| Market Overview | |
|---|---|
| Payment Organisation | Interbank Card Processing Centre (ICPC). |
| Domestic Card Brand | Elkart cards (Elkart), from 2016, also co-badged UnionPay Interregional Zolotaya Korona cards, many co-badged AlaiCard |
| Market Structure | The Kyrgyz card payments market is at an early stage of development and suffered a setback with the upheavals of 2010. VISA is the dominant international brand. Zolotaya Korona is the interregional payment card system mostly used for money transfers. Some cards are co-branded Alai-Card. The National Bank of Kyrgyz Republic, the central bank, supervises the retail payments system and plays the lead role in its development. 16 Kyrgyz banks have foreign participation in their share capital, including banks from Turkey, Pakistan, and Kazakhstan. With the withdrawal of UniCredit in March 2013, there is no major Western bank presence. Foreign capital accounted for 24.5% of banking sector capital at end-2023 while the sector’s overall assets increased by 13.9%. |
| Notable Market Trends | Rollout of Elkhart cards, contactless cards, and POS terminals. Elkhart card numbers grew in 2023 by 15.3% from 2022, mainly due to government measures to increase non-cash state payments like social benefits. The value of Elkhart payments rose by 73.4% in 2023. |
| Major Card Issuers | RSK Bank, DemirBank, KICB, Optima Bank. |
| Major Card Acquirers | RSK Bank, DemirBank, KICB, Optima Bank. |
| Major Card Processors | Interbank Card Processing Centre (ICPC). |
| Key Statistics 2023 | |
|---|---|
| Population | 7.16 million, 0.96 cards per capita |
| Cards | Elkarts: 3,472,400 VISA branded cards: 3,249,500 Mastercard branded cards: 55,300 UnionPay branded cards: 21,000 Zolotaya Korona cards: 92,100 Total cards: 6,890,300 |
| Card Transactions | Payments: 109.85 million, value: KGS 177.77 billion ($2023.39 million) Cash withdrawals: 94.05 million; value: KGS 648.33 billion ($7.38 billion) Total transactions: 203.90 million; value: KGS 826.1 billion ($9.69 billion) |
| POS Terminals | 20.477 |
| POS Payments | 109.8 million |
| ATMs | 2,260 |
| ATM Withdrawals | 94.05 million |
Introduction – Payments in Kyrgyzstan
Kyrgyzstan (also known as the Kyrgyz Republic) is one of the Asian countries in the Eurasian Yearbook. Since independence, the Kyrgyz Republic has officially been a unitary parliamentary republic, although it continues to endure ethnic conflicts, revolts, economic troubles, transitional governments, and political party conflicts. In 2021 it reverted to a presidential system.
The country is located in Central Asia. Landlocked and mountainous, Kyrgyzstan is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the southwest, and China to the east. Its capital and largest city is Bishkek. The country’s official language is Kyrgyz.
Kyrgyzstan is a member of the Commonwealth of Independent States (CIS), the Eurasian Economic Union (EEU), the Collective Security Treaty Organisation, the Shanghai Cooperation Organisation, the Organisation of Islamic Cooperation, the Turkic Council, the TÜRKSOY community, and the United Nations.
Kyrgyzstan is one of the least-developed countries in Eurasia, with about half the population employed in agriculture. Large numbers work abroad, particularly in Russia. Remittance inflows accounted for over $2.14 billion in 2023, making Kyrgyzstan one of the most remittance-dependent countries in the world.
Funds remitted from Russia accounted for 98% of total remittances in 2020. The Kyrgyz government says that the improvement of conditions for its citizens working in Russia is a major motive for joining the customs union.
Increasing financial inclusion, especially in remote regions, is a primary focus of digital banking and payment initiatives in the country, as part of government efforts to transition into a market economy.
As of 2020, the NBKR approved a roadmap for expanding electronic payments and mobile banking across all regions, and the Digital Payment Technologies Development Concept was approved for 2020-2022. This also creates a legal framework for the circulation of cryptocurrencies and the activities of cryptocurrency exchange service providers.
In 2021, the NBKR continued to oversee the implementation of the State programme to increase the share of non-cash payments. The bulk of efforts were aimed at providing remote services to the population using existing online services. Particular attention was paid to the development of the Elkart national payment system, including measures taken to integrate it with the payment systems of other countries, implementation of contactless Elkart cards, and expanding the range of the services provided through the Elkart mobile app. In 2022, the implementation of the third stage of the State Program on Increasing the share of non-cash Payments and Settlements was completed. The activities conducted within the framework focused on expanding the population’s access to banking and payment services, including in the remote regions of the country, through the introduction of innovative payment instruments. In 2023, Uzbekistan focused on expanding non-cash payments, enhancing Elkhart, improving financial inclusion, and integrating with international payment systems.
Banking Sector
The National Bank of the Kyrgyz Republic (NBKR), the central bank, is a state-owned independent legal entity operating following the Constitutional Law, the Law of the National Bank of the Kyrgyz Republic, and the Law of Banks of the Kyrgyz Republic. The Central Bank’s Credit Institutions Supervision Department supervises the banking sector within the Kyrgyz Republic.
The banking sector is still in the early stages of development. Payments are characterized by a high level of cash transactions between legal entities and individuals, while many corporate business transactions occur either in cash or with the use of funds deposited only on the day of payment.
There is a lack of financial sophistication among the population and businesses in general, and non-cash payments are costly about the average income of prospective clients. Though the roll-out of payroll programmes has begun, many salaries, as well as pensions and allowances are still paid in cash, including those of some state employees.
As of end-2013, dollar deposits were 49.5% of total deposits, down from a restated 52.6% in 2012.
In April 2018, the financial regulators of Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan held a Joint Payment Area Working Group meeting to discuss key trends and initiatives related to the use of innovative financial technology to develop and promote today’s services across the Eurasian Economic Union (EEU). Among others, they denote blockchain and instant payments as key priorities.
The economic impact of the COVID-19 pandemic caused a downturn in all sectors of the Kyrgyz economy apart from agriculture, which grew due to restrictive measures and rising demand for food products pushing up price growth. Falling production volumes, supply chain breakdowns, and export-import restrictions led to GDP falling by 8.6% in 2020, in contrast to growth of 4.1% in 2019. In 2021, the economy of the Kyrgyz Republic demonstrated a gradual recovery. GDP grew by 3.6% in 2021. At the end of the year, the services and industry sectors made the most positive contribution to economic growth. The economic growth of the Kyrgyz Republic was restrained by decreased production output in the sectors of agriculture and construction. The Kyrgyz economy grew at an estimated 6.2% in 2023, following a 9% expansion in 2022. This growth was driven by the services sector, particularly services related to transit trade from China and Russia.
According to the NBKR, it managed to contain the average inflation rate for 2020 between 5-7% at a rate of 6.3%, however in 2021 inflation rose to 11.9%. In December 2023, the annual inflation rate amounted to 7.3%, having decreased from 14.7% in December 2022. In the structure of inflation, there was a steady slowdown in the growth of prices for food products.
With remittances comprising a major part of the Kyrgyz economy, in 2023, the net inflow of individuals’ remittances through money transfer systems increased by 24.2% and amounted to $2.14 billion in 2023.
As part of creating the EEU common financial market, in 2020 the NBKR initiated measures to maintain financial stability, maintaining the capital base of the banking sector, and introducing international standards aimed at improving the competitiveness of the domestic commercial banks.
Structure
The banking system is correspondingly underdeveloped, with cash as the main medium of exchange. In 2023, the NBKR reported that 23 commercial banks were in operation, with 13 banks having foreign capital, while the share of foreign capital in the authorised capital of the banking system increased from KGS 44.2 up to KGS 60.1 billion KGS. The share of foreign capital in the authorised capital of banks decreased by 4.2 percentage points and amounted to 20.2%.
In the whole of the country, there were only 318 bank branches at end-2023, according to NBKR, though this was up from 254 in 2011. Only 78 branches are in the capital city, Bishkek, with the balance spread around regional oblasts.
During 2021, one commercial bank was issued a license to conduct banking operations following the principles of Islamic banking and finance through the “Islamic window” in the national and/or foreign currency. In 2023, commercial banks opened seven branches, 41 savings offices, and 11 field cash offices in the Kyrgyz Republic. At the same time, 5 branches, 9 savings offices, and 27 field cash offices of various commercial banks were closed.
At the end of 2023, the system of non-banking financial-credit organizations and other legal entities subject to licensing and regulation by the National Bank included 1 SFCO, 81 credit unions (CC), 121 microfinance organizations (including 9 MFCs, 78 MCCs, and 34 MCAs), 609 exchange bureaus, 2 credit bureaus, and 1 guarantee fund.
In 2015, the NBKR revoked the banking licenses of “IB Issyk-Kul and Manas Bank” due to insolvency, and licenses were issued to “FINCA Bank” and “Chang An Bank” for the right to conduct banking operations. As a result of the reorganization of the Microfinance company Kompanion Financial Group, Bank Kompanion was created on January 1, 2016, receiving licenses to carry out banking operations in national and foreign currencies.
As of mid-2020, AsiaUniversal Bank, Investbank Issyk-Kul, Manas Bank, and Ak Bank had been liquidated.
Banking is dominated by five large banks – Optima Bank, Aiyl Bank, Commercial Bank KG, DemirBank, and RSK Bank, which accounted for 56.7% of banking sector assets at end-2023.
Measured by branches, RSK Bank has the largest network with 53 branches. The next biggest networks were Aiyl Bank (38), Finca Bank (24), KICB (22), Optima Bank (21), and Commercial Bank (18).
| 1 - Main Banks in Kyrgyz Republic (end-2023) | |||||
|---|---|---|---|---|---|
| Bank | Ownership | Total Assets (KGS m) | Assets ($m) | Market share % | Branches |
| Aiyl Bank | State-owned | 109,619 | 1247.7 | 17.8% | 38 |
| RSK Bank | State-owned | 62,998 | 717.1 | 10.3% | 53 |
| Commercial Bank KG | private investors (KG) | 60,177 | 684.9 | 9.8% | 18 |
| Optima Bank | ATF Bank (KZ): 97.14% | 59,421 | 676.3 | 9.7% | 21 |
| KICB | State: 10%, AKFED: 66%, Habib Bank (18%) | 55,673 | 633.7 | 9.1% | 22 |
| DemirBank | investor (TR): 92.5%, HCBG Holdings (NL), 7.5% | 55,438 | 631.0 | 9.0% | 14 |
| Halyk Bank KG | Halyk Bank 100% | 18,061 | 205.6 | 2.9% | 10 |
| Kompanion Bank | Mercy Corps KG (65%), FMO (NL): 17.5%, Triodos Invest: 17.5% | 19,431 | 221.2 | 3.2% | 17 |
| Keremet Bank | State: 97.45%, FUGI and private investors: 2.55% | 14,433 | 164.3 | 2.3% | 10 |
| Finca Bank KG | Finca Bank International (US) | 10,495 | 119.5 | 1.7% | 24 |
| Kyrgyzkommertsbank (KKB) | HS Holdings 52.9%, Individuals and legal enttities (KG): 47.1% | 8,798 | 100.1 | 1.4% | 3 |
| other banks | 139,729 | 1590.4 | 22.7% | 90 | |
| Total (all banks) | 614,275 | 6,991.8 | 100.0% | 320 | |
| Note: In October 2019 Rosinbank was renamed Keremet Bank. NBKR became the main owner of the Bank's shares in October 2018. | |||||
| Note: BTA Bank was acquired by Bakai Bank in January 2020. | |||||
| Source: bank annual reports. | |||||
RSK Bank, sometimes known as SSC Bank, ‘The Savings and Settlements Bank,’ is owned 100% by the Kyrgyz state. In 2012, with assistance from the IMF, the Kyrgyz government developed a strategy for the majority of RSK’s shares to be privatized over the medium term. In 2023, the network of service points of the “RSK Bank” consists of the Head office, 53 branches, and 145 subdivisions operating across Kyrgyzstan. The bank had a network of about 225 ATMs, 443 POS terminals, and 47 cash terminals in 2023.
DemirBank (Demir Kyrgyz International Bank) is 92.5%-owned by Turkish entrepreneur Halit Cingillioglu with HCBG Holdings (NL) holding the balance of 7.5%. Consequently, the bank claims to be the first international Kyrgyz bank with 100% foreign capital. DemirBank’s customer base of more than 400,000 clients is concentrated in Bishkek and Osh, the second city. DemirBank’s branch network is composed of 14 branches, 17 Savings Banks, and 1 exchange office. DemirBank service points include 300 ATMs and 3,600 POS terminals as of 2023.
Kyrgyz Investment and Credit Bank (KIBC) was founded with the support of international agencies – EBRD, IFC, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the Kyrgyz state, the Aga Khan Fund for Economic Development (AKFED), and Habib Bank from Pakistan. It reported more than 30,000 customers and 22 branches and 22 sub-branches in 2023, along with more than 100 ATMs. As of 2023, shareholders included the Kyrgyz Government (10%), Aga Khan Fund for Economic Development (66%), Habib Bank Limited (18%), German Development Bank DEG (2%), EBRD (2%) and International Finance Corporation (2%).
In March 2021, KIBC acquired a 100% stake in First MicroFinance Company, to expand into the microcredit sector and drive financial inclusion for small businesses.
Optima Bank, formerly a UniCredit member bank and before that ATF Bank Kyrgyzstan, is controlled by ATF Bank, UniCredit’s bank in neighboring Kazakhstan. Control of ATF in Kazakhstan passed from UniCredit to KazNitrogenGaz in May 2013 in line with UniCredit’s strategic plan to optimize business in Central and Eastern Europe. In 2023, Optima Bank served nearly 400,000 customers through a total of 21 branches and 164 ATMs.
As of 2023, Optima Bank claimed to have a market share of 9.7% in total banking assets, and 16% in deposits. However, in 2023, the Bank’s market share of total assets increased to 19.2% due to a 14.14% increase in its total assets. In December 2020, Kazakhstan’s Jýsan Bank acquired the shares of ATF Bank, the parent company of Optima Bank in Kyrgyzstan.
