Kazakh people more often turn to non-cash payments

Business Materials 6 May 2019 15:22 (UTC +04:00)

Baku, Azerbaijan, May 6


In March 2019, the sum of non-cash payments amounted to 777.2 billion tenge with an increase of 2.2 times compared to the same period of last year and with an increase of 25.9 percent compared to February 2019, Trend reports via Financial Institutions’ Association of Kazakhstan.

The ratio of non-cash payments to cash withdrawal at ATMs reached 65 percent in February 2019 (the 100 percent indicator means that the number of non-cash payments equals the number of cash withdrawals ATMs).

Furthermore, the percentage of non-cash transactions (both non-cash payments and cash withdrawals) out of the total volume of banking transactions increased up to 39 percent.

The average sum of non-cash payments decreased in March and amounted to 9,809 tenge (10,239 tenge in February), whereas the average sum of cash withdrawal equals 42,014 tenge (45,929 in February).

Some 60 percent of the non-cash payments made within the territory of Kazakhstan account for the online payments, whereas some 38 percent account for the POS terminal payments. Still, in the last 12 months the percentage of the POS terminal transactions decreased by 9 percent in the total volume of banking transactions.

“As of April 1, 2019, the issuing of cards is performed by 22 banks and Kazpost JSC. These organizations issue cards of international payment systems such as VISA International, MasterCard Worldwide, UnionPay International, American Express International and Diners Club International. Furthermore, banks of Kazakhstan issue cards of local payment systems such as Altyn Card of National Bank of Kazakhstan and local card of Citibank Kazakhstan,” the report said.

“By that date, some 24.4 million of payment cards were in the circulation, whereas the number of card owners amounted to 21.2 million people. Debit cards prove to be most popular, their percentage equals to 75.6 percent out of total volume of cards, whereas the total volume of credit cards amounts to 20.8 percent. Debit cards with credit limit and prepaid cards amount to 2 and 1.6 percent respectively," reads the report.

"In March 2019, the total sum of transactions using payment cards of Kazakh issuers amounted to 2,098.6 billion tenge (an increase of 47.1 percent compared to March 2018)," the statement said.

A number of transactions in March 2019 amounted to 111.8 million, which is an increase of 97.7 percent compared to March 2018. Furthermore, a number of non-cash payments increased 2.4 times and the increase of total sum of the non-cash payments equaled to 112.1 percent.

The major part of the non-cash payments accounts for POS terminal and online/mobile banking payments. The cash withdrawal was mostly performed through ATMs.