Kazakhstan is set to introduce cross-border QR-code payments with China by the end of 2026, enabling citizens from both nations to make seamless mobile transactions while traveling between the two countries. This initiative marks the extension of Kazakhstan’s efforts to establish cross-border payment services with 11 countries, including China, India, the United Arab Emirates, Kyrgyzstan, and Uzbekistan. While the system with China is expected to be operational by 2026, agreements with other nations are slated to begin rolling out from mid-2027.
The collaboration between Kazakhstan and China is poised to elevate the yuan’s role beyond its traditional use in trade and investment, incorporating it into everyday consumer transactions. This move is indicative of an increasing financial partnership between China and Central Asian countries, aligning with Beijing’s Belt and Road Initiative. The strategic initiative aims to bolster regional financial connectivity while facilitating the broader use of the yuan in Central Asia.
Kazakhstan and China are building upon their existing payment cooperation framework, exemplified by a 2024 partnership between Kazakhstan’s fintech company Kaspi.kz and China’s Alipay. This collaboration allowed Kaspi users to make mobile payments within China, setting the stage for the broader QR-code payment system now being planned. The upcoming system is expected to streamline financial transactions for individuals traveling between the two nations, enhancing convenience and economic interaction.
China’s push to promote the yuan’s international use is part of its broader strategy to enhance cross-border payments and reduce reliance on the US dollar. The expansion of digital yuan and QR-based payment systems is a key component of this strategy. By advancing the Kazakhstan-China QR-code payment initiative, both countries aim to reinforce financial ties and promote the yuan’s integration into regional payment systems, thus fostering greater economic collaboration in Central Asia.