By the end of 2026, Kazakhstan is set to implement a new system allowing cross-border QR-code payments with China, enabling citizens from both nations to use mobile payments during their travels. This development marks a significant enhancement in financial cooperation between the two countries, reflecting broader efforts for regional economic integration.
The National Bank of Kazakhstan has revealed plans to extend cross-border payment services to 11 countries, including economic powerhouses like China and India, as well as regional neighbors such as the United Arab Emirates, Kyrgyzstan, and Uzbekistan. The initiative with China is anticipated to be operational by 2026, while similar systems with other nations are projected to commence from mid-2027.
This collaboration with China could lead to an increased use of the yuan in everyday transactions, expanding its role beyond traditional trade and investment avenues. This move aligns with China’s strategic push to promote the yuan’s international use, part of a broader effort to enhance cross-border payment systems and lessen reliance on the US dollar. The initiative also underscores the growing financial ties fostered by Beijing through its Belt and Road Initiative, aimed at strengthening connectivity with Central Asian countries.
The proposed system builds upon existing payment partnerships between Kazakhstan and China. Notably, in 2024, Kazakhstan’s Kaspi.kz teamed up with Alipay, facilitating mobile payments for Kaspi users in China. Such collaborations are pivotal in paving the way for more integrated payment solutions across the region.
The Kazakhstan-China payment initiative could significantly bolster regional financial connectivity, potentially increasing the adoption of yuan-based payment systems throughout Central Asia. As China continues to expand the use of its digital yuan and QR-based payment systems globally, this collaboration with Kazakhstan signifies a crucial step towards achieving broader financial integration in the region.