The old-established Commercial Bank Kyrgyzstan is the only substantial private bank owned by Kyrgyz nationals. Control changed in June 2008, when Omurbek Babanov became the bank’s new owner. As of 2023, it had 18 branches.
Keremet Bank (formerly Rosinbank) – Previously, Zalkar Bank was the new name given to AUB after its bad debts had been moved into a ‘bad bank.’ In April 2013, DEBRA, the Kyrgyz government’s Agency for Reorganisation of Banks and Debt Restructuring, sold 90% of Zalkar to Investment and Trade Business Holding (ITB Holding), a Russian entity which was the only bidder for the bank at auction, for a reported 193 million soms ($41 million). In Russia, ITB-Holding owns Investtorgbank in Moscow and Vokbank in Nizhny Novgorod. The sale of Zalkar followed pressure on the Kyrgyz government from the IMF.
ITB-Holding, the Russian group that acquired Zalkar (then rebranded as Rosinbank), said the bank would focus on a full range of banking products, from the card business, micro-lending, and real estate mortgage to internet banking technologies.
Rosinbank Case: The first suspicious transactions of money laundering in Rosinbank were detected by the National Bank in 2015. According to NBKR, after detecting suspicious operations, the bank was fined KGS 6.4 million.
In October 2018 the NBKR became the main owner of the bank’s shares with a 95% stake. By December 2020, the ownership ratio of the NBKR amounted to 97.45%. The rest of the shares are distributed between the FUGI (State Property Management Fund) under the government and individuals. In September 2019 Rosinbank was renamed as Keremet Bank.
In December 2020, Keremet Bank began issuing Elkart cards including built-in contactless functionality.
Elkart cards are interoperable with other national card systems ArCa of Armenia, Belkart of Belarus, UzCard of Uzbekistan, Corti Milli of Tajikistan, and APRA of Abkhazia. Russia’s Mir network is the latest national card system to join the network.
As of 2023, Keremet Bank had 10 branches, over 150,000 customers, and over 600 ATMs and POS terminals, along with a growing number of digital and mobile banking users. Keremet now undertakes remote verification of applications through the Internet and mobile banking.
Kyrgyzkommertsbank (KKB) – In February 2015 Kazkommertsbank (KZ) sold 95.75% of shares to the Kyrgyz citizen Mr. K.M. Mamakeev. Then, in March 2015, “Kazkommertsbank-Kyrgyzstan” was renamed to Kyrgyzkommertsbank. In June 2017 during the additional issue of shares of Kyrgyzkommertsbank, Japanese public company Sawada Holdings (JPN) acquired 52.90% of KKB shares. As of 2023, the bank had three branches.
In December 2021, Kyrgyzkommertsbank switched to its processing center, located in the territory of Kyrgyzstan, which allows customers to receive a number of banking services faster and more securely. In 2022, a video banking service was launched, allowing customers to apply for a bank card online, open a deposit, or receive a loan and installment plan online without going to the bank.
State-owned Aiyl Bank, once known as Kyrgyz Agricultural Finance Corporation, is primarily concerned with finance and credit for the agricultural sector; its proposed privatization was postponed in the aftermath of the 2010 disturbances. In 2023, Aiyl served 346,000 customers through 38 branches, 173 bank offices, 348 POS terminals, and 138 ATMs, and issued 299,762 bank cards.
FINCA Bank KG is a subsidiary of FINCA International (US), a non-profit, microfinance organization, founded by John Hatch in 1984. Sometimes referred to as the “World Bank for the Poor”, FINCA is the innovator of the village banking methodology in microcredit and is widely regarded as one of the pioneers of modern-day microfinance. FINCA has 18 affiliated host-country institutions (affiliates), in Latin America and the Caribbean, Africa, Eurasia and the Middle East and South Asia. Along with Grameen Bank and Accion International, FINCA is considered to be one of the most influential microfinance organizations in the world. As of 2023, it had over 200,000 customers and 24 branches.
Also present from Kazakhstan is Halyk Bank. BTA Bank (KZ) was owned by Halyk Bank (KZ) through Kazkom (KZ). In January 2020, Bakai Bank acquired BTA Bank. Financial terms of the transaction were not disclosed.
The banking sector was formerly dominated by AUB, the biggest bank by most measures. Two-thirds of the shares in AUB were controlled by US and Russian entrepreneurs, while two former US senators, Bob Dole and Bennett Johnson, joined the board in 2007.
Digital Banking
From a low base in 2010, internet and mobile banking are growing fast in the Kyrgyz Republic, particularly the mobile side. All retail banks in the Kyrgyz Republic now offer online banking and mobile banking apps to their clients.
Internet banking activity is monitored by the National Bank of Kyrgyz Republic (NBKR), which maintains statistics on the number of users of remote banking services and the number of users by bank.
Several commercial banks, including DemirBank, KICB, and Optima, have launched Internet banking services. Payments for utilities and mobile and fixed telephone service bills are among the facilities on offer.
In June 2014, KICB introduced a mobile electronic wallet product, ‘Elsom’, based on a virtual account number, with most of the functions of a bank’s current account.
There is no bank-independent electronic banking standard in the Kyrgyz Republic; each bank offers its proprietary system for banking purposes.
Payment Services
In 2024, the more than 300 different payment services offered in Europe can be grouped into:
- Card brands and card types
- E-money and prepaid products by issued brand
- Account-based payment services by issued brands, e.g. IBAN-based SCT/SDD services
- Advanced payment services: e.g. wallets by issued brand
- Digital payment services: e.g. digital scheme wallets issued by brand
Card Brands and Card Types
All retail banks in the Kyrgyz Republic issue cards. Payroll scheme cards form a large part of the card base. Most cards are internationally-branded and there are significant domestic schemes. In 2020, the EMV migration continued.
In 2006, the domestic Elkart national payment system was launched to enable payroll projects. From September 2016, Elkart EMV cards were issued. The Elkart EMV chip could be used for recording digital signatures, biometric data, and special applications. There are also Elkart cards co-badged with UnionPay.
Initially, Elkart failed to gain traction as it was overtaken by issuing VISA cards in salary projects, Alai cards issued to Kyrgyz pensioners, and Zolotaya Korona cards. However, in recent years with the encouragement of the government to further non-cash payments, Elkart issuance has resurged, amounting to over 3.47 million issued as of 2023. To promote state and non-cash payments through electronic means, in 2020 the NBKR temporarily eliminated commissions and fees for using Elkart cards to withdraw pension and state benefit payments when used in commercial banks. There was also a temporary ban on charging Interbank Processing Centre for commissions from commercial banks for payment processing on Elkart cards used by pensioners and recipients of state benefits.
During 2020, work continued integrating the Elkart national payment system with the Russian Mir national payment system Mir, enabling holders of Mir cards to use them in Kyrgyzstan. At the same time, a money transfer project enabling transfers from Mir cards to Elkart cards was implemented.
In 2021, the Elkart scheme was developed further with integration with the national payment systems of Armenia’s ArCa and Belkard of Belarus was completed. 19 Russian banks and financial organizations were connected to the service of money transfers P2P transfers from Mir cards to Elkart cards. The national payment system “Elcard” was enriched with a new feature “Elcard Pay” to make contactless payments using smartphones via NFC technology. The project on issuing contactless cards “Elcard Bezkontakt” is actively implemented, and the distribution of the mobile application “Elcard Mobile”, “Elcard Trade”, as well as the service “Merchant Platform” among the population and businesses are in progress. In 2023, 3.7 million P2P-transfers were made to the amount of more than KGS 29.3 billion as part of the national payment system “Elcard” integration with other national payment systems of the EAEU countries
As of the end of 2023, the total number of bank payment cards “Elcard NFC” in circulation increased by almost two times compared to the same period of 2022 and amounted to approximately 750,000. At the same time, more than 37 million payments to the amount of more than KGS 62.9 billion were made through the mobile application “Elcard Mobile”, the indicators increased by 55.8% and 88.4%, respectively, compared to 2022. More than 17,000 payments to the amount of KGS 23.5 million were made through the mobile application “Elcard Trade”, the indicators increased by two times and by 24.3%, respectively, compared to 2022. More than 78,000 payments for the amount of more than KGS 53 million were made through the service “Elcard Pay”.
At the end of 2021, the number of contactless Elkart cards in circulation was 123,130. The range of services provided through the Elkart mobile app was expanded to include services of 13 commercial banks, as well as the mobile app Elkart Trade to enable merchants to receive non-cash payments for goods or services, including the use of QR codes.
Kyrgyz banks began issuing interregional Zolotaya Korona cards in October 2010 (see also Russia country profile for further information on Zolotaya Korona).
Alai-Card, originally operated by RSK Bank, the savings bank group, had been the most important local scheme. “Alai-Card” is a trademark (co-badged brand) under which “Zolotaya Korona” cards are issued and serviced.
Kyrgyz card products like consumer cards, commercial cards, and purchasing cards range from classic cards to gold cards and platinum cards. Also, salary cards are widely introduced in the Kyrgyz Republic. Additional card features (e.g. picture cards, bonus points, PIN selection at ATMs, and card control by SMS notification) are used to attract cardholders. Also, individual picture cards and collector cards can be issued on demand. Further, card-to-card P2P services have been launched.
From July 2023, banks and other card issuers will no longer issue Maestro cards. Instead, they will need to issue a Debit Mastercard. Maestro was launched in 1991 and was the world’s first debit card that could be used via an online network. About 400 million Maestro cards are in circulation worldwide, mainly across Europe. However, Maestro is not enabled for the demands of e-commerce and cannot be used for online or in-app payments; hence, the decision to phase it out is in favour of Mastercard Debit products. Visa announced that Electron cards will be phased out globally in 2024. The features of the Visa Debit card have been modified to match the features of the Visa Electron card.
In October 2021, the NBKR registered JCB as an authorized payment scheme in the Kyrgyz Republic, which will enable banks in the country to settle JCB card transactions. In 2022, LLC “Green Telecom Service” was licensed to issue e-wallet access payment cards in the form of virtual cards and/or cards on physical media for the period from October 20, 2022, till October 20, 2023, as part of the special regulatory regime.
Debit cards issued are Elkart, Zoloyata Korona, Mastercard, and VISA.
Credit Cards issued are cards branded VISA, Mastercard, or UnionPay.
Prepaid Cards – Leading Kyrgyz banks have started to issue prepaid cards and virtual prepaid cards for internet use.
Co-branded cards – In Kyrgyz Republic, few co-branded cards are in circulation.
Contactless Cards and form-factors
From 2015, Kyrgyz banks have started to issue contactless cards with the PayPass or payWave function. Commercial Bank KG was the first issuer of contactless cards in the Kyrgyz Republic.
Predefined contactless limits – Contactless payments of purchase amounts below a predefined contactless limit are without PIN or signature and without transaction receipt. In the Kyrgyz Republic, the contactless limit for low-value payments without PIN/signature was set at KGS 1,500 in 2018 for cards with the PayPass or payWave function. In March 2020, in response to the COVID-19 pandemic, the contactless limit was raised to KGS 2,500 to enable more non-cash transactions. Notably, the Elkart contactless NFC project got underway in 2020.
Interchange Fee Arrangements
International and Intra European Non-EEA Interchange Fees are set by the members of the international card schemes to be applied in case of cross-border transactions or foreign cards used in the Kyrgyz Republic, respectively. The effective rates of Mastercard and VISA Europe can be found on the respective Mastercard and VISA websites.
Domestic Merchant Interchange Fee (DMIF) for Kyrgyz cards is defined by Mastercard and VISA, respectively.
E-Money
Electronic money in the Kyrgyz Republic remains one of the most popular payment methods. In 2022, The Board of the National Bank issued a permit to OJSC “RSK Bank” to issue e-money and this increased the number of financial institutions (commercial banks) licensed to issue e-money to 10, although only six were issuing e-money by the end of 2022. By the end of 2023, there were 10 operating local e-money settlement systems in the Kyrgyz Republic.
E-money has been one of the great success stories of the Kyrgyz banking sector in recent years. At the end of 2023, the number of e-wallets increased by 19.7% compared to 2022 and amounted to 6.5 million wallets. In 2023, the volume of money transfer operations between e-wallets increased by 58.9 and 14.6%, respectively (10.2 million operations were conducted amounting to KGS 25.7 billion).
The volume of operations for goods and services payment with e-money increased by 41.2% and amounted to KGS 29.4 billion, meanwhile, the number of operations increased by 35.7% and totalled 20.8 million operations. In 2023, the volume of payments made via the payment organisations of the Kyrgyz Republic increased by two times compared to 2022 and amounted to KGS 379.9 billion. The number of payments made by the payment organisations increased by 49.0 million operations, or by 26.3%, and totalled 235.2 million operations.
The volume and value of e-money redemption operations increased by 35.5%, respectively with 6.1 million operations conducted for the amount of KGS 26.8 billion) in 2021.
Digital Account-to-Account Payment Services
In the Yearbooks, account-based payment services are classified as bank payment services on bank accounts offered by banks or by independent payment initiation service providers (PISP).
Credit transfers take the form of payment orders in the Kyrgyz Republic. They can be paper-based or automated. These are commonly submitted in paper form to banks before being processed electronically, but they can also be submitted in electronic form. Electronic credit transfers are used by companies for salary and supplier payments. Collection orders are typically used by the government for tax and customs payments and account for only a small number of transactions.
Direct debits are available in the Kyrgyz Republic, but their use is very limited.
As in many European countries, bank transfers have been adopted for online payments, enabling consumers to pay direct from their bank account as an alternative service to payment cards.
Advanced Payment Services
In the Yearbooks, advanced payment services are classified as online wallets, e-wallets, and/or mobile wallets with any type of payment service chosen by the wallet user to complete the payment.
In selected Kyrgyz online shops, the wallets PayPal, Yandex, and Webmoney are offered as payment means.
PayPal – PayPal is available in Kyrgyzstan. As of end-2023, PayPal reported 426 million active customer accounts globally, down 2% from 435 million in 2022. This consisted of 391 million customer active accounts and 35 million merchant active accounts across approximately 200 markets. PayPal’s total payment volume increased to $1.53 trillion (up 12% from 2022) and customer engagement grew to an average of 58 transactions per active account, driving 14% growth in transactions per active account at the end of 2023.
