Kazakhstan and Kaspi Bank

Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia, and partly in Eastern Europe. It borders Russia in the north and west, China in the east, and KyrgyzstanUzbekistan, and Turkmenistan in the south. The capital is Nur-Sultan, formerly known as Astana.

Kazakhstan is the largest country in Central Asia and the ninth largest in the world. Between its most distant points, Kazakhstan measures about 1,820 miles (2,930 kilometers) east to west and 960 miles north to south.

Kaspi Bank is a high-tech company that offers financial and banking services and products for retail and commercial banking. In addition to banking services, Kaspi Bank’s activities include retail financial services, electronic payments, and the organization of electronic trading platforms.

Digitalization in Kazakhstan is happening at a rapid rate, albeit from a relatively low level. Changes include: (i) rapid growth in e-commerce and mobile commerce; (ii) the move from cash to contactless and digital payments; and (iii) growth in innovative digital financial products and services. These multi-year structural changes have accelerated since the start of the COVID-19 pandemic and have created a favorable environment for the further growth of Kaspi’s Payments, Marketplace, and Fintech Ecosystem, all of which are integrated into Kaspi’s single Super App.

According to the KZ-CERT computer incident response service, over 13.9 thousand information security incidents were registered in the first half of this year, which is 20.1% more than in the same period last year. This is the highest rate ever recorded.

As mobile internet access has become widespread, ‘super apps’ offering a range of frequently used and interconnected services via a single app have become hugely popular. In China, Tencent and Alibaba leveraged their WeChat and Alipay user bases, by integrating payments, e-commerce and finance. Mercado Libre, PayTM, GoJek and Grab (amongst others) have built similar mobile ecosystems. In Kazakhstan, Kaspi is the only popular Super App.

The population of Kazakhstan is 19M people, about 11M of them are users of Kaspi app.

Kaspi is comprised of the following three market leading platforms centered around our customers' everyday needs:

Payments Platform connects our customers, which consist of both consumers and merchants, to facilitate cashless, digital transactions. We offer our customers a proprietary technology platform to both pay and receive payments for goods and services, as well as to transfer and withdraw money. Consumers can transact with merchants and amongst themselves using services including the Kaspi. kz Super App, Kaspi QR Scan to Pay, Kaspi Gold debit and virtual card, or any bank card. Merchants can accept payments from consumers using Kaspi Pay POS Solutions, Kaspi QR Checkout and Kaspi Bill Payments, amongst a wide suite of other products. Following our recent acquisition of Portmone Kaspi, we have entered the Ukrainian market and plan to launch payments services for merchants and consumers. Marketplace Platform connects merchants and consumers enabling merchants to increase their sales and consumers to buy a broad selection of products and services offered by a variety of merchants. We help merchants increase their sales by linking them to our technology, Payments Platform, Buy Now Pay Later consumer finance products, marketing and Kaspi Smart Logistics. Fulfilment options include in-store pick up, delivery by merchants, Kaspi Postomate and delivery powered by Kaspi. In 2020 we launched Kaspi Travel, initially offering domestic and international flight tickets through our Super App and in 2021 added domestic rail bookings in line with our plan to buildout a full online travel proposition.In Azerbaijan, we operate a marketplace platform encompassing the country’s leading real estate, new and used cars, new and used goods mobile classified apps. Fintech Platform enables customers to manage their personal finances online and access consumer finance and deposit products primarily through the Kaspi Super App. Our Buy Now Pay Later consumer finance products are also strategically integrated around the product and merchant selection on our Marketplace Platform. This allows customers to shop and access financing seamlessly and then pay over time in affordable monthly installments. In 2020 we broadened our Fintech proposition to include working capital and micro finance products for merchants and these new products are scaled rapidly in 2021.

As part of Kazakhstan’s International Technological Forum «Digital Bridge», co-founder and CEO of Kaspi, Mikheil Lomtadze, presented Kaspi‘s latest innovative government services, to the President of Kazakhstan.

The main goal of digital transformation is to make people’s lives better. To do this it is necessary to improve the quality of services that people regularly use. In the last two years, we have launched service after service together with our colleagues from different government bodies. We have joint projects with the Ministry of Digital Development, Ministry of Finance, State Revenue Committee, Ministry of Labour, Ministry of the Interior and National Information Technologies JSC. The services we have launched make people’s lives better right here, right now”.

«Over 7 million Kazakhstan citizens, our valued customers, visit the “Government services” section in the Kaspi Super App. We have completely digitized the procedure to change vehicle ownership. This is a unique by global standards. The service was launched in conjunction with the Ministry of Digitalization and together with the Ministry of Interior its rollout accelerated. At this moment, every third vehicle in the country is registered fully online using the Kaspi Super App”, said Mikheil.

Mikheil Lomtadze also commented that the application for child social security benefits is also moving online. This is a new service developed together with the Ministry of Labour, Ministry of Digitalization and National Information Technologies JSC. Parents no longer need to visit the Public Service Centre and present paper documents. Just fill in the application online on the Kaspi Super App. “Now parents can spend more time with their children instead of visiting Public Service Centre to do legal paperwork”, – added Mikheil.

The Digital Documents service has become available in mobile applications popular among Kazakhstani citizens, those are Kaspi.kz and Halyk Homebank.  Previously, digital documents could only be used in the eGov Mobile app.

National Information Technologies JSC and MDDIAI in cooperation with Kaspi Bank JSC and Halyk Bank JSC have integrated the Digital Documents service into external platforms in mobile applications of banks. The integration was performed for the convenience of Kazakhstan bank customers.

Now, in the public services section, citizens can use the Digital Documents service in the Kaspi.kz and Halyk Homebank apps. When signing in, a user needs to grant consent to the use of digital documents via a one-time password as without consent, the data will not be transferred to external platforms. This customer identification mechanism ensures high security and prevents possible fraud by third parties. In order to provide a digital document at the place of request, you need to use a QR code or a short six-digit code.

“Digital documents are in great demand among citizens, and there is no need to have the original documents with you as everything is in a smartphone. Thus, about 10 million people use them regularly. Now, to ensure more comfortable use, we are introducing the service to third-party platforms popular among Kazakhstani citizens, though this capability will only be available upon the consent of a citizen” said Bagdat Mussin, Minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan.

A digital document is a prototype of an original copy of a document. Currently, the Digital Documents service contains 18 documents (national ID, driving license, vaccination passport, PCR test and birth certificate, etc.), which are actively used by about 10 million citizens.

Today, digital documents can be used at all the airports of the country, when boarding carriages at the railway stations of KTZ JSC, in Otbasy Bank JSC and Beeline branches, as well as when obtaining services in the second-tier banks and at notaries.

For reference

A digital document is an electronic document generated by a digital document service that is necessary to get public services and other services online, as well as when interacting with individuals and legal entities. The Digital Documents service allows using an electronic version of an original copy of ID document, which enables citizens providing a digital document to government agencies and organizations to get any services (for instance, when buying air and railway tickets, etc.).