MARCH 27 2014 (The Conway Bulletin) — Although electronic transactions are growing, Kazakhstan is still a predominantly cash-based society, analysis has shown.

Last year the number of credit and debit cards in circulation grew by 20% in Kazakhstan but the amount of electronic transactions by only 9%.

It feels as if consumers in Kazakhstan still have a mental aversion to using cashless payment models.

Payday for government workers in Kazakhstan is on the 10th day of each month. That’s when the tell-tale queues of people converting their electronic salaries into hard cash form outside branches of Halyk Bank.

It’s also a symbolic illustration of the problem that the Kazakh Central Bank needs to address.

Switching to a more cashless society is important as it is a mark of development. An increased number of electronic transactions in an economy also means that more taxes are paid and the financial system is, generally, more robust.

Alisher, a worker at Eurasia Bank in Almaty, puzzled over the problem.

“Our cards do not carry charges for electronic payments, yet customers refrain from using them,” he said. “Instead they pay withdrawal fees or simply forget that the piece of plastic they are carrying in their wallet is actually an instrument that could save them money and time.”

The problem, though, is not purely the mentality of the consumers. Many shops in Kazakhstan still do not have the right equipment. This is changing, though, and from July 1, new laws will mean that all shops will have to carry card reading machines.

ENDS
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(News report from Issue No. 178, published on April 2 2014)