fee
infrastructure and its younger, tech-savvy inhabitants. “Kazakhstan
has a excessive proportion of younger people who find themselves notably
receptive to new applied sciences, and Almaty boasts high-quality human
capital – a big pool of younger professionals with worldwide
schooling and expertise,” he defined. “We additionally see the
authorities’s sturdy want to develop the digital financial system, and this
aligns completely with our objectives. We’re working collectively to appreciate
this imaginative and prescient”.
Trying again on the evolution of funding developments within the
nation, Zhamalov famous a major shift in focus. “10-15 years
in the past, overseas traders had been primarily excited by resource-based
sectors like oil, fuel, and metals. Now, we’re in a brand new period of
transformation, and traders are more and more trying to
non-resource corporations. Kazakh fintech corporations, for instance, are
gaining worldwide consideration and increasing into overseas
exchanges. By making a digital financial system, Kazakhstan is constructing a
new platform for enterprise progress and attracting world traders.
Mastercard’s world experience in supporting and consulting native
companies is in excessive demand,” Zhamalov stated.
Mastercard can be setting its sights on increasing its efforts
in environmental, social, and governance (ESG) initiatives. “We’re
focusing extra on ESG within the area, as environmental safety and
accountable consumption are key priorities for our firm,” stated
Zhamalov. “We’ll proceed to implement packages like Digital
First or Digital Solely playing cards, which cut back using plastic. In
Kazakhstan, we’re already issuing eco-cards constructed from recycled
plastic in collaboration with our associate, Eurasian Financial institution, which has
additionally turn out to be the primary Kazakhstani firm to affix Mastercard’s
Priceless Planet Coalition”.
The official added that Mastercard can be engaged on bringing
extra Kazakhstani banks into the Priceless Planet Coalition, a
world initiative geared toward combating local weather change by means of
collaboration with the Conservation Worldwide Fund and the
World Sources Institute. “We’ll quickly announce that one other
Kazakhstani financial institution has joined the Priceless Planet Coalition. As we
see the rising unfavourable influence of local weather change in our area, we
imagine it’s important to concentrate on eco-friendly tasks,” he
stated.
Trying ahead, he expressed confidence in Mastercard’s future
in Central Asia. “Our fee, know-how, and environmental
initiatives are in nice demand throughout Central Asia. There’s
glorious potential for Mastercard to function and collaborate right here,
serving to to develop the cashless financial system and selling these
nations on the worldwide stage. I’m very optimistic in regards to the
future,” Sanzhar Zhamalov concluded.