During 2020, with consumers worldwide embracing digital wallet capabilities, the company launched several related services including QR Code Checkout, Buy Now Pay Later, Crypto purchasing, and Xoom direct transfers to bank accounts and debit cards.
In June 2018, PayPal continued its shopping spree with a $400 million cash deal to acquire e-commerce platform Hyperwallet. The acquisition followed deals to buy Venmo, Xoom, Sweden’s iZettle (renamed Zettle) for $2.2 billion, and AI-based merchant marketing outfit Jetlore, as Paypal bids to extend its reach to all corners of the payments market.
In May 2022, PayPal Ventures invested in Modulr, an embedded payments platform for digital businesses, as part of a $108 million Series C funding round led by General Atlantic, Blenheim Chalcot, Frog Capital, and Highland Europe. Modulr delivers payments infrastructure for over 200 top-tier customers, including Revolut, Wagestream, Sage, and BrightPay, and processes an annualized transaction value of more than £100 billion.
In 2023, PayPal is exploring the sale of Xoom, its international money transfer subsidiary, in a bid to cut costs and focus on high-growth business areas. Also, Stax Payments – an all-in-one payment provider for businesses – announced its partnership with PayPal in July 2023. This partnership will allow PayPal’s users to easily make payments with more than 20,000 merchants of Stax through a fast checkout process as well as new payment options such as Buy-now-pay-later solutions.
In 2023, PayPal launched its own US dollar-denominated stablecoin, PayPal USD (PYUSD), which is fully backed by US dollar deposits, short-term US treasuries, and similar cash equivalents and designed for digital payments and Web3. Eligible US PayPal customers who purchase PayPal USD will be able to transfer the token to external wallets, send person-to-person payments, fund purchases at checkouts supported by PayPal, and convert cryptocurrency holdings to and from PayPal USD.
In January 2024, PayPal launched AI-powered features to drive personalised offerings for both merchants and customers based on the data it possesses. These features include Smart Receipts (for merchants) which predicts what shoppers may want to buy next from the merchant. The merchant can then offer personalised recommendations, and cashback offers on this receipt. A major feature for users is CashPass which will use give users personalized cashback offers based on an AI analysis of their spending activity.
In March 2024, PayPal launched a complete suite of payment processing tools for online small businesses in the UK, Canada, and across more than 20 European markets. The PayPal Complete Payments package enables small businesses to accept an expanded range of payment instruments including PayPal, buy now pay later, Apple Pay, Google Pay, credit and debit cards, and alternative payment methods from around the world. By April 2024, PayPal added new features to its complete payments solution for small businesses to enable small businesses to accept a range of payments including PayPal, Venmo and PayPal Pay Later products. PayPal also gave small businesses access to four new features to help them drive payment acceptance and enhance how they run their business, and this will include Apple Pay as a checkout option.
Digital Payment Services
In the Yearbooks, digital payment services are classified as card-based payment services using EMV tokenization security on the internet combined with HCE NFC technology in case of contactless payments at POS terminals.
As of mid-2022, the Click to Pay online payment checkout service was not available in Kyrgyzstan. Click to Pay is a joint service between Mastercard, Visa, Discover, and American Express, enabling consumers to make secure one-click payments without having to enter card details or passwords online.
Contactless payments on cards using Apple Pay, Samsung Pay, or Google Pay (previously Android Pay) made by foreign users at contactless POS terminals in Kyrgyzstan are processed as payments on contactless cards.
Global contactless transaction values will reach $10 trillion by 2027, up from $4.6 trillion in 2022, with contactless mobile and wearable payments expected to grow by 221% and contactless card payments by 119% over the same period.
Contactless ticketing spending will increase by more than 440% globally between 2022 and 2027, with growing prominence and support for OEM pay solutions, such as Apple Pay, Google Pay, and Samsung Pay being a key enabler for mobile NFC ticketing across many markets.
Overall growth in contactless transaction values will be catalyzed by growing mobile payments adoption, with 99% of all smartphones capable of making contactless payments by 2027, up from 94% today, and average transaction values for Apple Pay reaching $28.20 and $33.40 for Google Pay.
Apple Pay has become one of the world’s most used digital payment methods. Its user base increased from 521.4 million to 535.8 million in 2022. By 2024, the total number of Apple Pay users was estimated at 640 million and is projected to exceed 700 million by 2027,
According to Apple’s Q2 last 2022, they saw a record of transactions with more than 1.8 billion processed during the quarter, up 40% year-over-year. This payment method is also available in over 90% of the US and 60% of stores globally.
Apple Pay is the #1 most popular digital wallet with a 92% market share, processing a global total of $6 trillion in payments in 2022 and produced a revenue of $1.9 billion.
As of 2023, Apple Pay processed 14.2% of all online consumer payments and 3.5% of all in-store purchases.
Around 51% of global iPhone users have enabled Apple Pay. There are 10 million Apple Pay-friendly contactless payment terminals worldwide.
The transactions made using Apple Pay are mostly in-store purchases, online transactions, and peer-to-peer payments. It is trendy for contactless payments, especially during the COVID-19 pandemic.
In 2024, an estimated 60.2 million Apple Pay users in the United States; projections indicate that over 75 million consumers will use Apple Pay by 2030.Putting it all together, Apple Pay is increasingly becoming an effective customer acquisition and retention feature for Apple. In June 2022, Apple Pay added Apple Pay Later, its buy-now-pay-later service, allowing users to split purchases into four equal instalments with no interest or fees. Initially launched in the US, the service is expected to roll out to other countries during 2023. In 2023, Apple launched its Card savings account from Goldman Sachs with a 4.15% annual percentage yield. Apple Wallet users can set up and manage a savings account directly from Apple Card in Wallet, with no fees, no minimum deposits, and no minimum balance requirements.
Apple Pay is not yet available in Kyrgyzstan.
Google Pay has 150 million active users across 42 global markets.
In January 2022, it was reported that the company was planning to transform Google Pay into a “comprehensive digital wallet”, following the app’s reported slow growth and the shutdown of Plex. In April, it was reported that Google was planning to revive the “Google Wallet” branding in a new app or interface and integrate with Google Pay. Google officially announced Google Wallet on May 11, 2022, at the 2022 Google I/O keynote. The app began rolling out on Android smartphones on July 18, replacing the 2018 app and co-existing with the 2020 Google Pay app in the US. While the app name itself was changed from Google Pay to Google Wallet, the service name of actually paying for things online or in-store remains “Google Pay”.
In the US, Google Pay has over 25.2 million users. Also, Google Pay is used on nearly 800,000 websites as a secure payment gateway. Roughly 20% of all mobile purchases are made using this digital payment processor. Google Pay ranks 3rd among mobile payment methods globally. In Russia, it has an online usage distribution of 35.18% and has recorded approximately 1,281,838 transactions online. Available in 19 countries, 30% of Google Pay’s active users are millennials. It is one of Canada’s top 5 online payment apps and is the primary mobile payment method for 2,193 businesses worldwide. In India, Google Pay boasts 67 million active users and holds 36.10% of the mobile application market. Its widespread adoption and significant market share highlight its growing importance in the global digital payment landscape.
In November 2022, Google Wallet was launched in 12 more countries including Kyrgyzstan. Similarly, for the first time in Kyrgyzstan, RSK Bank presents a one-touch payment service for goods and services using Google Pay via smartphone based on the Visa payment card. In 2023, New Features: The app introduced new features to enhance user experience, including improved spending insights and the ability to manage expenses more effectively
Google Pay is available through 12 banks in Kyrgyzstan as of November 2024.
Samsung Pay is available in 29 countries worldwide and has an estimated 140 million users. Samsung Pay works with Galaxy phones, including the latest Galaxy S22. Samsung claims that its system will work with almost all point-of-sale systems: NFC, magnetic stripe, and EMV (Europay, Mastercard, and Visa) terminals for chip-based cards. In May 2020, Samsung Pay unveiled Samsung Money by SoFi, a mobile-first money management experience that makes available a cash management account and accompanying Mastercard debit card via the Samsung Pay app, in partnership with fintech company SoFi.
In June 2022, Samsung Pay announced the launch of Samsung Wallet, enabling users to organize payment, loyalty, and gift cards into one app. Samsung Pay is not yet available in Kyrgyzstan but plans to launch in the country by 2023 at the latest once the number of payment cards in circulation justifies the investment.
Overview of Cashless Payments
Although non-cash payments continue to rise in line with the expansion of the national payment system, cash continues to be the main method of making retail payments in Kyrgyzstan.
However, the use of payment cards in the Kyrgyz Republic, particularly debit cards, has increased rapidly in recent years.
The regulation on “Non-cash Payments in the Kyrgyz Republic” has been approved to improve the procedure for making non-cash payments in the territory of the Kyrgyz Republic, as well as to determine the forms and requirements for processing payment documents used in non-cash payments by the banks and other participants of the payment system as part of ongoing digitalization activities in the banking and payment systems.
Exchange Rates
The currency of the Kyrgyz Republic is the som (KGS).
The domestic foreign exchange market situation was affected by some external factors, including the US dollar appreciation in the global financial markets, and a significant depreciation of national currencies in some country’s trading partners. The US dollar exchange rate fell from KGS 69.91 in 2016 to KGS 87.86 in 2023 for 1 USD.
| 2 - Average Exchange Rates | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| 1 EUR in KGS | 78.1568 | 88.3661 | 100.1894 | 88.8240 | 95.0164 |
| 1 USD in KGS | 69.7893 | 77.3461 | 84.6408 | 84.1162 | 87.8561 |
| Source: National Bank of Kyrgyz Republic. | |||||
Market Infrastructure
National Bank of Kyrgyz Republic (NBKR)
National Bank of Kyrgyz Republic (NBKR), the central bank, plays a key role in the development of payment systems in the Kyrgyz Republic, with a particular focus on payment cards, which it sees as crucial in reducing the number of cash transactions. Out of the World Bank’s $9 million modernization project, $4.5 million was expended on payments system infrastructure.
Reporting in April 2013 on its $9 million project to help modernize the payments and banking system, the World Bank said its targets had been scaled down. It said the 2010 revolution “led to the destruction of bank buildings, ATMs and payment machines” and noted, “persisting low standards of living and related factors that deeply affected the banking system and the ability to use and access bank cards.”
The payment system comprises several elements – the RTGS (Real Time Gross Settlement System), the bulk clearing system (BCS), the card payment systems, the money transfer systems, and the cross-border payments systems.
The NBKR, the commercial banks, the Interstate Bank, the Eurasian Development Bank, the Central Treasury of the Ministry of Finance of the Kyrgyz Republic, the Deposit Protection Agency of the Kyrgyz Republic, the Social Fund of the Kyrgyz Republic, the State Accumulative Pension Fund, CJSC “Central Depository” Payment system, and CJSC “Interbank Processing Center” were the participants in the interbank payment systems of the RTGS and BCS.
In 2023, 10.8 million payments were made via the interbank payment systems in the amount of KGS 14.0 trillion. The number and volume of payments increased by 23.1 and 32.3%, respectively, compared to 2022. The volume of payments via the RTGS and SPC increased by 32.2 and 36.1%, respectively. The number of payments via the RTGS and SPC increased by 43.7% and 21.3%, respectively, compared to 2022.
In early 2012, NBKR approved the document ‘Main Directions of Payment System Development in the Kyrgyz Republic in 2012-2014.’ This called for further development of retail payments, including Elkart, and for strengthened oversight of the retail payments system.
In 2015, to increase the efficiency of the Kyrgyz payment system, integration projects with Russia’s National Payment Card System (NPCS) were initiated and a Memorandum of Cooperation with Chinese UnionPay ensures acceptance and servicing of the cards of the national system “Elkart” abroad. Cross-border payments and the development of e-commerce deals were also signed.
Previously, in its end-2008 review, ‘Banking System Development Trends,’ NBKR said a priority area of the banks’ development strategy is the implementation of payroll projects “based on the international, local and national systems using cards, so achieving a sound increase in cards emission and transactions volumes.” Payroll schemes were slow to arrive in Kyrgyz Republic, with the first of these cards issued only in 2006.
In 2008, the Kyrgyz parliament and the president approved the law, ‘On bank deposits protection,’ a deposit insurance scheme that aims to improve confidence in the banking system. The authorities intend that the introduction of this law will lead to an increase in deposits held at banks.
In 2021, the NBKR continued working to ensure the efficiency, security, and reliability of the payment systems operation by improving the regulatory legal frameworks. Coordination and control over the implementation of the State Program on Increasing the Share of Non-cash Payments and Settlements in the Kyrgyz Republic for 2018-2022 was continued. Implementation of the third phase of the State Program on Increasing the Share of Non-cash Payments and Settlements in the Kyrgyz Republic for 2018-2022 (the State Program on Increasing Non-cash Payments) was completed in 2022. Measures were taken to expand the population’s access to banking and payment services, as well as in the remote regions of the country. The provision of the possibility to make payments using digital payment technologies was expanded, which contributed to an increase in the non-cash payments of taxes and growth in the number of users of bank payment cards among pensioners and recipients of social benefits.
Interagency Commission on Increasing the Share of Non-Cash Payments and Settlements
In 2011, the government launched MSC, the ‘Multi-sectoral Commission on Increasing the Share of Non-Cash Payments and Settlements in the Kyrgyz Republic,’ since renamed the Interagency Commission. It aims to coordinate government bodies and oversee the implementation of activities for increasing the share of non-cash payments and settlements, including an increased focus on salary projects.
The Interagency Commission decided on the development of a ‘State Program of Measures for Increasing the Share of Non-Cash Payments and Settlements in the Kyrgyz Republic for 2012-2017’ (second stage) to stimulate the demand for non-cash payments and ensure transparency and efficiency of the flow of budget proceeds and money circulation.
The Commission’s ‘Action Plan’ detailed the tasks involved in shifting to non-cash methods when accepting payments or making disbursements from the state budget, making payments by economic entities, expanding the infrastructure for non-cash payments, and ensuring the security and reliability of noncash payment systems.
Direct debits are another key focus of the Action Plan, and commercial banks have been encouraged to make the necessary investments. In 2011, the utility “Severelectro” and two other large enterprises, “Bishkekvodokanal” and “Bishkekteploset” conducted payments through direct debit of customers’ bank accounts. Work on direct debits was stepped up in 2012.
