The payment system in Kazakhstan

Размещено на http://www.allbest.ru/

Bankovnн institut vysokб љkola Praha

Banking Management

The Payment System in Kazakhstan

Bachelor's degree work

Author: Amir Gimadiyev

Banking Management

Supervisor: Ing. Marcela Soldбnovб

Praha April 2015

Declaration

I declare that I elaborated my bachelorґs degree work independently and I stated all the literature used.

I attest by my signature that the submitted electronic version of the work is identical with its printed version, and I am aware of the fact that the work will be archived in the library of the BIVЉ, and further, made accessible to third persons through the internal database of electronic university works.

Annotation

The research objective is the organization and development of payment system in the Republic of Kazakhstan. The theoretical and methodological basis of work was made by the provisions containing in the works of Kazakh and foreign economists. The logic and structure of the thesis are defined by the purpose and objective research. The thesis consists of introduction, three chapters, conclusion and bibliography.

Key words:

Payment system, foreign economists, the National Bank, banking terminals

Content

payment card kazakhstan market

Introduction

Selected method of elaboration

1. Theoretical aspects of payment systems research

2. The development of payment system in the Republic of Kazakhstan

2.1 The concept of payment system

2.1.1 Market electronic banking services

2.1.2 Internet-banking system

2.1.3 Mobile banking

2.2 Development rations card payment system in the Republic of Kazakhstan and the modern condition of the market payment card

3. Interbank payment operations in the Republic of Kazakhstan

3.1 Interbank money-transfer system

3.2 Interbank Clearing System

Conclusion

List of literature

Annexes

Introduction

The relevance of this topic is determined by the role of the payment system in the economic life of any country. This topic is relevant today because interbank payments, including foreign banks, are widespread. Banking institutions are very diverse. In a modern society banks are engaged in various types of operations, they not only provide cash flow and credit relations, but also finance the national economy, sale and purchase of securities and brokerage services. Financial and credit institutions provide advice, are involved in discussing legislative and economic programs, lead the statistics and carry out the various operations with the individuals and legal entities. The role of payment system as the main mediator in cash flows has increased.

The economics of any state is a widely branched network of complex relationships within the entities. The basis for these relationships is billing and payments in the process. The country's payment system is an essential element of the market economy, which are implemented through various economic opportunities.

Payment system between the various counterparties and economic agents, ensuring the regularity and continuity of payments are essential conditions for the functioning of the economy. Cash and payments arrangements carried out mainly by banks, are reflected almost all kinds of economic relations in society. Organization of correspondence relations is one of the problems of development banking.

Selected method of elaboration

The research objective is the organization and development of payment system in the Republic of Kazakhstan.

For this goal the following tasks have been set:

• to consider the concept of payment system and stages of formation of payment system in the Republic of Kazakhstan;

• to investigate forms of use of payment cash cards, their classification and the main international payment systems;

• to track stages of the development of payment system of Kazakhstan and to estimate a current state of the market of payment cards in the republic;

• to explore world experience of the development and improvement of payment systems;

• to consider the prospects for development of payment system in Kazakhstan.

The theoretical and methodological basis of work was made by the provisions containing in the works of Kazakh and foreign economists. The logic and structure of the thesis are defined by the purpose and objective research. The thesis consists of introduction, three chapters, conclusion and bibliography.

1. Theoretical aspects of payment systems research

The effectiveness function of financial markets and the banking sector of the economy depend on the payment system of the country. Its criteria, consistent with needs of the economy, are speed of the payments, the reliability and the degree of automation systems, the management of the risks in the implementation of the banking operations. An efficient payment system is built by the factors that affect its development, principles that ensure the interests of its subjects, and an adequate tool.¹

Payment system constitutes the institutional an orderly combination of economic relations, folding between the various economic actors in balance-of-payments. Payment system comes as the Institute for optimizing transaction costs in the process of implementing the payments.

