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.