In its update on the Commission’s progress in 2012, NBKR said that projects on the payments of pensions, social benefits, wages, and scholarships via payment cards had been implemented, with banks launching the first cards for non-cash payment of pensions and social benefits in May 2012.
Under the State Programme, in 2023, pensions were paid to 598,600 people through commercial bank accounts (78.0% of the total number of pensioners), compared to 548,500 people or 74% of the total number of pensioners in 2022. Social benefits were paid to 331,800 people through bank payment cards representing 98.9% of the total number of recipients, in 2022, compared to 360,700 people or 97.4% of the total number of recipients in 2022.
In its drive to develop the Kyrgyz cashless payments system, NBKR is drawing on the experience of its Azerbaijan counterpart, the Central Bank of the Republic of Azerbaijan (CBA), which has a direct mandate from the presidency to promote mass-market cashless payments. NBKR staff have served internships with CBA specifically to study methods of developing the national POS network and the requisite legal and regulatory foundation.
Declaring 2019 the Year of Regional Development and Digitalization of the Country
In 2019, in response to a presidential decree, “Declaring 2019 the Year of Regional Development and Digitalization of the Country”, the NBKR focused on improving the quality and accessibility of financial services, including infrastructure for digital payment services. Standards for using QR codes to pay for goods and services in the Kyrgyz Republic were introduced, and remote servicing and issue of payment cards for microfinance organizations were regulated to encourage use in rural regions. Also, amendments were introduced to some regulatory legal acts regarding the use of electronic signatures to limit the risks of certain operations and clarify the relationships between the banks and other supervised organizations that provide remote services.
The adopted amendments are focused on expanding the possibilities for remote payment services and will allow identified users to receive banking and payment services without additional visits to the financial institution in which they are served. One amendment included payment of pensions, allowances, and other receipts/payments from budgetary funds, as well as the wages within the framework of the payroll card programs of the state-funded organizations and business entities with a direct state participation share of more than 50%, shall be made only via the national payment card Elkart.
The Concept for The Development Of Digital Payment Technologies In The Kyrgyz Republic for 2020–2022
As of 2020, the NBKR approved a roadmap for expanding electronic payments and mobile banking across all regions, the Digital Payment Technologies Development Concept was approved for 2020-2022. This also creates a legal framework for the circulation of cryptocurrencies and the activities of cryptocurrency exchange service providers.
In 2020, the NBKR continued to oversee implementation of the State programme to increase the share of non-cash payments. The bulk of efforts were aimed to providing remote services to the population using existing online services.
Existing payment infrastructure in the country, including bank payment cards, e-wallets, mobile apps, Elkart Mobile, payments and transfers using QR codes, mobile banking, and internet banking allowed business entities and the population during lockdowns to make payments and settlements remotely.
Along with this, the NBKR, together with commercial banks, payment organizations, and payment system operators carried out activities to ensure uninterrupted and safe payments and settlements, including the provision of online services, the operation of ATMs, POS terminals, payment terminals, and offsite cash desks of commercial banks to quarantine zone.
As part of the ongoing digitalization of the banking system, as of 2020, the NBKR is pushing for the expansion of remote banking services, including ID verification of banking customers remotely.
Elkart Bezkontakt was reconfigured to conduct transactions outside the Kyrgyz Republic through international payment systems partners.
Elkart Mobile payment services, including replenishment of accounts and e-wallets, redemptions, payment of taxes, fines, and government services were expanded and made available through 10 commercial banks.
In 2021, the NBKR continued to implement measures within the framework of the Concept for the development of digital payment technologies. A cross-border pilot project was implemented for API testing to ensure digital interaction of the financial institutions in the EAEU space. Three commercial banks from the Kyrgyz Republic were involved in the pilot project to develop a unified standard. In 2022, the Digital Som Concept was approved, according to which the National Bank will additionally issue a digital form of the national currency. The document also defines the terms and stages for implementation of the Digital Som project.
In December 2023, a Memorandum of Cooperation was signed with the National Bank of Georgia to exchange information and experience within the framework of implementation of the Digital Som project also the Digital Som project group was established as part of the Digital Som project, conducted by the Digital Som Concept approved by the Resolution of the Board of the National Bank.
Further development of the draft laws of the Kyrgyz Republic, “On activities in the field of virtual assets” and “On amendments to certain legislative acts in the field of virtual assets”, continued to create a legal framework for regulating virtual assets circulation. A regulatory sandbox was launched to reduce the time and costs of introducing innovative banking and payment services and new products.
Card Issuers – Overview
The banks in Kyrgyzstan issue credit cards, charge cards, debit cards, and prepaid cards in combination with bank accounts. Addressing the specific needs of personal banking and business banking, the card portfolio is composed of consumer cards, business cards, and corporate cards.
Dedicated card products are offered for the individual client segments: families, millennials, students, affluent clients, small business clients, corporate clients, and even basic account clients. The credit cards offered range from classic cards to gold cards and platinum cards.
As of 2023, 30 legal entities had payment institution licenses from the NBKR, along with 29 payment system operator licenses. Additionally, as of 2023, 33 operators were registered money transfer systems (14 international and 19 local), 9 operators and issuers of international e-money systems, 7 international settlement systems using bank payment cards, and 2 interaction operators for payments using QR codes were registered at the end of 2023. The commercial banks (67.8%) were the main holders of notes at the end of the reporting period. The share of resident legal entities and individuals in the total volume of notes amounted to 25.3%, and institutional investors – 6.9%.
The Kyrgyz banks issue debit cards branded Elkart, Zolotaya Korona, Mastercard, VISA, or Electron, and delayed debit cards and credit cards branded Mastercard or VISA. KICB, RSK Bank, Keremet Bank, and Optima Bank issue UnionPay cards. Kyrgyzkommertsbank was previously the American Express issuer.
In March 2020, JCB signed a license agreement with Kyrgyzkommertsbank to start acceptance of JCB cards in the Kyrgyz Republic and to start JCB merchant acquiring operations.
In November 2020, Keremet Bank became the first to issue dual multi-currency UnionPay cards, which are multifunctional single-chip payment cards with a contact and contactless interface.
The leading card issuers are RSK Bank, DemirBank, KICB, and Optima Bank. Other major issuer banks include Commercial Bank and Rosinbank. Table 3 illustrates the card brands issued by the Kyrgyz banks as of mid-2023.
| 3 - Leading Card Issuers in Kyrgyz Republic | ||
|---|---|---|
| Domestic Issuers | Issued Card Brands | Owned by |
| Optima Bank | VISA, UnionPay; VISA Debit; Elcard | ATF Bank (KZ): 97.14% |
| RSK Bank | Mastercard, VISA, UnionPay; VISA Debit, Debit Mastercard, Elcard | State-owned |
| DemirBank | VISA; VISA Debit; Elcard | 2017: investor (TR): 92.5%, HCBG Holdings (NL), 7.5% |
| KICB | VISA;VISA Debit; Elcard; UnionPay | State: 10%, AKFED: 66%, Habib Bank (18%) |
| Commercial Bank KG | VISA; VISA DEbit; Elcard, Zolotaya Korona | private investors (KG) |
| Keremet Bank | VISA, UnionPay; VISA Debit; Elcard | State: 97.45%, FUGI and private investors: 2.55% |
| Kyrgyzkommertsbank | Mastercard, VISA, AmExp, UnionPay; Debit Mastercard; Elcard | 2017: Sawada Holdings 52.9%, private investor (KG): 47.1% |
| Aiyl Bank | Elcard | State-owned |
| Bakai Bank KG | VISA; VISA Debit; Elcard | Bakai Bank (KZ) |
| Halyk Bank KG | VISA; VISA Debit; Elcard | Halyk Bank (KZ) |
| Kompanion Bank | VISA;VISA Debit; Elcard | Mercy Corps KG (65%), FMO (NL): 17.5%, Triodos Invest: 17.5% |
| other banks | VISA; VISA Debit; Elcard | other bank owners |
| Note: many Kyrgyz Bank issue Zolotaya money transfer cards co-badged AlaiCard. | ||
| Note: In January 2020, Bakai Bank acquired BTA Bank. | ||
| Source: PCM research | ||
Outlook – By mid-2024, Kyrgyz card issuers face the following notable challenges:
- Rollout of contactless cards and online/mobile bank payment services combined with mobile apps
- Implementation of 3D-Secure 2.0; launch of digital wallets, in-app payments, in-store payments
- Competition from card-less payment service providers: PISPs, AISPs, FinTechs
- Tokenisation security combined with HCE NFC and card credentials stored on file
- Open Banking ecosystem and demanded access to card accounts (XS2A)
Card Processing and PSPs
In Europe, the payment processing industry is composed of card processors, ATM/POS network hub processors, e-/m-payment service processors (PSPs), and specialized processors (e.g. CSM processors, TSM services).
In the Kyrgyz Republic, card issuer processing services range from technical issuer processing, including card printing, to full cardholder processing services. They include all types of cards and card technologies allowing for card use at multiple channels (i.e. at ATMs, POS terminals, on the internet, and in-store – mobile payments in the future).
Acquirer processing services in the country range from technical acquirer processing, including POS terminal services, to full merchant processing services.
The leading processor in the Kyrgyz Republic is the Interbank Card Processing Centre (ICPC). All bank branches, ATMs, banking kiosks, and POS terminals are interconnected to the ICPC. Demir Bank operates its in-house processing center.
ICPC – NBKR holds a majority of the shares in ICPC, the Interbank Card Processing Centre, with 11 commercial banks initially taking up shares. As of 2023, shareholders of ICPC are 16 commercial banks, Kyrgyztelecom and United System of Instant Payments. At present, 23 operating commercial banks are direct participants in the ICPC. Four banks, which have their processing centers, are connected to the National Settlement System by Elkart payment cards as participants in the host-to-host connection. ICPC provides issuing and acquiring services to Elkart participant banks, as well as managing the infrastructure needed to develop the system.
In June 2020, Russia’s National Payment Card System, the operator of the Mir payment system, launched transfers from Mir cards to Elcart cards. This is the latest initiative to create a unified retail payment space for the CIS countries. In April 2024, the Interbank Processing Center announced it had severed ties between Mir and Elcart.
Online Payment Service Processors (PSPs)
Online payment service providers (PSPs) are specialized technical processors for all kinds of secure online payments and mobile payments. Some of them also offer virtual PSP platform services (VPSP) for bank acquirers who want to take advantage of a kind of ‘internet network processor’.
Online shops of merchants are directly connected by an API interface or a hosted payment page either to the internet payment gateway of a bank acquirer, or they are connected to multi-acquirers through a PSP.
PSPs usually partner with more than one card acquirer and payment initiation service provider. Core services offered by PSPs may include payment gateways to card acquirers and other online payment service providers, online payment processing, risk management services, and collection services for merchants.
Security technologies applied to ensure secure online card payments include EMV tokenization and strong 3D-Secure (MCSC, VbV, SafeKey) combined with one-time tokens. For card-less payment services, the security technologies applied include user ID/password combined with one-time tokens and online banking access with one-time TAN.
The leading online payment service processor in Kyrgyzstan is the ICPC.
Acquiring and Acceptance
In Europe, most acquirers offer multi-channel card acceptance and value-added merchant services at POS terminals, mobile MPOS terminals, and online shops. The leading acquirers usually offer their services cross-border.
In addition, innovative acquirers also offer the acceptance of cardless payment services based on partner agreements with the issuer of those payment services (e.g. account-based payments, wallets, prepaid products).
Most acquirers either operate their acquirer systems and ATM/POS/MPOS network service hubs, or they use the processing services of external processors. To service online merchants in Europe, they might operate their own PSP processing platforms or cooperate with one or more specialized online payment service processors (PSPs).
Since 2012, Eurasian acquirers have competed in their home markets, cross-border in the CIS region, cross-channel at POS terminals, and servicing online merchants. In 2016, innovative acquirers started to offer omnichannel and multi-payment acceptance.
By mid-2024, omnichannel acceptance includes the ability to service all channels (i.e. POS/MPOS terminals, mobile in-store, online shops, in-app), and to accept multiple payment means in all of these channels. Multi-payment services demanded by merchants include cards, online bank payments, online wallets, digital wallets, and prepaid products.
Outlook – By mid-2024, Kyrgyz acquirers face the following notable challenges:
- Rollout of contactless POS/MPOS terminals; Interchange++
- Complete acquirer service portfolio beyond cards, i.e. acceptance of card-less payment services
- Omni-channel payment acceptance: POS/MPOS, online, mobile in-app, mobile in-store
- Cross-border competition, omnichannel competition, finding PSP partners and PISP partners
- New security standards: e.g. 3D-Secure 2.3; tokenisation security, Strong Customer Authentication
All Kyrgyz issuer banks acquire the Elkart, Zolotaya Korona, Mastercard, and VISA card brands. From 2013, RSK Bank, Keremet Bank, and Kyrgyzkommertsbank accepted UnionPay cards.
In March 2020, JCB and Kyrgyzkommertsbank signed a license agreement for building JCB card acceptance and merchant acquiring operations in the Kyrgyz Republic. All JCB cardmembers traveling to Kyrgyz can use their JCB cards for purchases at merchants and for cash withdrawals at ATMs of Kyrgyzkommertsbank throughout the Kyrgyz Republic.
According to GIPI, the Kyrgyz IT agency, of the 23 commercial banks 13 are acquiring cards. The leading acquirers are RSK Bank, DemirBank, KICB, and Optima Bank. Table 4 illustrates the card brands accepted by the Kyrgyz acquirers as of mid-2024.
| 4 - Leading Acquirers in Kyrgyz Republic | ||
|---|---|---|
| Domestic Acquirers | Acceptance Brands offered | Owned by |
| RSK Bank | Mastercard, VISA, UnionPay; Electron; Elcard | State-owned |
| DemirBank | Mastercard, VISA; Electron; Elcard | 2017: investor (TR): 92.5%, HCBG Holdings (NL), 7.5% |
| KICB | Mastercard, VISA; Electron; Elcard | State: 10%, AKFED: 66%, Habib Bank (18%) |
| Optima Bank | Mastercard, VISA; Electron; Elcard | ATF Bank (KZ): 97.14% |
| Commercial Bank KG | Mastercard, VISA; Electron; Elcard | private investors (KG) |
| Keremet Bank | Mastercard, VISA, UnionPay; Electron; Elcard | State: 97.45%, FUGI and private investors: 2.55% |
| other acquirer banks | Mastercard, VISA; Electron; Elcard | other bank owners |
| Note: all Kyrgyz banks accept Zolotaya Korona cards co-badged Alai at their ATMs. | ||
| Source: PCM research | ||
ATM Terminal Infrastructure
All ATMs are interconnected to the national ATM network of the ICPC. Based on the Kyrgyz population of 5.8 million, ATM terminal density is at relatively low levels. With the government pushing hard for non-cash payments, the ATM network has doubled in the past five years.