The factors that affect the development of payment system are based on the existence of a close relationship between payment systems with financial markets and on the results of the analysis processes of transformation, financial markets, identified the following main groups of factors, which determine the development payment systems: information technology, global, structural and institutional.²

The traditional treatment effectiveness to the payment system can be used only in the most general terms. The specificity payment system determines the need for clarifying approaches to assessment of its effectiveness. Payment system efficiency can be evaluated on the basis an integral criterion "risks are the costs, the quality of the services".

With the deployment market reforms in Kazakhstan that has evolved in a planned economy a centralized mechanism for the implementation of the payment was reorganization. The process of establishing a payment system in the period market transformation, Kazakhstan economy includes three main stages: reform, stabilization and upgrades.

Currently, payment system of Kazakhstan is composed of two relatively distinct segments, demonstrating payment system of the National Bank in the Republic of Kazakhstan and private payment systems. In the last decade significant progress has been achieved in the development payment system: there has been a virtually complete the transition from paper to electronic transfer and processing payment information, decreased time transfer of funds, improved management of financial risk.

Principles of building an effective payment system is based on the provision.

Tools for establishing an effective payment system have been classified on the basis of the signs of functional accessories, the analytical and operational.

The economy of a state is a network of diverse for a large number of incoming in her economic entities.⁴

The payment system for the financial scope of a country's economy is difficult to overestimate.

During the market transformation of the economy of Kazakhstan payment system of the country, was built with support for the system carries the USSR. Reform the beginning of the 1990s has been directed at creating a large number of non-state commercial banks.

There is a need to study the qualitative and functional characteristics payment system. It is tasks and role in transformation economy of Kazakhstan.

Analysis has shown that various researchers are the essence of the electronic payment system defined the aim of the study and methodological approach used.

The payment system of Kazakhstan

Introducing a complex mechanism, which includes a set of hardware and software tools, payment system, is meant to be a bridge between the population, economic agents, second-tier banks and the National Bank. The payment system has to ensure the timely and efficient money transfer between a consumer and a provider of goods and services, which contributes to timely completion of the implementation of the commitments made as a result of economic and financial activities. The efficiency of the operation of financial markets and the banking sector of the economy to a large extent depends on the existing payment system in the country.⁵

The proclamation of the sovereignty of Kazakhstan, the transition to a market economy and the structural reform of the economy countries have given rise to a new form of economic and financial activity states, including and the banking system. Reforming banking system in turn led to the need for the building of a new payment system, different reliability, security, and efficiency, allowing for payments quickly and with minimal risk.

The process of modernizing payment systems Kazakhstan began in 1994, and has undergone several important phases.⁶ The first step in the realization of this task was the development of an appropriate legal and regulatory framework. The Law of the Republic of Kazakhstan "On payments and transfers money", signed on 29 June 1998, has become a fundamental instrument governing the issues of the implementation of the payments and transfers money to the territory of the Republic of Kazakhstan.

In 1995 - 1996 in the implementation of the payments and transfers money played an important role Almaty clearing house and the regional clearing house, created by the regional branch offices of the National Bank. Data clearing house had worked on the method multilateral netting arrangements, as well as the application of various methods of risk management, in particular debit and credit restrictions, the system queues. However, the disadvantage that the system has been the need for the exchange between banks parties in the end of the day payment orders on paper. This was due to a lack of experience and regulatory embodied notion of "e-mail accounts".

Since 1996, Almaty clearing the Chamber has been reorganized in Kazakhstan centre interbank payments - state enterprise on the fortunes of reference, founder and an authorized body which is the National Bank.⁷ Improved legal and regulatory framework, installation of modern equipment and software has made it possible to work with the electronic payment orders, which does not require confirmation on paper-based media.

Another activity that contributes to the development payment system was a centralizing correspondent account of the second level banks in the central office of the National Bank of the Republic of Kazakhstan, which was carried out in the period from October to November 1998. This transfer allowed the National Bank promptly to carry out the functions expected bank and bank banks, to increase effectiveness of monitoring functions over the banking system and the payments system, to carry out translation support accounting correspondent accounts to work in real-time.

