Mastercard enhances Kazakhstan’s cybersecurity and innovation - Sanzhar Zhamalov (Exclusive Interview)

[ad_1] BAKU, Azerbaijan, December 2. Mastercard is deepening its collaboration with Kazakhstan, specializing in digital transformation, tourism growth, and cybersecurity, stated Sanzhar Zhamalov, Common Director of Mastercard in Kazakhstan and Central Asia, in an interview with Development.

Zhamalov highlighted the corporate’s latest initiatives within the area, together with signing a Home Card Program (DCP) settlement in 2023. "We're actively working in a number of areas without delay," he famous. "Mastercard helps GovTech by taking part in opinions, sharing greatest practices, and organizing boards and workshops. Our experience is very valued in areas akin to open banking and blockchain undertaking growth".

Mastercard is implementing superior cybersecurity options in Kazakhstan, together with the Threat Recon platform. “International options like these are essential for making certain the safety and stability of the nation’s rising digital ecosystem," stated Zhamalov.

The corporate can also be a key companion in selling tourism. "We’ve offered Kazakh Tourism with entry to the Mastercard Tourism Innovation Hub to create options for the trade and share experience," Zhamalov defined. This 12 months, Mastercard performed two grasp lessons with the Go to Almaty Bureau, leveraging information from the Mastercard Tourism Insights Platform.

"Almaty attracts curiosity from almost 30% of these looking for vacationer details about Central Asia. Round 20% of tourists to town discover Shymbulak, a widely known ski resort. Insights like these assist our companions develop methods to draw vacationers," he added.

Beneath the DCP program, Mastercard is increasing its consulting providers in Kazakhstan. "We’ve established a regional advisory hub for the CIS and Japanese Europe in Almaty and considerably elevated our group, tripling the variety of consultants inside a 12 months," Zhamalov stated.

"Mastercard absolutely helps Kazakhstan’s ambition to guide Central Asia in digitalization," Zhamalov emphasised. "Our focus is on fostering the digital financial system and advancing fintech within the area".

Digital tenge rollout

He additional famous that Mastercard is enjoying a key position within the growth of Kazakhstan's digital tenge undertaking, which is at present within the testing section and anticipated to be absolutely carried out by the top of 2025.

"The digital tenge undertaking is at present working in take a look at mode, specializing in public procurement and social funds," Zhamalov defined. "The three-stage implementation of the undertaking is about to be accomplished by late 2025, at which level will probably be absolutely launched, paving the way in which for brand spanking new monetary providers".

Zhamalov emphasised that the digital tenge serves as a bridge between conventional finance and the rising digital asset ecosystem. "Its implementation opens new alternatives for focused social funds, improves the effectivity of public procurement, optimizes cross-border funds, and permits programmable funds," he stated.

Mastercard has been actively concerned within the digital tenge initiative, reflecting its rising curiosity in cryptocurrency developments. "Kazakhstani laws permits for piloting and testing crypto tasks, and a few native banks have already taken benefit of this framework," Zhamalov famous.

In November 2023, the Eurasian Financial institution unveiled the primary debit card in digital tenge, issued on the Mastercard platform, throughout the Financiers Congress of Kazakhstan. The inaugural transaction was made by the Chairman of the Nationwide Cost Company of Kazakhstan. "The funds within the digital tenge account had been immediately transformed into conventional tenge, enabling funds anyplace within the world," Zhamalov stated, highlighting the seamless integration of the system.

Earlier, Mastercard partnered with Eurasian Financial institution to facilitate the primary crypto-to-fiat transaction in Kazakhstan. The digital tenge debit card issued by Eurasian Financial institution marked a milestone because the first Central Financial institution Digital Foreign money (CBDC) card in Eurasia.

"We're proud to have collaborated with the Nationwide Financial institution of Kazakhstan, the Nationwide Cost Company, and Eurasian Financial institution on this progressive undertaking," Zhamalov stated. "It’s a wonderful instance of public-private partnership and a big step ahead for the digital financial system".

Zhamalov additionally highlighted the sensible advantages of the digital tenge card for each customers and companies. "The CBDC debit card permits cardholders to proceed making purchases at over 100 million Mastercard acceptance factors worldwide, making certain confidence within the safety of their funds, backed by the worldwide cost system," he defined. "For companies, the cardboard affords better cost flexibility with out requiring expensive infrastructure upgrades".

Help for digitalization of SMEs in Kazakhstan

Mastercard is prioritizing the digitalization of small and medium-sized enterprises (SMEs) globally, together with in Kazakhstan, as a part of its complete method to supporting companies, stated Zhamalov.

"Small and medium-sized companies in lots of international locations type a giant a part of the nationwide financial system. Globally, Mastercard has acknowledged the help of digitalization of small and medium-sized companies as considered one of its precedence duties and has developed a complete method on this space," Zhamalov acknowledged.