Accepted card brands at most Kyrgyz ATMs are debit cards (Elkart, Zolotaya Korona, Mastercard, VISA, and Electron) and credit cards (Mastercard, VISA, American Express, Discover, JCB, and UnionPay). Accepted card brands at ATMs also included Cirrus, Plus, and Pulse. The EMV migration of ATM terminals continued.
According to the NBKR, there were 2,260 ATMs at the end-2023, up by 10.73% from 2022. NBKR does not provide ATM cash withdrawal statistics.
In 2023, the total ATM network figure represents only 315.6 per million inhabitants, an increase of 8.81% over 2022. Working in partnership with the NBK, Kyrgyz banks intend to install more ATMs and ‘cash-in’ service payment machines throughout the country, located on the premises of the largest domestic supermarket chain and at other strategic retail points.
| 5 - ATMs in Kyrgyz Republic | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | GR 5Y | CAGR 5Y | |
| ATMs with cash function | 1,712 | 1,856 | 1,910 | 2,041 | 2,260 | 10.73% | 42.77% | 7.38% |
| - Elcard system | 1,712 | 1,856 | 1,910 | 2,041 | 2,260 | 10.73% | 42.77% | 7.38% |
| - International systems | 676 | 779 | 783 | 795 | 812 | 2.14% | 39.28% | 6.85% |
| - UnionPay | 338 | 378 | 380 | 433 | 443 | 2.31% | na | na |
| - Zoltaya Korona system | 214 | 223 | 224 | 257 | 277 | 7.78% | 32.54% | 5.80% |
| # ATM Terminals per 1m capita - Kyrgyzstan | 262.4 | 279.7 | 276.3 | 290.0 | 315.6 | 8.81% | 27.37% | 4.96% |
| # ATM Terminals per 1m capita - EA10 total | 728.9 | 713.6 | 698.7 | 679.4 | 706.3 | 3.96% | -0.86% | -0.17% |
| Source: National Bank of Kyrgyz Republic. | ||||||||
The breakdown by payment service showed all 2,260 ATMs accepting Elkart cards, 277 ATMs accepting Zolotaya Korona cards, and 812 ATMs accepting VISA and Mastercard cards, with 443 ATMs also accepting UnionPay.
Among individual banks, RSK reported about 225 ATMs in 2023. Brands accepted in RSK ATMs are Elkart, Mastercard, VISA, RSK’s Alai Card, and Zolotaya Korona cards. Like some of the other Kyrgyz banks, RSK accepts Chinese UnionPay cards at its ATM network.
DemirBank reported 230 ATMs in 2023, nearly all at non-bank sites. Optima Bank had 170 ATMs in 2023.
KICB reported 160 ATMs in 2023, 22 of which were in its branches and the others mainly in supermarkets and a variety of other outlets, including Kyrgyz Telecom.
POS Terminal Infrastructure
As in other Eurasian countries, ‘cash-in’ machines or payment terminals, (often classified as POS terminals by the central banks) form an important part of the infrastructure. While the services offered differ from country to country, they may include getting information about the bank; depositing cash on a card account; card account balance inquiries; and making payments, particularly bill payments. Cash-in machines often accept dollars as well as the national currency.
All POS terminals are interconnected to the national POS network of the ICPC. With the government pushing hard for non-cash payments, the POS network in Kyrgyz Republic has grown by 10.65% in the past five years.
Accepted card brands at most Kyrgyz POS terminals are debit cards (Elkart, Zolotaya Korona, Mastercard, Maestro, VISA, and Electron), and credit cards (Mastercard, VISA, American Express, Discover, and JCB). UnionPay and JCB cards are accepted at selected merchant outlets frequented by tourists. The EMV migration of POS terminals continued.
The Central Bank of Kyrgyz Republic reported 20,477 POS terminals, up by 48.99% compared to 2022, of which 2,532 POS terminals were installed at bank branches. Since 2016, contactless POS terminals have grown in number. NBKR does not provide POS payment statistics.
Elkart cards were accepted at 23,009 POS terminals. Zolotaya Korona cards were accepted at 4,436 POS terminals. Visa and Mastercard cards were accepted at 8,341 POS terminals. UnionPay cards were accepted at 4,538 POS terminals.
In 2019, government amendments to consumer rights were introduced, including mandating legal entities to install POS terminals to make payments for goods and services in non-cash form.
| 6 - POS Terminals in Kyrgyz Republic | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | GR 5Y | CAGR 5Y | |
| POS terminals | 10,046 | 11,114 | 12,067 | 13,067 | 13,744 | 20,477 | 48.99% | 103.83% | 15.31% |
| - Elcard system | 10,046 | 11,114 | 12,067 | 13,067 | 16,252 | 23,009 | 41.58% | 129.04% | 18.03% |
| - International systems | 4,846 | 5,268 | 6,110 | 6,454 | 7,753 | 8,341 | 7.58% | 72.12% | 11.47% |
| - UnionPay | 1,237 | 1,245 | 1,415 | 1,552 | 3,652 | 4,538 | 24.26% | na | na |
| - Zolotaya Korona system | 1,342 | 1,231 | 1,097 | 1,248 | 1,847 | 4,436 | 140.17% | 230.55% | 27.01% |
| # POS Terminals per 1m capita - Kyrgyzstan | 1,572.3 | 1,703.7 | 1,818.2 | 1,890.2 | 1,952.9 | 2,859.2 | 46.40% | 81.85% | 12.70% |
| # POS Terminals per 1m capita - EA10 total | 12,921.5 | 15,041.9 | 17,950.0 | 19,042.0 | 21,172.0 | 23,259.9 | 9.86% | 80.01% | 12.48% |
| Source: National Bank of Kyrgyz Republic. | |||||||||
In 2023, DemirBank reported more than 3,600 POS terminals. Optima Bank reported over 1,000 POS terminals in 2023. Keremet Bank operates a POS network of 168 terminals.
MPOS Terminals – Small and mobile merchants have started to use their smartphones and tablet PCs as mini-POS+ECR devices with added chip reader dongles. Also, merchants can initiate MOTO-like card payments on smartphones and tablets by downloading a payment app.
In December 2012, Square clones like iZettle, SumUp, and others launched their services in Europe and also are expected to support Kyrgyz merchants on demand.
Remote Internet Payments – Cards & More
The Kyrgyz Republic is a small emerging e-commerce market in Eurasia with people starting to purchase online. E-commerce is developing rapidly in the Kyrgyz Republic and is expected to reach $185 million by 2023. E-commerce penetration in the Kyrgyz Republic was estimated at 8% in 2021. At the end of 2021, the number of web POS terminals and their agents amounted to 94,856.
Internet Use – According to official statistics, in 2023, the level of internet penetration in the Kyrgyz Republic achieved 79.8% (2022: 77.9%), and approximately 40% of Kyrgyz internet users have used the internet to purchase in online shops. Remote payments are initiated from various types of internet-capable devices, e.g. PCs, tablets, or smartphones.
In 2023, mobile penetration was estimated at 163% but only 7% of the population used online mobile banking services.
Cards on the Internet (CNP) – All cards with international brands are accepted in Kyrgyz online shops after the merchant has signed an acceptance contract. Kyrgyz banks have started to issue prepaid cards and virtual cards for internet use only.
Leading online shops in the Kyrgyz Republic have started to offer remote payments on cards based on security standards like SSL with CVC2/CVV2 code and 3D-Secure (Mastercard SecureCode, Verified by VISA). Further, web-based MOTO-like services are offered to Kyrgyz merchants by their acquirers. In February 2019, solution provider Gpayments partnered with the Kyrgyz Interbank Processing Centre (IPC) to introduce 3D-Secure (3DS) authentication technologies for e-commerce in the Kyrgyz Republic.
The e-Payment Mix in Kyrgyz Republic – In 2023, remote payment means offered by the merchants in online shops were dominated by cards followed by card-on-delivery.
Remote Payments on the Mobile Internet – Since 2013, online buyers have been able to use their smartphones for online shopping, with mobile purchases enabled by mobile app, or by scanning a 2D QR-code displayed, for example, in a newspaper or at a bus station. Thus, remote mobile payments are executed by either using the e-payment page of the mobile shop or by using the payment apps of a PSP or an acquirer.
Also, Kyrgyz merchants can download a payment app from their acquirer to initiate MOTO payments with cards and/or online direct debits. Leading Kyrgyz merchants are believed to consider their apps including loyalty functions (e.g. e-vouchers, discounts, outlet finder, QR-code scanning) in the future.
Mobile Payments – Overview
In 2023, 11.07 million of the Kyrgyz were active mobile phone subscribers, 40% of whom own a smartphone. In 2023, the mobile penetration rate was estimated at 163.1%. Tablet penetration is growing from a low level. Growth rates in the mobile telecom market have slowed considerably owing to market saturation.
Since 2013, the next generation of mobile services and payments has included disruptive technologies (1D-barcodes, QR-code, Bluetooth BLE, and NFC).
Mobile initiatives in the Kyrgyz Republic typically include new technologies either as initiating form factors to bridge to online shops on the internet (1D-barcodes, QR-code, NFC) or to enable contactless access to the retail POS outlet (1D-barcodes, QR-code, BLE, Bluetooth Low Energy, NFC Stickers, Mobile NFC Phones) e.g.:
- To enable access to online shops for any type of mobile devices (e.g. tablets, iPhones, Androids)
- To enable mobile services and payments initiated by consumers’ tablets or smartphones at ATMs, vending machines, smart posters, and POS terminals in retail outlets
- To enable small merchants’ tablets and smartphones by adding MPOS terminal devices for payment services.
The Kyrgyz m-Payment Mix – There are no official m-payment mix statistics, but bank information indicates that the domestic m-payment mix is similar to the e-payment mix (see Remote Payments on the Internet section).
Mobile Payment Initiatives
In 2024, the various European mobile payment initiatives can be grouped into
- Non-bank players like FinTechs, payment initiation service providers (PISPs), and account information service providers (AISPs) launch digital payment services beyond cards
- Innovative banks that launch mobile banking apps allowing for card-less in-app payments and payments on the internet
- Leading banks that pilot mobile HCE NFC payments with the card credentials stored on file in the cloud (HCE)
- Banks partnering with mobile network operators to offer mobile SIM SE NFC payments on cards with the card credentials stored in a secure element on the SIM card of the mobile device
- Innovative retailers that offer their apps with loyalty and payment functions to their consumers.
Demir Bank launched a mobile banking service for its clients in 2018 which includes biometric factor (fingerprint) authentication, QR code payment options, and push notifications for balances. In 2018, Optima Bank allowed customers to execute money transfers linked to a VISA card using SMS messages.
In October 2019, the NBKR and mobile network operators agreed on the joint development of mobile services to promote non-cash payments and ensure the integration of mobile applications with electronic public services. Users of mobile applications had to be authenticated by October 2020, with unidentified wallets rejected after this date.
In January 2020, the NBKR announced it would explore the creation of an alternative mobile payment service to Samsung Pay and Apple Pay, which are not yet present in the country. Given that NFC technology is already in place, the NBKR is looking at infrastructure capability to host such a service, and the feasibility of commercial banks to operate the service given that they will bear the burden of costs.
Central Bank Digital Currencies (CDBC) – The Digital Cash Challenge
Central bank digital currency (CBDC), also called digital fiat currency or digital base money, is a digital currency issued by a national central bank (NCB), rather than by a commercial bank. It is also a liability of the NCB and denominated in the sovereign currency, as is the case with physical banknotes and coins.
All CBDCs are under the authority of the respective national central bank, and they are part of the domestic cash payment ecosystem. Rather than a new currency, CBDC is a form of central bank electronic money that could be used by households and businesses to make payments. In addition, most CBDC implementations will likely not use or need any sort of distributed ledger such as a blockchain.
Unlike “retail CBDC,” which is generally designed as a central bank liability universally accessible to individuals and businesses within a jurisdiction’s financial system, “wholesale CBDC” refers to a digitized central bank liability designed for sizable (generally interbank) transactions, and for which access is limited to certain financial institutions.
National Central Banks (NCBs) have been providing trusted money to the public for hundreds of years as part of their public policy objectives. Trusted money is a public good. It offers a common unit of account, store of value, and medium of exchange for the sale of goods and services and settlement of financial transactions. Providing cash for public use is an important tool for central banks. Yet the world is changing.
Even before COVID-19, cash used for payments was declining fast, and convenient digital payments have grown enormously in volume and diversity. To evolve and pursue their public policy objectives in a digital world, central banks are actively researching the pros and cons of offering a digital currency to the public, a “general purpose” CBDC.
Central banks’ interest in CBDC has increased as a potential means of delivering their public policy objectives. Profound, ongoing changes across finance, technology, and society, as well as the recent COVID-19 crisis, provided additional impetus for the research of, and experimentation related to, CBDCs.
CBDC is a national digital currency issued by the central bank that is expected to replace or coexist with fiat money and hold the same value. Mobile money, on the other hand, utilizes existing commercial banking-based accounting to manage customer wallet balances based on an exchange with cash or lines of credit and loans.
CBDC is a direct liability on the central bank as it is the main issuer of the currency, whereas digital money is the liability of commercial banks and other authorized financial institutions using funds on account. Although some implementation approaches propose that CBDC can be implemented in either an indirect or hybrid form, its liability remains on the respective national central bank.