One of the key points in the development of the payment system was the establishment in 1996, based on the first prototype system major payments, running in real-time. ⁸ All commercial banks and the National Bank have centralized system. In a short time the system major payments (UPC) has become more popular due to electronic document management solutions, not requiring the paper confirm, impotence and reliability money transfers, as well as the high level security.

As a result of the work to bring payment systems of Kazakhstan in conformity with international standards, as well as with a view to meet the needs banking and financial sectors in the effective and safe payment system with the final calculations on the same day, in February 2000, the system began to function interbank money transfers (IMAS), which is a systemically important payment system of Kazakhstan, functioning in real-time (RTGS).⁹ For any country building RTGS system has the highest priority in the financial sphere. For this system describes sustainable functioning banking system of the state. Throughout the world there are generally accepted standards, establishing appropriate requirements to build such systems.

The IMAS was the next important stage in the development of Kazakhstan payment system, which resulted in improved mechanisms for monitoring liquidity risk management system banks. Users IMAS are the National Bank, the Treasury of the Ministry of Finance of the Republic of Kazakhstan, the State centre for payment of pensions, in "Evrica press", second-tier banks, the stock exchange, the securities and non-bank financial organizations of the United Nations.

The System retail payments during the course of its existence in 1995, also has undergone significant changes. In order to improve the quality of the services provided in this area banking activities, the National Bank from 1 August 1999, in the territory of the Republic of Kazakhstan was terminated activities clearing houses in regional branch offices of the National Bank. The system data had been replaced by multilateral netting system counter-obligations, running without the prior deposit of funds with the final calculation net positions of participants in the IMAS, which has received the name interbank clearing system.

Thus, at present, in the territory of the Republic of Kazakhstan has the following payment systems - IMAS and interbank clearing system. Payments are carried out with the use of modern and forward-looking technology and technical means. The available technologies enable payments to be made with the highest degree of efficiency.

Each payment system has its own purpose and focus on certain markets for goods and services. The IMAS are large, high-priority and urgent local payments, the financial sector operations, the calculation which is provided immediately after income instructions from the user to the system (with the availability of funds by the user in the system), in other words in real time mode. In this regard, the system account for the largest share of the total cash local payment (for example, in 2007, the UNODC was processed 98.4 % of the total volume of cashless payment and 36.1 % of total).

Number of cards issued by Kazakh banks until March 1, 2008 is 5.8 million units. This number increased 16 times in last 10 years.¹⁰

The amount and number of payments using a payment card issuers Kazakhstan in 2007, amounted to 135.1 billion KZT and 6.0 million transactions, respectively, that dozens times exceeds the level ten years ago. Today infrastructure market cards submitted 7484 trading enterprises, host to the payment card, 16702 POS-terminals, located in both trade points, and the second-tier banks, 4607 ATMS. A positive trend was the growth of number of trading terminals, ATMS, trade organizations, as well as the growth of number of cashless payments with the use of cards in recent years in comparison with the year 2008.¹¹

The National Bank, in conjunction with the Government of the Republic of Kazakhstan takes measures to create the conditions for the further development of infrastructure service payment cards. An important role in the promotion of the development of payment cards has also played active second-tier banks.

It should be noted that payment systems of Kazakhstan commended by international financial organizations, as well as on the results of the most recent evaluation hoping the experts of the World Bank and the International Monetary Fund recognized GIFP the 10 key principles, elaborated by the Committee on payment calculation systems Bank for International Settlements for systemically significant payment systems.

However, the National Bank shall work toward further improvement of existing payment systems, in particular the retail cashless payment system with a view to improve the effectiveness of their operation, reliability, and security. Measures of the National Bank for Development payment systems are aimed at improvement of operating efficiency, reliability, speed and timeliness payment operations while reducing risks, as well as the creation of conditions for use of the various innovative instruments of payment.