He identified that in Kazakhstan, enterprise homeowners can apply for Mastercard enterprise playing cards by way of 9 native banks, together with Altyn Financial institution, Halyk Financial institution, Kaspi, and others. "These playing cards allow firms to pay for items and providers, withdraw money, high up balances, and handle a variety of enterprise bills, akin to gas, workplace gear, and on-line providers," Zhamalov stated.

Mastercard enterprise playing cards additionally supply options tailor-made to firm wants, permitting CEOs and accountants to set limits and restrictions and distribute playing cards to staff. "A enterprise card permits, on the one hand, to manage all transactions and, on the different hand, to extend the transparency of the corporate's work for regulatory authorities," he added.

Along with comfort, Mastercard enterprise card holders get pleasure from quite a few advantages by way of the Straightforward Financial savings Specials platform. "This platform, obtainable in Kazakh and Russian, offers entry to greater than 100 worldwide reductions and several other native promotions," Zhamalov stated. International companions embrace Google, Adobe, Meta, and Qatar Airways, whereas native promotions function Rixos Aktau, Yandex Direct, and others.

Mastercard can also be collaborating with the Ministry of Commerce to improve e-commerce capabilities for SMEs. "We have now been growing the College of e-Commerce for SMEs for a number of years. Right here, companies can learn to create an internet site, combine on-line funds, and promote providers on-line," Zhamalov defined. He famous that this system has lately expanded to Uzbekistan.

Digital finance growth in Kazakhstan

Noting that Kazakhstan is main the way in which in digital finance inside the CIS and Europe, Zhamalov spoke concerning the findings of a large-scale fintech research performed with RISE Analysis, the Nationwide Cost Company of Kazakhstan, and Tarlan Funds, which surveyed over 100 firms.

"The share of non-cash funds in Kazakhstan reached a file 89% in 2024," Zhamalov acknowledged. "Moreover, the variety of lively on-line banking customers elevated 4.6 occasions, from 5 million to 23.1 million, between 2019 and 2023".

The expansion of the fintech sector is fueled by important enterprise investments, which accounted for 40% of all enterprise funding in Kazakhstan in 2023. "The variety of fintech startups has reached 200, with many specializing in specialised areas akin to crypto exchanges, eKYC, anti-fraud methods, and digital lending," he defined.

Key developments shaping Kazakhstan’s fintech market embrace the integration of AI, the synergy between fintech and GovTech, new monetary merchandise for SMEs, BNPL providers, and the rise of digital monetary belongings.

Zhamalov emphasised that these developments sign Kazakhstan’s rising maturity in fintech and its world management in digital finance innovation.

Cashless cost milestones

Additional talking, Zhamalov famous that, globally, cashless transactions are increasing in varied codecs. "For example, cellular funds dominate e-commerce in China, whereas digital wallets lead in Europe, accounting for 49% of worldwide e-commerce turnover. At bodily factors of sale, nevertheless, conventional card funds nonetheless maintain the bulk share at 51%," stated Zhamalov.

He emphasised Kazakhstan's important progress in cashless transactions, noting a twentyfold enhance over the previous 5 years. "Every resident of Kazakhstan, on common, holds playing cards from at the least two banks. Nevertheless, there stays room for additional personalization of monetary services and enhancements in consumer expertise," the overall director stated.

Digital-first options, akin to prompt on-line card issuance, seamless funds, and accessible credit score and installment choices, are anticipated to drive the market's development. "Segmentation and well-designed product choices are important. For example, premium purchasers in Kazakhstan now get pleasure from package deal offers that go past the cardboard itself, together with airport lounge entry, fast-track providers, insurance coverage, and cashback packages," Zhamalov defined.

He additionally highlighted improvements like eco-friendly playing cards provided by Eurasian Financial institution, enterprise playing cards with installment choices launched by Financial institution CenterCredit, and a card supporting the Aral Sea conservation initiative issued in collaboration with Freedom Financial institution.

Trying forward, Zhamalov pointed to the significance of consumer expertise, safety, and belief in know-how. "AI-driven tasks, cryptocurrencies, open banking, and blockchain are reworking cost strategies. The event of regulatory frameworks will play a vital position, and Mastercard is dedicated to contributing to these efforts," he acknowledged.

Cross-border funds stay a precedence as the worldwide financial system turns into more and more interconnected. "Individuals conduct enterprise, store, and switch cash throughout international locations. Cross-border funds and transfers are a key focus for us, and we're planning new initiatives on this space subsequent 12 months," Zhamalov famous.

Mastercard's new cybersecurity know-how in Kazakhstan

Mastercard has made substantial investments in enhancing cybersecurity, Zhamalov shared. "Over the previous 5 years, Mastercard has invested $7 billion in strengthening cybersecurity," he stated, emphasizing the corporate’s dedication to safeguarding buyer and cardholder transactions.