National CBDC Initiatives
In May 2022, the NBKR approved the concept of a digital KGS but has yet to commit to any practical developments. In 2023, the National Bank of the Kyrgyz Republic (NBKR) made significant progress on the digital KGS (also known as the digital som). The NBKR initiated the development of a prototype for the digital som and received proposals from 12 companies to test this prototype in an experimental sandbox environment.
Unregulated Cryptocurrency Products – Background
Regulators and national central banks are challenged by unregulated independent cryptocurrency products. Whereas CBDCs are under the authority of the central bank, almost all cryptocurrencies are decentralized, and not controlled or managed by any central authority.
Financial market authorities and the national central banks are not in favour of unregulated cryptocurrency products, and they see them as a systematic risk to the financial system. Their intention to regulate the respective cryptocurrency exchange platforms has gained momentum.
Cryptocurrencies, originally designed as a store of value, are digital assets, developed and maintained on decentralized blockchains, and they can be used as a medium of exchange or payment method. Bitcoin and Ethereum are the most popular forms of cryptocurrencies worldwide used by consumers and businesses for transactions.
As of 2022, over 400 million people worldwide used cryptocurrencies, with merchants and businesses in more sectors accepting it as a form of payment. The major payment schemes VISA and Mastercard, PayPal, and along with a growing number of financial institutions, have launched services allowing consumers to purchase or use cryptocurrencies for a range of applications.
According to a 2022 Deloitte survey, around two-thirds (64%) of surveyed merchants indicated that their customers have a significant interest in using digital currencies for payments, and 83% expect consumer interest in digital currencies for payments to increase or significantly increase over the next 12 months.
In addition, merchants are motivated by the prospect of enabling immediate access to funds (40% of respondents), taking advantage of blockchain-based innovations in decentralised digital finance (39%), and allowing in-house management of the revenue cycle/treasury/finance department (39%).
Over half (54%) of large retailers (with revenues of $500 million and up) have invested more than $1 million in enabling digital currency payments, while only 6% of small retailers (with revenues of under $10 million) did so.
A 2022 survey from Checkout.com found a sharp rise in people wanting to use cryptocurrencies as a means of payment, with 40% of 18-35-year-old consumers citing their desire to experiment with using crypto as a payment method, up from less than 30% in 2021. Meanwhile, over 80% of businesses say offering crypto has attracted new customers, leading to a decrease in chargebacks, while just over 60% have seen higher authorisation rates accepting crypto payments.
Current estimates put cryptocurrency ownership in Europe at around 18 million people.
In August 2021, the government of the Kyrgyz Republic introduced draft regulation frameworks for crypto exchanges. The proposed regulations aim to establish the legal status of crypto exchanges, functions, responsibilities, and compliance requirements, including the necessary registration with the unified state register. The rules also require crypto exchange service providers to ensure measures to counter illicit activities like money laundering and terrorism financing.
In 2023, the Kyrgyz Republic continued to develop its regulatory framework for cryptocurrency exchanges. The National Bank of the Kyrgyz Republic (NBKR) has been actively working on implementing the draft regulations introduced in 2021. These regulations aim to establish the legal status of crypto exchanges, define their functions and responsibilities, and ensure compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
Market Size and Dynamics
Cards in Issue
Issuance of Elkart cards began in 2007 and by end-2009, the program accounted for 41.7% of cards issued. In 2023, there were 3,472,400 Elkart cards, or 50.40% of the cards total. The growth of Elkart cards in 2023 was 15.31% higher compared to 2022, mainly due to government measures implemented to increase non-cash state payments like social benefits.
Since 2012, NBKR has reported Alai cards as Zolotaya Korona cards because of the respective co-branding arrangements.
At end-2023, with 6.89 million cards issued to a population of 7.16 million, card penetration remained improved to 74% from 55% with 0.96 (2022:0.74) cards per capita. Again, NBKR said that the recent expansion of the number of bank cards issued was mainly due to payroll card projects.
Based on NBKR figures, there were 6,890,300 cards in Kyrgyz Republic by end-2023. This represented an increase of 31.59% from 2022 and was equivalent to 0.96 cards per capita.
International cards, mostly VISA Electron-branded, amounted to 48.27% of the total while Zolotaya Korona cards are the third-largest single category in the Kyrgyz market (1.34% in 2023), with stellar growth between their introduction in October 2010 and 2017, after which numbers have fallen to reach 92,100 in 2023. UnionPay cards have been issued since 2014 and now account for 21,000 cards as at end-2023, up from a low of 5,000 in 2020.
| 7 - Cards in Kyrgyz Republic | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | GR 5Y | CAGR 5Y | |
| Elcard cards of national system | 1,578,600 | 1,985,400 | 2,269,200 | 3,011,300 | 3,472,400 | 15.31% | 186.90% | 23.47% |
| International cards | 914,700 | 1,007,700 | 1,374,900 | 2,128,000 | 3,325,800 | 56.29% | 372.82% | 36.44% |
| - VISA | 851,300 | 934,800 | 1,285,100 | 2,046,400 | 3,249,500 | 58.79% | 384.57% | 37.11% |
| - Mastercard | 54,400 | 67,900 | 70,100 | 56,700 | 55,300 | -2.47% | 144.69% | 19.60% |
| - UnionPay | 9,000 | 5,000 | 19,700 | 24,900 | 21,000 | -15.66% | 105.88% | 15.54% |
| Local cards | ||||||||
| Zolotaya Korona | 487,300 | 395,200 | 113,000 | 96,700 | 92,100 | -4.76% | -82.25% | -29.23% |
| Total cards issued | 2,980,600 | 3,388,300 | 3,757,100 | 5,236,000 | 6,890,300 | 31.59% | 183.25% | 23.15% |
| Payment cards per capita - Kyrgyzstan | 0.46 | 0.51 | 0.54 | 0.74 | 0.96 | 29.31% | 152.70% | 20.37% |
| Payment cards per capita - EA10 total | 1.50 | 1.65 | 1.82 | 2.09 | 2.42 | 15.79% | 72.86% | 11.57% |
| Note: some figures are taken from NBKR charts and are therefore estimates; salary/payroll cards are included in the figure for total cards; Demir 24 payment cards were replaced by VISA cards in 2009. From 2014, UnionPay cards are issued. | ||||||||
| Source: National Bank of Kyrgyz Republic. | ||||||||
Card Fraud
Card fraud is one of the most fascinating aspects of the payments industry, not least because it is relentless and mutating. EMV implementation and 3D-Secure, combined with Strong Customer Authentication (SCA), have done much to reduce domestic losses from lost and stolen cards in Europe. However, the war against fraud losses and the changing face of fraud continues to be a threat to the payments industry, including the Kyrgyz Republic.
The global card fraud challenges are Card-Not-Present fraud (CNP), cross-border fraud, and counterfeiting on non-EMV cards. CNP fraud accounted for 80% of the total value of card fraud losses in 2020. In 2017, a new payment fraud category was fraud losses on contactless card payments. International card fraud continues to be smaller in scale than domestic card abuse but is proportionately far more common. And of course, fraudulent cross-border transactions on cards continue to grow on all purchase channels.
Losses from card fraud on the internet and cross-border fraud on domestic cards have grown significantly. Following EMV implementation, card fraud has moved increasingly to countries where POS terminals or online shops have not yet been migrated to EMV and SCA, respectively, and to cross-border fraud with compromised cards.
The breakdown of card fraud losses by method of compromise already indicates the importance of distinguishing between domestic and cross-border fraud losses. The method of compromise covers how fraudsters obtain payment cards or card details. Notable methods of compromise in a complex payment world are CNP fraud based on theft of card credentials and card lost and stolen fraud followed by growing ID fraud and by cross-counterfeit fraud.
The main method of compromise responsible for losses in many European countries is now the theft of card credentials. A high proportion of these card fraud losses are caused by the growth in e-commerce, and still the lack of use of Strong Customer Authentication methods such as 3D-Secure.
In a post-data-breach world, identity information, payment credentials, account credentials, and responses to security questions are widely available for purchase in bulk. Complete fraud exploits and zero-day attacks are also easily available on the black market for outright purchase or as a hosted / fully managed service.
In the digital payments world and having the changing face of fraud in mind, there are significant challenges for card-issuing banks, payment service providers, and their supporting processors.
According to the NBKR, in 2022, the card fraud loss rate in Kyrgyz Republic was not significant.
As most POS card transactions are authorized online to issuers, acquirer fraud rates in the Kyrgyz Republic are under control except for offline vending machines, e-commerce, and other hotspots.
Credit card fraud prevention measures have been pushing 3D-Secure, updating bank fraud prevention systems and real-time, and implementing more rule-based fraud control mechanisms. Also, issuers offer PIN selection at ATMs and SMS notifications to inform cardholders about the use of their credit card.
Card Use
The Kyrgyz card payments market is at an early stage of development. Until the end of 2014, the ATM withdrawals value continued to grow faster than the POS payments value.
Recorded Alai card transactions fell sharply in 2012 and are zero from 2013, while transactions on Zolotaya Korona cards bounded ahead. This follows NBKR figures, which lump Alai and Zolotaya Korona together and reflect the use of Alai cards to access money transfers sent mainly from Russia via Zolotaya Korona, the dominant cross-border network.
NBKR figures showed 94.05 million ATM withdrawals for 2023, up 32.5% from 2022, and amounting to 46.1% of total card transactions, down from 55.5% in 2022. The total ATM withdrawals value was 78.5% of total transactions in 2023, down from 83.6% in 2022. Withdrawals on VISA cards accounted for 32.8% of ATM transactions by number and 44% by value. The ATV per cash withdrawal accounted for KGS 6,893.23 (11.6% from 2022) or $78.46 as calculated in USD.
| 8 - Number of ATM Withdrawals in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (000s) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Withdrawals on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 4,400.1 | 3,604.4 | 703.8 | 293.6 | 87.2 | -70.3% | -57.3% |
| - Mir | 8.8 | 18.6 | 66.1 | 215.2 | 95.8 | -55.5% | na |
| Withdrawals on international cards: | |||||||
| - VISA | 10,422.6 | 10,829.8 | 15,150.0 | 18,985.2 | 30,809.1 | 62.3% | 30.2% |
| - Mastercard | 914.4 | 1,123.3 | 1,468.8 | 1,159.1 | 596.5 | -48.5% | -0.2% |
| - Other | 106.4 | 69.4 | 75.1 | 52.0 | 64.7 | 24.4% | -13.4% |
| of which AMEX | 6.8 | 3.8 | 0.0 | 0.0 | 0.2 | na | -49.0% |
| of which UnionPay | 99.6 | 65.6 | 75.1 | 52.0 | 64.5 | 24.0% | -12.7% |
| Withdrawals on national cards: | |||||||
| - Elcard | 20,677.4 | 25,119.1 | 35,105.4 | 50,141.9 | 62,242.8 | 24.1% | 30.7% |
| - UPI Elcard | 97.4 | 90.3 | 88.9 | 88.0 | 92.7 | 5.3% | -8.2% |
| Total | 36,733.5 | 40,924.3 | 52,733.2 | 70,987.0 | 94,053.5 | 32.5% | 24.3% |
| - % of total transactions | 76.8% | 69.8% | 62.6% | 55.5% | 46.1% | -16.8% | -11.1% |
| Cash withdrawals per capita | 5.63 | 6.17 | 7.63 | 10.09 | 13.13 | 30.2% | 21.5% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: Demir24 cards were replaced by VISA cards in 2009. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
| 9 - Value of ATM Withdrawals in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (KGS millions) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Value on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 14,256.9 | 11,516.6 | 4,310.9 | 3,046.4 | 1,044.5 | -65.7% | -46.4% |
| - Mir | 62.1 | 135.4 | 448.7 | 1,757.1 | 744.3 | -57.6% | na |
| Value on international cards: | |||||||
| - VISA | 97,818.6 | 113,723.8 | 163,489.7 | 167,675.9 | 285,256.6 | 70.1% | 29.9% |
| - Mastercard | 8,101.7 | 9,798.2 | 11,711.7 | 10,495.4 | 8,118.8 | -22.6% | 9.8% |
| - Other | 830.3 | 617.3 | 637.0 | 591.0 | 558.0 | -5.6% | -12.0% |
| of which AMEX | 32.9 | 19.6 | 0.6 | 1.7 | 0.7 | -58.8% | na |
| of which UnionPay | 797.4 | 597.7 | 636.4 | 589.3 | 557.3 | -5.4% | na |
| Value on national cards: | |||||||
| - Elcard | 98,125.4 | 114,847.9 | 156,261.6 | 253,896.0 | 351,489.7 | 38.4% | 35.2% |
| - UPI Elcard | 347.5 | 383.6 | 467.5 | 458.3 | 562.2 | 22.7% | -2.0% |
| Total withdrawals value | 220,372.8 | 251,640.1 | 337,964.1 | 438,511.1 | 648,332.1 | 47.8% | 28.3% |
| - % of total transactions | 92.3% | 93.1% | 89.9% | 83.6% | 78.5% | -6.1% | -3.6% |
| ATV per cash withdrawal (KGS) | 5,999.23 | 6,148.92 | 6,408.94 | 6,177.34 | 6,893.23 | 11.6% | 3.2% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: UPI Elcard cards are Elcard cards co-badged UnionPay. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
Card Payments – VISA cards dominate POS payments, accounting for 59.3% of total POS payments by number and 59.7% by value in 2023. Mastercard, though only 2.2% of total POS payments by number, accounted for 2.6% by value. By volume and value, Elkart is gaining ground on international scheme cards, recording 78.5% in 2023, while Elkart POS value rose 196.65%.
