since 2025, the amount of cash that Kazakhstan's residents have withdrawn from banks and financial institutions.
Cash Still King for Some Kazakhstanis
In a surprising twist, it appears that some Kazakhstanis are clinging onto their cash. Despite a nationwide push towards cashless payment options, the country's citizens have been pulling out more cash than ever before. In the first quarter of 2025, a whopping 6 trillion tenge was withdrawn through ATMs, representing a 6.6% increase compared to the same period last year.
Digital payments have been on the rise, but cash still seems to be a preferred method of transaction for many. The Association of Kazakhstan Financiers (AFK) reports that the volume of cashless transactions grew by an impressive 22.4%, reaching 40.3 trillion tenge in the first quarter of 2025. This accounts for 87.1% of the total turnover of cards (cashless operations and cash withdrawals).
However, the growing preference for cash in Kazakhstan may be indicative of the need for cash in remote areas and the high share of the shadow economy in the country. Many analysts believe that the high number of cash withdrawals may be due to these factors.
When comparing the average transaction sizes, the average check for cashless transactions increased by 8.1% to 13,300 tenge, while the average withdrawal from ATMs increased by a significant 15.8% to 109,900 tenge. This growth is likely due to an increase in citizens' incomes (including pensions in 2025) and inflation.
Intriguingly, the number of payment cards in Kazakhstan continues to climb. In 2024, it was reported that there were around 80 million cards in the country, equating to approximately four cards per person. The North Kazakhstan region, where cashless payments account for less than 75% of the turnover of bank cards, has the highest demand for cash. Meanwhile, cashless payments account for more than 90% of transactions in Almaty and the Almaty region.
The ongoing digital transition in Kazakhstan has led to a decrease in the gap between regions with high and low cashless share, indicating a gradual equalization in the use of digital infrastructure. Despite this, there are still many areas where cash usage remains high, especially in rural regions with less fintech penetration.
As the long-term trend towards cashless payments seems to have slowed, it's important to remember that having too many open bank cards might put you in a risky position for banks. To stay informed about the risk factors, you can read more here.
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Businesses in Kazakhstan may need to adapt to the continued preference for cash among some citizens, as the volume of cashless transactions only accounts for 87.1% of the total turnover of cards. The finance sector might have to address the high demand for cash in remote areas and the high share of the shadow economy to encourage a seamless digital transition. Additionally, as the number of open bank cards increases, individuals should be mindful of potential risks associated with having too many cards.