Certainly one of Mastercard's key options, RiskRecon, was launched in Kazakhstan this 12 months. Zhamalov described it as a number one know-how in synthetic intelligence and information evaluation. "RiskRecon is a cloud service that automates the evaluation of cybersecurity for organizations and their counterparties," he defined. The system evaluates roughly 40 parameters, enabling firms to proactively handle cyber dangers and shield crucial mental property and buyer information.

RiskRecon is accessible to a variety of companies in Kazakhstan, together with banks, on-line shops, and retailers. "With the assistance of superior scanning and evaluation applied sciences, organizations can higher reply to oblique cybersecurity threats of their enterprise ecosystems," Zhamalov added. Corporations utilizing the service additionally achieve entry to Mastercard’s coaching webinars to improve their cybersecurity information.

Zhamalov identified that cybercrime is a urgent world problem, with threats turning into more and more refined. "The evolution of malware, enhance in third-party dangers, social engineering, and cybercrimes for rent have gotten commonplace for people and firms all over the world," he stated. He famous that the common world price of an information breach in 2023 reached $4.45 million, marking a 15-percent enhance in comparison with the earlier three years.

Discussing cybersecurity readiness, Zhamalov highlighted variations throughout industries. "Banks typically have extra sturdy cybersecurity packages and usually tend to rent extremely expert professionals in comparison with sectors like training or charitable organizations," he famous. In Kazakhstan, Mastercard assessed 19 banks and located their common cybersecurity rating to be 7.5 out of 10, barely beneath the worldwide banking trade’s common of 8.2.

Mastercard's initiatives replicate its dedication to addressing the rising complexity of cyber threats. "Cybersecurity stays at the cornerstone of our enterprise, and we're proud to carry progressive options like RiskRecon to Kazakhstan to help firms in constructing resilience towards cyber dangers," he stated.

Mastercard eyes inexperienced initiatives in Central Asia

Zhamalov outlined the corporate’s plans to deepen its regional engagement and speed up enterprise growth within the space.

"We have now essentially modified our method to enterprise growth in Kazakhstan and Central Asia by making a hub in Almaty," stated Zhamalov. "My appointment is intently tied to the localization of Mastercard’s enterprise in Kazakhstan, and considered one of my key duties is to construct a neighborhood workplace that may assist develop our enterprise within the area. We're recruiting extra native specialists who will play a pivotal position in sustaining Mastercard’s operations in Central Asia and the CIS from Almaty. The variety of staff is steadily rising, and on the identical time, we're present process a significant transformation of our operational actions".

Zhamalov emphasised that Kazakhstan is a precedence marketplace for Mastercard, highlighting the nation’s sturdy cashless cost infrastructure and its younger, tech-savvy inhabitants. "Kazakhstan has a excessive proportion of younger people who find themselves significantly receptive to new applied sciences, and Almaty boasts high-quality human capital – a big pool of younger professionals with worldwide training and expertise," he defined. "We additionally see the authorities’s robust want to develop the digital financial system, and this aligns completely with our targets. We're working collectively to appreciate this imaginative and prescient".

Trying again on the evolution of funding developments within the nation, Zhamalov famous a big shift in focus. "10-15 years in the past, international buyers had been primarily all for resource-based sectors like oil, fuel, and metals. Now, we're in a brand new period of transformation, and buyers are more and more trying to non-resource firms. Kazakh fintech firms, for instance, are gaining worldwide consideration and increasing into international exchanges. By making a digital financial system, Kazakhstan is constructing a new platform for enterprise development and attracting world buyers. Mastercard’s world experience in supporting and consulting native companies is in excessive demand," Zhamalov stated.

Mastercard can also be setting its sights on increasing its efforts in environmental, social, and governance (ESG) initiatives. "We're focusing extra on ESG within the area, as environmental safety and accountable consumption are key priorities for our firm," stated Zhamalov. "We'll proceed to implement packages like Digital First or Digital Solely playing cards, which scale back the usage of plastic. In Kazakhstan, we're already issuing eco-cards produced from recycled plastic in collaboration with our companion, Eurasian Financial institution, which has additionally change into the primary Kazakhstani firm to hitch Mastercard’s Priceless Planet Coalition".

The official added that Mastercard can also be engaged on bringing extra Kazakhstani banks into the Priceless Planet Coalition, a world initiative aimed toward combating local weather change by way of collaboration with the Conservation Worldwide Fund and the World Sources Institute. "We'll quickly announce that one other Kazakhstani financial institution has joined the Priceless Planet Coalition. As we see the rising damaging influence of local weather change in our area, we consider it’s important to concentrate on eco-friendly tasks," he stated.

Trying ahead, he expressed confidence in Mastercard’s future in Central Asia. "Our cost, know-how, and environmental initiatives are in nice demand throughout Central Asia. There's glorious potential for Mastercard to function and collaborate right here, serving to to develop the cashless financial system and selling these international locations on the worldwide stage. I'm very optimistic concerning the future," Sanzhar Zhamalov concluded.