2. The development of payment system in the Republic of Kazakhstan

Payment system is the system providing free passing of payments, which represents:¹²

? the combination of arrangements concerning repayment of the obligations accepted by the economic subjects getting material or financial resources, services;

? a set of methods and means by which the final settlement is reached;

? network of organizations and institutions involved in the procedure of the calculation.

2.1 The concept of payment system

Introducing a complex mechanism, which includes a set of hardware and software tools, payment system is meant to be a bridge between the population, businesses, second-tier banks and the National Bank. The role of payment system is to ensure the timely and efficient transfer of money between a consumer and supplier of goods and services, which contributes to the timely completion of the implementation of the commitments undertaken as a result of economic and financial activities. Therefore the effectiveness of the functioning of financial markets and the banking sector of the economy is largely dependent on the existing payment system in the country.

The proclamation of the sovereignty of Kazakhstan, the transition to a market economy and the structural reform in the economy led to the creation of new forms of economic and financial life of the State, including the banking system. Reforming banking system in turn led to the need for the building of a new payment system, different reliability, security, and efficiency, allowing for payments quickly and with minimal risk.

One of the objective conditions effective economic activities of actors in the market is the timely and guaranteed payment for products (services).¹³

Currently, this problem has attracted particular attention in view of the increased activity in the stock and currency markets, transactions in which constitute significant amounts of money, a very tangible even when compared to the total volume of industrial and commercial operations. The growth of improper compensatory payments has led to a greater concern about the risks associated with their implementation. The main task payment system is timely, reliable, and cost-effective movement of funds between the actors of the parties.

Designed and acting in the Republic of Kazakhstan the national payment system has the advantage of payment systems of other countries of the Commonwealth of Independent States (CIS) and may be offered as a base for the establishment of a common scheme first for Eurasian Customs Union (EACU) and then the CIS.

The existing in the Republic of Kazakhstan payment system is compatible with all international payment systems. Its technical and software is constantly being updated, there is a constant search for and the introduction of new advanced technologies.

Since the 1990s in Kazakhstan has undertaken the development of two-tier banking system and its inherent mechanisms (watch figure No. 1). ¹⁴ The emergence of new forms of organization of the credit relations, the progressive tool financial and credit institutions to market relations, the financial crises of recent years, and their effects have led to the need to study changes that are taking place in the financial and credit relations, in part of the analysis of the processes institutional restructuring banking system. The banking system and the establishment of an effective system commercial banks, was in favour an essential part of a set of measures for the further development of a market-based relations.



The national Bank of Kazakhstan

Banking institutions Commercial banks (insurance companies,

pawnshops and others)

Figure No. 1 A two-tier banking system of the Republic of Kazakhstan

Source: compiled by the author by “Payment system of the Republic of Kazakhstan. [online], [cit. 2015-02-03]. Available from WWW: <//www.nazbank.kz>.”

The emergence of new forms of credit relations organization, the gradual adaptation of financial and credit institutions to a market economy, the recent financial crises and their consequences necessitated the study of changes in financial and credit relations in part of the analysis of processes institutional reorganization of the banking system. Reforming the banking system and the establishment of an effective system of commercial banks is the most important part of a measures complex on further development of market relations.

Kazakhstan has the following payment systems:¹⁵

? system of gross calculations in real-time (interbank system transfers money);

? corporate actions system (system retail payments).

System of gross payments in real-time on the territory of the Kazakhstan has been in operation since August 1996 on base of the Kazakhstan Interbank Settlement Centre of the National Bank of Kazakhstan (KISC). Previously it was called the System of Large Payments (SLP).