In 2023, there were 109.85 million POS payments, up by 92.7% from 2022, and amounting to 53.87% of total card transactions, a jump of about 9.34 ppts compared to 2022. The total card payment value was 21.52% of total transactions in 2023. The total payment value amounted to KGS 177.80 billion (+106.95% Vs 2022). The ATV per card payment accounted for KGS 1,618.31 (+7.38% Vs 2022) or $18.42 in USD.
| 10 - Number of Card Payments in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (000s) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Payments on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 90.7 | 41.4 | 17.4 | 5.1 | 0.8 | -84.3% | -67.3% |
| - Mir | 2.8 | 5.4 | 20.3 | 380.0 | 325.7 | -14.3% | na |
| Payments on International cards: | |||||||
| - VISA | 6,924.5 | 7,964.9 | 15,594.5 | 28,364.8 | 65,101.7 | 129.5% | 71.5% |
| - Mastercard | 474.6 | 527.5 | 738.3 | 775.8 | 740.3 | -4.6% | 22.0% |
| - American Express | 3.3 | 0.5 | 0.4 | 1.4 | 2.2 | 57.1% | -8.3% |
| - UnionPay | 3.6 | 1.5 | 2.7 | 6.3 | 12.9 | 104.8% | 19.0% |
| Payments on national cards: | |||||||
| - Elcard | 3,555.8 | 9,128.3 | 15,165.1 | 27,832.6 | 43,976.5 | 58.0% | 96.6% |
| - UPI Elcard | 21.3 | 18.0 | 13.8 | 12.9 | 12.7 | -1.6% | -7.5% |
| Total card payments | 11,073.8 | 17,682.1 | 31,532.2 | 56,998.9 | 109,847.1 | 92.7% | 76.5% |
| - % of total transactions | 23.16% | 30.17% | 37.42% | 44.54% | 53.87% | 21.0% | 26.2% |
| Card payments per capita | 1.70 | 2.66 | 4.56 | 8.10 | 15.34 | 89.4% | 72.6% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: UPI Elcard cards are Elcard cards co-badged UnionPay. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
| 11 - Value of Card Payments in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (KGS millions) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Value on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 50.8 | 25.7 | 13.3 | 3.2 | 8.5 | 165.63% | -39.86% |
| - Mir | 0.6 | 3.0 | 13.6 | 843.4 | 600.0 | -28.86% | na |
| Value on international cards: | |||||||
| - VISA | 13,035.1 | 12,433.8 | 23,138.7 | 45,037.7 | 106,042.5 | 135.45% | 66.70% |
| - Mastercard | 1,196.8 | 1,044.4 | 1,612.9 | 2,330.9 | 4,573.9 | 96.23% | 41.80% |
| - American Express | 60.6 | 12.9 | 17.5 | 49.8 | 52.0 | 4.42% | -4.48% |
| - UnionPay | 7.0 | 2.3 | 4.1 | 9.2 | 18.6 | 102.17% | 12.77% |
| Value on national cards: | |||||||
| - Elcard | 3,932.3 | 5,226.4 | 12,957.8 | 38,439.0 | 67,027.4 | 74.37% | 109.36% |
| - UPI Elcard | 35.1 | 21.5 | 18 | 29.8 | 44.1 | 47.99% | 8.67% |
| Total card payments value | 18,317.7 | 18,767.0 | 37,762.3 | 85,899.6 | 177,767.0 | 106.95% | 74.73% |
| - % of total transactions | 7.67% | 6.94% | 10.05% | 16.38% | 21.52% | 31.37% | 31.21% |
| ATV per card payment (KGS) | 1,654.15 | 1,061.36 | 1,197.58 | 1,507.04 | 1,618.31 | 7.38% | -1.03% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: UPI Elcard cards are Elcard cards co-badged UnionPay. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
Card Use per Capita
In 2023, there were 13.13 (+30.2% Vs 2022) cash withdrawals on cards per capita and 15.34 payments on cards per capita, a growth rate of 73.3% over 2022.
Debit Card Use
NBKR does not report details on debit cards by number and debit card use.
Credit Card Use
NBKR does not report details on debit cards by number and debit card use.
Leading Card Issuer Details
RSK Bank specializes in salary cards and also issues its proprietary Alai Card cards to individuals. Personal cards, which can be used for payments, deposits, and cash withdrawals, cost 390 soms ($8) on opening the accounts, with additional cards available for family members at 350 soms ($7.40).
RSK Bank has launched a range of VISA cards, with Electron, Classic, Business, and Gold programmes. From 2014, it also issued UnionPay cards.
In May 2013, RSK noted that its Alai Card system had been operational for 16 years. RSK reported 155,000 Alai cardholders and 600 enterprises providing salary projects, with infrastructure comprising 126 cash machines. Alai cards are co-badged Zolotaya Korona and can be used in Russia, Ukraine, Belarus, and Armenia as well as the Kyrgyz Republic.
RSK has an agreement with the Social Fund of the Kyrgyz Republic to enable pensions and other payments due to pensioners to be paid free of charge onto Alai Pension Cards. In 2019, RSK launched a promotion with “Red” Gas Stations offering a 5% discount for those spending more than KGS 3,000 with its cards in “Red” filling stations. The bank had a network of more than 250 ATMs, 460 POS terminals, and 50 cash terminals in 2023.
DemirBank has rolled out VISA card programmes, with benefits including a range of discounts for payments at the bank’s extensive POS terminals network. At Narodniy supermarkets, for example, DemirBank VISA cardholders are eligible for a discount of 5% when they pay with VISA Classic or VISA Gold credit cards, or 3% with VISA Electron debit cards. Its top-of-the-range product is the Card Plus Platinum VISA. From October 2015, Demirbank issued contactless cards with the payWave function, now accepted at its POS terminals.
From 2016 onwards, the bank launched a variety of cash-back programmes and other marketing incentives to encourage card use. These and similar loyalty programmes have helped to drive the rise in POS payments recorded since 2011. DemirBank service points include 228 ATMs and 3,600 POS terminals as of 2023.
KICB has issued about 40,000 VISA cards in four programs – Electron, Classic, Business, and Gold – as well as a range of Elkhart cards – Personal, Corporate, and Salary; VISA Classic cards can also be used as salary cards. KICB is the only bank in Kyrgyzstan issuing payment cards with individual designs. From 2015, KICB issued prepaid cards. From March 2016, KICB issued Elkhart cards co-badged as UnionPay cards.
KICB is a principal member of VISA International. KICB cardholders are served by the largest service network consisting of more than 200 devices. Effective 2019, KICB now also issues VISA salary cards.
Optima Bank issues VISA and Electron cards and payroll cards branded Elkhart cards. In 2015, the bank launched UnionPay cards.
Commercial Bank KG issues VISA, Electron, Mastercard, as well as national Elkhart cards and Zoltaya Korona cards. In July 2014, the bank officially received the status of Principal Member of the VISA International payment system. In 2015 the bank became a Mastercard scheme member and successfully launched the acquiring service for Mastercard in its ATMs. In November 2015, the bank was the first in the Kyrgyz Republic to issue contactless cards with the PayPass or payWave function.
The total number of cards issued by the end of 2019 amounted to 803,139, compared to 669,443 cards in 2018. Elkhart cards comprised 316,541 units and VISA cards comprised 214,803. The bank issued 133,696 new cards in 2019. The bank did not update card numbers during 2021.
In 2018, the bank launched a money transfer service on VISA cards between banks in the Kyrgyz Republic. In addition, customers can now credit Zolotaya Korona money transfers sent from CIS countries to VISA and Elkhart cards. In 2019, the bank launched VISA Infinite and Platinum premium cards and also serviced the Russian national payment system MIR cards at ATMs and POS terminals.
Keremet Bank (formerly Rosinbank) – issues Elkhart, VISA, Electron, and UnionPay cards. It started issuing Elkhart cards co-branded with UnionPay. In 2014, the bank reported 50,000 cardholders but gave no subsequent update.
Kyrgyzkommertsbank (KKB) has the highest status of a principal member of VISA and Mastercard schemes. It issues cards branded VISA, Mastercard, Maestro, and Elkhart. It also has the Principal Member status of the UnionPay payment system.
International Money Transfers
The NBKR continued registering active money transfer system operators in the Kyrgyz Republic. In 2023, the NBKR had 33 operators registered as money transfer systems (14 international and 19 local).
As noted earlier, Zolotaya Korona (‘Golden Crown’) dominates the remittances business in the Kyrgyz Republic. Other important players are Unistream, Migom, Contact, Western Union, and Leader.
As a result of the volume of inflows from Russia, the inter-regional payment system Zolotaya Korona “Golden Crown” dominates the remittances business in Kyrgyz Republic, with a market share close to 50%.
As Table 12 shows, the Kyrgyz Republic is a continued substantial beneficiary of remittances, with net inflows of $2.14 billion in 2023, increasing by 24.2% from 2022. Remittances from Russia were 99.24% of the total inflow and 98.33% of the total outflow. The only other significant remittance inflows were from the US and Kazakhstan.
According to the World Bank, remittances from Russia to the Kyrgyz Republic account for roughly 30% of the country’s entire GDP.
In July 2016, Tempo Money Transfer and Unistream built on a collaborative venture that has led to an increase of 11,000 pay-out locations for Tempo in Europe. Clients can now send money from Tempo’s locations in Germany and France and collect cash in Unistream’s pay-out locations, in Albania, Belarus, Bulgaria, Georgia, Kyrgyzstan, Moldova, Romania, and Tajikistan, as well as Turkey and Uzbekistan.
In May 2020, Commercial Bank launched a card remittance service with Russia’s Sberbank. To send money, Commercial Bank customers can use a Sberbank card number or mobile phone number associated with the card to make remittances to and from Russia through Commercial Bank’s mobile app.
Data Tables
| Key Statistics 2023 | |
|---|---|
| Population | 7.16 million, 0.96 cards per capita |
| Cards | Elkarts: 3,472,400 VISA branded cards: 3,249,500 Mastercard branded cards: 55,300 UnionPay branded cards: 21,000 Zolotaya Korona cards: 92,100 Total cards: 6,890,300 |
| Card Transactions | Payments: 109.85 million, value: KGS 177.77 billion ($2023.39 million) Cash withdrawals: 94.05 million; value: KGS 648.33 billion ($7.38 billion) Total transactions: 203.90 million; value: KGS 826.1 billion ($9.69 billion) |
| POS Terminals | 20.477 |
| POS Payments | 109.8 million |
| ATMs | 2,260 |
| ATM Withdrawals | 94.05 million |
| Market Overview | |
|---|---|
| Payment Organisation | Interbank Card Processing Centre (ICPC). |
| Domestic Card Brand | Elkart cards (Elkart), from 2016, also co-badged UnionPay Interregional Zolotaya Korona cards, many co-badged AlaiCard |
| Market Structure | The Kyrgyz card payments market is at an early stage of development and suffered a setback with the upheavals of 2010. VISA is the dominant international brand. Zolotaya Korona is the interregional payment card system mostly used for money transfers. Some cards are co-branded Alai-Card. The National Bank of Kyrgyz Republic, the central bank, supervises the retail payments system and plays the lead role in its development. 16 Kyrgyz banks have foreign participation in their share capital, including banks from Turkey, Pakistan, and Kazakhstan. With the withdrawal of UniCredit in March 2013, there is no major Western bank presence. Foreign capital accounted for 24.5% of banking sector capital at end-2023 while the sector’s overall assets increased by 13.9%. |
| Notable Market Trends | Rollout of Elkhart cards, contactless cards, and POS terminals. Elkhart card numbers grew in 2023 by 15.3% from 2022, mainly due to government measures to increase non-cash state payments like social benefits. The value of Elkhart payments rose by 73.4% in 2023. |
| Major Card Issuers | RSK Bank, DemirBank, KICB, Optima Bank. |
| Major Card Acquirers | RSK Bank, DemirBank, KICB, Optima Bank. |
| Major Card Processors | Interbank Card Processing Centre (ICPC). |
| 1 - Main Banks in Kyrgyz Republic (end-2023) | |||||
|---|---|---|---|---|---|
| Bank | Ownership | Total Assets (KGS m) | Assets ($m) | Market share % | Branches |
| Aiyl Bank | State-owned | 109,619 | 1247.7 | 17.8% | 38 |
| RSK Bank | State-owned | 62,998 | 717.1 | 10.3% | 53 |
| Commercial Bank KG | private investors (KG) | 60,177 | 684.9 | 9.8% | 18 |
