By the close of 2026, Kazakhstan aims to initiate cross-border QR-code payment capabilities with China, enhancing the ability for citizens from both nations to transact via mobile payments during their travels. This development is part of a broader initiative by Kazakhstan’s National Bank, which is working to establish similar cross-border payment services with a total of 11 countries, including India, the United Arab Emirates, Kyrgyzstan, and Uzbekistan. Expansion plans for these systems with additional countries are anticipated to commence around mid-2027.
This collaboration with China stands to broaden the role of the yuan beyond its traditional trade and investment uses, extending into the realm of everyday consumer purchases. Such an initiative underscores the increasing financial ties between Beijing and nations within Central Asia, a relationship that has been significantly bolstered by the Belt and Road Initiative. The forthcoming system is a natural progression from existing payment collaborations between Kazakhstan and China.
In fact, in 2024, Kazakhstan’s financial technology company Kaspi.kz formed a partnership with Alipay, allowing Kaspi users to engage in mobile transactions while in China. This move represents a strategic effort by China to promote the yuan’s international usage, aiming to fortify cross-border payment mechanisms and lessen reliance on the US dollar. Beijing has been actively expanding its digital yuan and QR-based payment systems as part of this strategy.
The initiative between Kazakhstan and China is poised to enhance regional financial connectivity significantly. It is expected to drive increased adoption of yuan-based payment systems throughout Central Asia, thereby reinforcing the economic interdependence within the region. Such initiatives are indicative of a larger trend of financial integration and cooperation among Central Asian countries and China, aligned with their shared economic objectives.