The National Bank of Kazakhstan work was carried out to improve SLP and bringing it to the systems gross calculations, existing in the developed countries. At the end of 2000, SLP has been transformed into the ISMT, which carries out calculations in real-time (RTGS -Real Time Gross Settlement) is within the available funds on the account users and meets all the basic requirements of international financial organizations to the system of payments" on a gross basis. For any country building RTGS has the highest priority in the financial sphere. For this system describes sustainable functioning banking system of the state. The ISMT is the performance irrevocable and final payments in the national currency with a guarantee for a period of one operational day, using up to the total amount of the held in accounts users ISMT of the National Bank. The ISMT are large and priority payments.

Sending and receiving messages in the ISMT are only electronically.

The ISMT procedures are followed to ensure information security, approved by KISC, which are aimed at identity fact transfer of electronic messages and error detection when their gear. KISC and users offer accounting and control messages sent and received e-mail messages. All e-mail messages that were processed in the ISMT leave no audit trail.

Payments in the ISMT are carried out in real-time within the amounts of money in the account user. In the event of a shortfall amount of money-laundering, indicated in the message or the lack of money for position of the user in KISC payment instructions are in the queue. Documents, which are in the queue, are processed in accordance with the codes priority. Within codes priority execution of payment orders in the queue is in the order of their income in the queue on the principle of the FIFO - first in, the first out. Users are entitled to establish and change priority execution of payment orders. Users have the possibility of revoking payment document, located in the queue. Speed processing of messages in ISMT is on average 5 to 7 handled transactions per second.

Retail Payments System - system of electronic transfers small amounts of money through clearing house (clearing system).

The RPS is that payments in this system are not to be processed individually. As was reported in the clearing system for operational day, the payments are determined by the net position users on their opposing requirements and obligations, and only in the amount of net positions, as defined for each party, is money transfer.

The process of modernizing payment systems Kazakhstan began in 1994, and has undergone several important phases. The first step in the realization of this task was the development of appropriate legal and regulatory frameworks. The Law of the Republic of Kazakhstan "On payments and transfers money", signed on 29 June 1998, has become a fundamental instrument governing the issues of the implementation of the payments and transfers money to the territory of the Republic of Kazakhstan.¹⁶

In 1995 - 1996 in the implementation of the payments and transfers money played an important role Almaty clearing house and the regional clearing house, created by the regional branch offices of the National Bank. Data clearing house had worked on the method multilateral netting arrangements, as well as the application of various methods of risk management, in particular debit and credit restrictions, the system queues. However, the disadvantage that the system has been the need for the exchange between banks parties in the end of the day payment orders on paper. This was due to a lack of experience and regulatory embodied notion of "e-mail accounts".¹⁷

Since 1996, Almaty clearing the Chamber has been reorganized in Kazakhstan centre interbank payments (KISC) - state enterprise on the fortunes of reference, founder and an authorized body which is the National Bank. Improving the regulatory framework, install modern equipment and software has made it possible to work with the electronic payment orders, which does not require confirmation on paper.¹⁸

Another one of the activities that contribute to the development payment system was a centralizing correspondent account of the banks the second level in the central office of the National Bank of the Republic of Kazakhstan, which was carried out in the period from October to November 1998. This transfer allowed the National Bank promptly to carry out the functions expected bank and bank banks, to increase effectiveness of monitoring functions over the banking system and the payments system, to carry out translation support accounting correspondent accounts to work in real-time.

One of the key points in the development of the payment system was the establishment in 1996, based on the first prototype system KISC major payments, running in real-time. Centralized system users have all commercial banks and the National Bank. In a short time the system major payments (SLP) has become more popular due to electronic document management solutions, not requiring the paper confirm, impotence and reliability money transfers, as well as the high level of security.¹⁹

As a result of the work to bring payment systems of Kazakhstan in conformity with international standards, as well as with a view to meet the needs banking and financial sectors in the effective and safe payment system with the final calculations on the same day, in February 2000, began to interbank money transfers system (ISNT), which is a systemically important payment system of Kazakhstan, functioning in real-time (RTGS). For any country building RTGS system has the highest priority in the financial sphere. For this system describes sustainable functioning banking system of the state. Throughout the world there are generally accepted standards, establishing appropriate requirements to build such systems.