| Optima Bank | ATF Bank (KZ): 97.14% | 59,421 | 676.3 | 9.7% | 21 |
| KICB | State: 10%, AKFED: 66%, Habib Bank (18%) | 55,673 | 633.7 | 9.1% | 22 |
| DemirBank | investor (TR): 92.5%, HCBG Holdings (NL), 7.5% | 55,438 | 631.0 | 9.0% | 14 |
| Halyk Bank KG | Halyk Bank 100% | 18,061 | 205.6 | 2.9% | 10 |
| Kompanion Bank | Mercy Corps KG (65%), FMO (NL): 17.5%, Triodos Invest: 17.5% | 19,431 | 221.2 | 3.2% | 17 |
| Keremet Bank | State: 97.45%, FUGI and private investors: 2.55% | 14,433 | 164.3 | 2.3% | 10 |
| Finca Bank KG | Finca Bank International (US) | 10,495 | 119.5 | 1.7% | 24 |
| Kyrgyzkommertsbank (KKB) | HS Holdings 52.9%, Individuals and legal enttities (KG): 47.1% | 8,798 | 100.1 | 1.4% | 3 |
| other banks | 139,729 | 1590.4 | 22.7% | 90 | |
| Total (all banks) | 614,275 | 6,991.8 | 100.0% | 320 | |
| Note: In October 2019 Rosinbank was renamed Keremet Bank. NBKR became the main owner of the Bank's shares in October 2018. | |||||
| Note: BTA Bank was acquired by Bakai Bank in January 2020. | |||||
| Source: bank annual reports. | |||||
| 2 - Average Exchange Rates | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| 1 EUR in KGS | 78.1568 | 88.3661 | 100.1894 | 88.8240 | 95.0164 |
| 1 USD in KGS | 69.7893 | 77.3461 | 84.6408 | 84.1162 | 87.8561 |
| Source: National Bank of Kyrgyz Republic. | |||||
| 3 - Leading Card Issuers in Kyrgyz Republic | ||
|---|---|---|
| Domestic Issuers | Issued Card Brands | Owned by |
| Optima Bank | VISA, UnionPay; VISA Debit; Elcard | ATF Bank (KZ): 97.14% |
| RSK Bank | Mastercard, VISA, UnionPay; VISA Debit, Debit Mastercard, Elcard | State-owned |
| DemirBank | VISA; VISA Debit; Elcard | 2017: investor (TR): 92.5%, HCBG Holdings (NL), 7.5% |
| KICB | VISA;VISA Debit; Elcard; UnionPay | State: 10%, AKFED: 66%, Habib Bank (18%) |
| Commercial Bank KG | VISA; VISA DEbit; Elcard, Zolotaya Korona | private investors (KG) |
| Keremet Bank | VISA, UnionPay; VISA Debit; Elcard | State: 97.45%, FUGI and private investors: 2.55% |
| Kyrgyzkommertsbank | Mastercard, VISA, AmExp, UnionPay; Debit Mastercard; Elcard | 2017: Sawada Holdings 52.9%, private investor (KG): 47.1% |
| Aiyl Bank | Elcard | State-owned |
| Bakai Bank KG | VISA; VISA Debit; Elcard | Bakai Bank (KZ) |
| Halyk Bank KG | VISA; VISA Debit; Elcard | Halyk Bank (KZ) |
| Kompanion Bank | VISA;VISA Debit; Elcard | Mercy Corps KG (65%), FMO (NL): 17.5%, Triodos Invest: 17.5% |
| other banks | VISA; VISA Debit; Elcard | other bank owners |
| Note: many Kyrgyz Bank issue Zolotaya money transfer cards co-badged AlaiCard. | ||
| Note: In January 2020, Bakai Bank acquired BTA Bank. | ||
| Source: PCM research | ||
| 4 - Leading Acquirers in Kyrgyz Republic | ||
|---|---|---|
| Domestic Acquirers | Acceptance Brands offered | Owned by |
| RSK Bank | Mastercard, VISA, UnionPay; Electron; Elcard | State-owned |
| DemirBank | Mastercard, VISA; Electron; Elcard | 2017: investor (TR): 92.5%, HCBG Holdings (NL), 7.5% |
| KICB | Mastercard, VISA; Electron; Elcard | State: 10%, AKFED: 66%, Habib Bank (18%) |
| Optima Bank | Mastercard, VISA; Electron; Elcard | ATF Bank (KZ): 97.14% |
| Commercial Bank KG | Mastercard, VISA; Electron; Elcard | private investors (KG) |
| Keremet Bank | Mastercard, VISA, UnionPay; Electron; Elcard | State: 97.45%, FUGI and private investors: 2.55% |
| other acquirer banks | Mastercard, VISA; Electron; Elcard | other bank owners |
| Note: all Kyrgyz banks accept Zolotaya Korona cards co-badged Alai at their ATMs. | ||
| Source: PCM research | ||
| 5 - ATMs in Kyrgyz Republic | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | GR 5Y | CAGR 5Y | |
| ATMs with cash function | 1,712 | 1,856 | 1,910 | 2,041 | 2,260 | 10.73% | 42.77% | 7.38% |
| - Elcard system | 1,712 | 1,856 | 1,910 | 2,041 | 2,260 | 10.73% | 42.77% | 7.38% |
| - International systems | 676 | 779 | 783 | 795 | 812 | 2.14% | 39.28% | 6.85% |
| - UnionPay | 338 | 378 | 380 | 433 | 443 | 2.31% | na | na |
| - Zoltaya Korona system | 214 | 223 | 224 | 257 | 277 | 7.78% | 32.54% | 5.80% |
| # ATM Terminals per 1m capita - Kyrgyzstan | 262.4 | 279.7 | 276.3 | 290.0 | 315.6 | 8.81% | 27.37% | 4.96% |
| # ATM Terminals per 1m capita - EA10 total | 728.9 | 713.6 | 698.7 | 679.4 | 706.3 | 3.96% | -0.86% | -0.17% |
| Source: National Bank of Kyrgyz Republic. | ||||||||
| 6 - POS Terminals in Kyrgyz Republic | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | GR 5Y | CAGR 5Y | |
| POS terminals | 10,046 | 11,114 | 12,067 | 13,067 | 13,744 | 20,477 | 48.99% | 103.83% | 15.31% |
| - Elcard system | 10,046 | 11,114 | 12,067 | 13,067 | 16,252 | 23,009 | 41.58% | 129.04% | 18.03% |
| - International systems | 4,846 | 5,268 | 6,110 | 6,454 | 7,753 | 8,341 | 7.58% | 72.12% | 11.47% |
| - UnionPay | 1,237 | 1,245 | 1,415 | 1,552 | 3,652 | 4,538 | 24.26% | na | na |
| - Zolotaya Korona system | 1,342 | 1,231 | 1,097 | 1,248 | 1,847 | 4,436 | 140.17% | 230.55% | 27.01% |
| # POS Terminals per 1m capita - Kyrgyzstan | 1,572.3 | 1,703.7 | 1,818.2 | 1,890.2 | 1,952.9 | 2,859.2 | 46.40% | 81.85% | 12.70% |
| # POS Terminals per 1m capita - EA10 total | 12,921.5 | 15,041.9 | 17,950.0 | 19,042.0 | 21,172.0 | 23,259.9 | 9.86% | 80.01% | 12.48% |
| Source: National Bank of Kyrgyz Republic. | |||||||||
| 7 - Cards in Kyrgyz Republic | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | GR 5Y | CAGR 5Y | |
| Elcard cards of national system | 1,578,600 | 1,985,400 | 2,269,200 | 3,011,300 | 3,472,400 | 15.31% | 186.90% | 23.47% |
| International cards | 914,700 | 1,007,700 | 1,374,900 | 2,128,000 | 3,325,800 | 56.29% | 372.82% | 36.44% |
| - VISA | 851,300 | 934,800 | 1,285,100 | 2,046,400 | 3,249,500 | 58.79% | 384.57% | 37.11% |
| - Mastercard | 54,400 | 67,900 | 70,100 | 56,700 | 55,300 | -2.47% | 144.69% | 19.60% |
| - UnionPay | 9,000 | 5,000 | 19,700 | 24,900 | 21,000 | -15.66% | 105.88% | 15.54% |
| Local cards | ||||||||
| Zolotaya Korona | 487,300 | 395,200 | 113,000 | 96,700 | 92,100 | -4.76% | -82.25% | -29.23% |
| Total cards issued | 2,980,600 | 3,388,300 | 3,757,100 | 5,236,000 | 6,890,300 | 31.59% | 183.25% | 23.15% |
| Payment cards per capita - Kyrgyzstan | 0.46 | 0.51 | 0.54 | 0.74 | 0.96 | 29.31% | 152.70% | 20.37% |
| Payment cards per capita - EA10 total | 1.50 | 1.65 | 1.82 | 2.09 | 2.42 | 15.79% | 72.86% | 11.57% |
| Note: some figures are taken from NBKR charts and are therefore estimates; salary/payroll cards are included in the figure for total cards; Demir 24 payment cards were replaced by VISA cards in 2009. From 2014, UnionPay cards are issued. | ||||||||
| Source: National Bank of Kyrgyz Republic. | ||||||||
| 8 - Number of ATM Withdrawals in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (000s) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Withdrawals on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 4,400.1 | 3,604.4 | 703.8 | 293.6 | 87.2 | -70.3% | -57.3% |
| - Mir | 8.8 | 18.6 | 66.1 | 215.2 | 95.8 | -55.5% | na |
| Withdrawals on international cards: | |||||||
| - VISA | 10,422.6 | 10,829.8 | 15,150.0 | 18,985.2 | 30,809.1 | 62.3% | 30.2% |
| - Mastercard | 914.4 | 1,123.3 | 1,468.8 | 1,159.1 | 596.5 | -48.5% | -0.2% |
| - Other | 106.4 | 69.4 | 75.1 | 52.0 | 64.7 | 24.4% | -13.4% |
| of which AMEX | 6.8 | 3.8 | 0.0 | 0.0 | 0.2 | na | -49.0% |
| of which UnionPay | 99.6 | 65.6 | 75.1 | 52.0 | 64.5 | 24.0% | -12.7% |
| Withdrawals on national cards: | |||||||
| - Elcard | 20,677.4 | 25,119.1 | 35,105.4 | 50,141.9 | 62,242.8 | 24.1% | 30.7% |
| - UPI Elcard | 97.4 | 90.3 | 88.9 | 88.0 | 92.7 | 5.3% | -8.2% |
| Total | 36,733.5 | 40,924.3 | 52,733.2 | 70,987.0 | 94,053.5 | 32.5% | 24.3% |
| - % of total transactions | 76.8% | 69.8% | 62.6% | 55.5% | 46.1% | -16.8% | -11.1% |
| Cash withdrawals per capita | 5.63 | 6.17 | 7.63 | 10.09 | 13.13 | 30.2% | 21.5% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: Demir24 cards were replaced by VISA cards in 2009. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
| 9 - Value of ATM Withdrawals in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (KGS millions) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Value on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 14,256.9 | 11,516.6 | 4,310.9 | 3,046.4 | 1,044.5 | -65.7% | -46.4% |
| - Mir | 62.1 | 135.4 | 448.7 | 1,757.1 | 744.3 | -57.6% | na |
| Value on international cards: | |||||||
| - VISA | 97,818.6 | 113,723.8 | 163,489.7 | 167,675.9 | 285,256.6 | 70.1% | 29.9% |
| - Mastercard | 8,101.7 | 9,798.2 | 11,711.7 | 10,495.4 | 8,118.8 | -22.6% | 9.8% |
| - Other | 830.3 | 617.3 | 637.0 | 591.0 | 558.0 | -5.6% | -12.0% |
| of which AMEX | 32.9 | 19.6 | 0.6 | 1.7 | 0.7 | -58.8% | na |
| of which UnionPay | 797.4 | 597.7 | 636.4 | 589.3 | 557.3 | -5.4% | na |
| Value on national cards: | |||||||
| - Elcard | 98,125.4 | 114,847.9 | 156,261.6 | 253,896.0 | 351,489.7 | 38.4% | 35.2% |
| - UPI Elcard | 347.5 | 383.6 | 467.5 | 458.3 | 562.2 | 22.7% | -2.0% |
| Total withdrawals value | 220,372.8 | 251,640.1 | 337,964.1 | 438,511.1 | 648,332.1 | 47.8% | 28.3% |
| - % of total transactions | 92.3% | 93.1% | 89.9% | 83.6% | 78.5% | -6.1% | -3.6% |
| ATV per cash withdrawal (KGS) | 5,999.23 | 6,148.92 | 6,408.94 | 6,177.34 | 6,893.23 | 11.6% | 3.2% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: UPI Elcard cards are Elcard cards co-badged UnionPay. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
| 10 - Number of Card Payments in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (000s) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Payments on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 90.7 | 41.4 | 17.4 | 5.1 | 0.8 | -84.3% | -67.3% |
| - Mir | 2.8 | 5.4 | 20.3 | 380.0 | 325.7 | -14.3% | na |
| Payments on International cards: | |||||||
| - VISA | 6,924.5 | 7,964.9 | 15,594.5 | 28,364.8 | 65,101.7 | 129.5% | 71.5% |
| - Mastercard | 474.6 | 527.5 | 738.3 | 775.8 | 740.3 | -4.6% | 22.0% |
| - American Express | 3.3 | 0.5 | 0.4 | 1.4 | 2.2 | 57.1% | -8.3% |
| - UnionPay | 3.6 | 1.5 | 2.7 | 6.3 | 12.9 | 104.8% | 19.0% |
| Payments on national cards: | |||||||
| - Elcard | 3,555.8 | 9,128.3 | 15,165.1 | 27,832.6 | 43,976.5 | 58.0% | 96.6% |
| - UPI Elcard | 21.3 | 18.0 | 13.8 | 12.9 | 12.7 | -1.6% | -7.5% |
| Total card payments | 11,073.8 | 17,682.1 | 31,532.2 | 56,998.9 | 109,847.1 | 92.7% | 76.5% |
| - % of total transactions | 23.16% | 30.17% | 37.42% | 44.54% | 53.87% | 21.0% | 26.2% |
| Card payments per capita | 1.70 | 2.66 | 4.56 | 8.10 | 15.34 | 89.4% | 72.6% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: UPI Elcard cards are Elcard cards co-badged UnionPay. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||
| 11 - Value of Card Payments in Kyrgyz Republic | |||||||
|---|---|---|---|---|---|---|---|
| (KGS millions) | 2019 | 2020 | 2021 | 2022 | 2023 | GR 22/23 | CAGR 5Y |
| Value on local cards: | |||||||
| - Zolotaya Korona (co-badged Alai) | 50.8 | 25.7 | 13.3 | 3.2 | 8.5 | 165.63% | -39.86% |
| - Mir | 0.6 | 3.0 | 13.6 | 843.4 | 600.0 | -28.86% | na |
| Value on international cards: | |||||||
| - VISA | 13,035.1 | 12,433.8 | 23,138.7 | 45,037.7 | 106,042.5 | 135.45% | 66.70% |
| - Mastercard | 1,196.8 | 1,044.4 | 1,612.9 | 2,330.9 | 4,573.9 | 96.23% | 41.80% |
| - American Express | 60.6 | 12.9 | 17.5 | 49.8 | 52.0 | 4.42% | -4.48% |
| - UnionPay | 7.0 | 2.3 | 4.1 | 9.2 | 18.6 | 102.17% | 12.77% |
| Value on national cards: | |||||||
| - Elcard | 3,932.3 | 5,226.4 | 12,957.8 | 38,439.0 | 67,027.4 | 74.37% | 109.36% |
| - UPI Elcard | 35.1 | 21.5 | 18 | 29.8 | 44.1 | 47.99% | 8.67% |
| Total card payments value | 18,317.7 | 18,767.0 | 37,762.3 | 85,899.6 | 177,767.0 | 106.95% | 74.73% |
| - % of total transactions | 7.67% | 6.94% | 10.05% | 16.38% | 21.52% | 31.37% | 31.21% |
| ATV per card payment (KGS) | 1,654.15 | 1,061.36 | 1,197.58 | 1,507.04 | 1,618.31 | 7.38% | -1.03% |
| Note: collaboration between Elcard and Mir (Russia) has allowed the acceptance of Mir cards in the Kyrgyz Republic from 2019. | |||||||
| Note: UPI Elcard cards are Elcard cards co-badged UnionPay. | |||||||
| Source: National Bank of Kyrgyz Republic. | |||||||