Booming Fintech Market in Kazakhstan Sees Quadruple Growth in Startups
Kazakhstan’s Fintech Sector Booming with Rapid Growth and Innovation
ASTANA—The fintech sector in Kazakhstan is experiencing rapid growth, with the number of fintech startups increasing from around 50 in 2018 to 200 in 2024, according to a recent report on the fintech market. The report, prepared by RISE Research, the National Payment Corporation of Kazakhstan, Mastercard, and Tarlan Payments, highlights the thriving fintech sector in the country.
Banks are playing a critical role in driving this growth, especially with the absence of legacy banking systems that allow for rapid technological transformation. Major banks are investing heavily in payment infrastructure to enhance service efficiency and reliability. The proactive collaboration between banks and government e-systems is integrating various services, furthering digital transformation for Kazakh citizens.
The rising consumer demand for digital financial services, including mobile banking and e-wallets, is propelling the market forward. The report shows a significant increase in online banking usage and fintech-related services and products. In 2023, the number of active online banking users in Kazakhstan reached 23.1 million, a substantial increase driven by technological advancements, regulatory support, market competition, and greater adoption of internet and cashless payments.
Cashless transactions have also seen a tremendous rise in Kazakhstan, thanks to efforts by the government, financial institutions, and a tech-savvy population that embraces digital payments. The National Bank of Kazakhstan reported a significant increase in the volume of transactions using payment cards, reaching 15.4 trillion tenge (US$32.5 billion) in May 2024.
Kazakhstan leads globally in cashless transactions development, with non-cash transactions now accounting for 89% of retail turnover. The country has witnessed triple growth in tokenized transactions between 2021 and 2023, highlighting the increasing shift towards digital payments.
The fintech market in Kazakhstan is projected to continue growing, with a double-digit compound annual growth rate expected between 2022 and 2027. The country’s payment landscape is undergoing transformation driven by factors such as favorable demographics, growing digital readiness, increased e-commerce, enhanced banking accessibility, and infrastructural advancements.
Overall, analysts forecast continued growth across all fintech-related markets in Kazakhstan, with fintech emerging as the leading investment category in venture capital deals. The country aims to become a regional leader in fintech development, with a focus on innovative solutions such as artificial intelligence, govtech-fintech synergy, digital products for SMEs, and central bank digital currencies.
It is essential for market players to not only observe current trends but actively engage with them to stay ahead in the dynamic fintech market. Collaboration between banks, fintech startups, and the integration of govtech and AI tools into processes are crucial for driving innovation and maintaining competitiveness in the sector.
