BAKU, Azerbaijan, January 8. Visa is proposing novel ideas and technologies for the development of non-cash payments in Kazakhstan, Vice President, Regional Manager Central Asia and Azerbaijan at Visa Cristina Doros told Trend in an exclusive interview.
Visa's innovative solutions in the financial sector of Kazakhstan
"Visa has been present in Kazakhstan for over 30 years. Our combined efforts with the government, regulators, and financial institutions have resulted in important accomplishments in the country's digital economy development," she said.
Doros noted that several major technologies were launched in Kazakhstan over the past year.
"In collaboration with Freedom Bank, Visa has introduced B2B [business-to-business] Connect technology for cross-border non-card transfers of legal entities for the first time in Central Asia. This solution is based on blockchain technology. B2B Connect allows for non-card cross-border payments to be made quickly, securely, and with lower operational costs," she explained.
"Additionally, in partnership with RBK Bank, we launched Request to Pay technology based on the Visa Direct platform, allowing joint bill payments or requesting funds transfers from another bank customer for the first time in the world," Doros pointed out.
The vice president of Visa emphasized that Visa Tap to Phone technology has been in operation in the country since 2020.
"It enables business owners to use an Android-based smartphone equipped with Near Field Communication (NFC) as a payment terminal. Business owners merely need to install a particular app on their cellphones to accept payments from cards or other devices. Kenya is a world leader in the development of this technology," she said.
Another significant project implemented in Kazakhstan, according to her, was the launch of money transfers via phone number between different banks through the Visa Direct platform in 2022.
"We have made the transfer process even more convenient, providing the ability to send money between different banks in seconds. Kazakhstan is experiencing a boom in the development of digital payments, and we are pleased to be part of this process, offering people the opportunity to conduct digital transactions quickly, conveniently, and most importantly, securely," she said.
Doros also mentioned the launch of the world's first Visa cards linked to the digital tenge.
"This is a major and important step in the development of Kazakhstan's cashless economy. Visa works closely with clients and partners to ensure the best user experience when using new forms of money, and we are delighted to be part of the launch of the first-ever CBDC [Central Bank Digital Currency] card," the vice president noted. "We express our immense gratitude to the National Payment Corporation, Halyk Bank, Center Credit Bank, and Altyn Bank for their collaboration and aim to continue working towards advancing the future of digital payments."
"New digital tenge CBDC cards based on Visa can be accepted at any point that accepts Visa cards. In the initial phase of the digital tenge implementation, CBDC cards will be available to National Payment Corporation employees," she added.
Development of non-cash payments
"In Central Asia, and particularly in Kazakhstan, we are witnessing a surge in the growth of non-cash payments of all types and forms. This is attributable to the financial sector's excellent quality and quick development. We collaborate with the majority of the country's banks to introduce innovative solutions and technology that make payments even more convenient, fast, and secure," she said.
According to Cristina Doros, Kazakhstan is open to innovations in the development of financial technologies. The country's banks are ready to introduce payment innovations, and the population is open to innovation and quickly begins to use such services.
"I'd also like to highlight Kazakhstan's excellent level of professionals. For many years, the Visa representative office has been in the country. For many years, the corporation has employed Kazakhstanis who are accountable not only for Kazakhstan or the countries of Central Asia but also for a broad region of Central and Eastern Europe, the Middle East, and Africa. And the number of Kazakh specialists contributing to the development of this vast territory grows by the year. This is also why we will stay the market leader," Cristina Doros noted.
Transport solutions for Visa in Kazakhstan
According to the Vice President, last year, Visa conducted the 'The Future of Urban Mobility' annual study dedicated to the use of public transport.
"According to its results, 89 percent of surveyed Kazakhs expected the availability of contactless payment methods in public transport, and 54 percent stated a preference for contactless payment for their commute," she said.
Doros noted that public transport has always been an essential part of people's lives, with many spending a significant amount of time commuting every day.
"Therefore, not long ago, we were pleased to support the launch of the innovative Face Pay project by Halyk Bank at two metro stations in Almaty. We believe that this service will contribute to even wider adoption of cashless payments among Kazakhs and make their public transport journeys more comfortable and secure," added the vice president.
Visa's support for the development of women's entrepreneurship in Kazakhstan
On measures to support women in business, Cristina Doros emphasized the She's Next, Empowered by Visa global initiative to support women's entrepreneurship, launched in Kazakhstan and Central Asia in 2019.
"According to the findings of the initiative's first wave, there was a lot of interest from women entrepreneurs in Central Asia—over 2,500 women engaged in educational webinars. As a result, we've already launched the second wave of the She's Next, Empowered by Visa program in Kazakhstan and Central Asia in 2022, with the slogan "Successful business is balance!" she said.
According to the regional manager, more than 6,000 Central Asian businesswomen participated in the second wave of the initiative.
"The women entrepreneurs attended a series of instructional seminars from renowned experts on topics such as effective business, time management, and establishing a work-life balance. The marathon saw fifteen businesswomen compete, with three winners receiving funding to help them grow their own businesses, said Cristina Doros.
She mentioned that one of the important achievements of She's Next, Empowered by Visa in 2022 was the creation and release of the world's first co-branded card, She's Next, Empowered by Visa, together with the partner of the second wave of the initiative, Halyk Bank (a Kazakh commercial savings bank). According to her, the card has a unique design with the She's Next, Empowered by Visa logo, as well as special privileges available only to the participants of the second wave of the initiative.
"To develop and expand cooperation in the field of digitalization of the economy, increase the digital potential of entrepreneurs, and support women's entrepreneurship in Kazakhstan, Visa signed a memorandum of cooperation in the field of women's entrepreneurship with the Ministry of National Economy of the Republic of Kazakhstan and the National Association of Women Entrepreneurs of Kazakhstan (ASMAR). Within the framework of the signed memorandum, we plan to implement important projects in a range of areas, including accelerating digital transformation and improving digital and financial literacy," Doros added.