The ISMT was the next important stage in the development of Kazakhstan payment system, which resulted in improved mechanisms for monitoring liquidity risk management system banks. Users ISMT are the National Bank, the Treasury of the Ministry of Finance of the Republic of Kazakhstan, the State centre for payment of pensions, in "Evrica press", second-tier banks, the stock exchange, the securities and non-bank financial organizations of the United Nations.

The System retail payments during the course of its existence in 1995, also has undergone significant changes. In order to improve the quality of the services provided in this area banking activities, the National Bank from 1 August 1999, in the territory of the Republic of Kazakhstan was terminated activities clearing houses in regional branch offices of the National Bank. Data of the system had been replaced by multilateral netting system counter-obligations, running without the prior deposit of funds with the final calculation net positions of participants in the ISMT, which has received the name interbank clearing system.

Thus, at present, in the territory of the Republic of Kazakhstan has the following payment systems - ISMT and interbank clearing system, operated by the KISC. Payments through KISC are carried out with the use of modern and forward-looking technology and technical means. The available technologies enable payments to be made with the highest degree of efficiency.

From January 1995 until November 1998, as well as clearing the chamber KISC carried out a local regional clearing, in which daily billed debit and credit restrictions on clearing the remaining parties (currently, data limitations have been cancelled). The principles of building and risk management system in the limited range of participants only a small number of major second-tier banks. However, the growing needs in the banking system have resulted in the need for the establishment of clearing, which was open to all regions and the financial institutions of Kazakhstan.

From 1 January 1998, in KISC was introduced in commissioning the new clearing system, which allows one to connect to all banks and non-bank institutions of Kazakhstan, including treasury, pension funds, and others.²⁰

Prior to August 1999, the clearing system included the network clearing houses with branch offices due from banks and the Almaty clearing house when KISC, carrying out interbank payments in small amounts. Currently, interbank clearing will be escorted Almaty Mr. Subbotin KISC, clearing the chamber financial and industrial company "Timei". With the end of 1998, Almaty clearing the chamber operates on type National automated clearing house. Currently, KISC has the most advanced communications equipment, which provides users with payment systems all types of communication channels.

Payments made in course of 24 hours are sent to the system and are queued in accordance with established senders - members of the system priority codes. Each system party has access to information about all of their payments transferred in real-time during the operational day. Reception of documents in the interbank clearing is time, calculating net positions and money transfer to the MICEX is made once per day from 15:00 hours to 16:00 hours. Users have the option to close the operational day to withdraw sent in clearing payment document. In the event insufficient money in the account for the user payments, payments on the missing amount is cancelled and shall be recalculated. Such a scheme allows participants to manage its liquidity and maximize the use counter-flows of payments.

Money transfer to the MICEX Settlement is carried out in the ISMT after determining the net position of the institution.

Each payment system has its own purpose and focus on certain markets for goods and services. The ISMT are large, high-priority and urgent payments in the country, the financial sector operations, the calculation which is provided immediately after income instructions from the user to the system (with the availability of funds by the user in the system), i.e., in real time mode. In this regard, this system account for the largest share of the total cash payment in the country (for example, in 2013, the ISMT was processed 98.4 % of the total volume of cashless payment and 36.1 % of total).²¹

The Interbank Clearing System participants are sent to retail payments for the small amount that contributes to passage through the clearing system of more than half the total number of cashless payment system in the country. Special features this system is, that it is possible to administration of payments with the future our representative offices, etc., as well as the restrictions on the maximum amount of a single payment (to date 5 million KZT).

In order to smooth and continuous operation, increase the power and increase the security systems of payment the National Bank carries out activities to build a new backup centre payment systems, the relevant international requirements.

Separately I would like to point out one of the forward-looking and dynamic developing components payment system - the market cards. Currently, licenses to issue payment cards have 30 second-tier banks of Kazakhstan. Kazakhstan market payment cards are cards of international payment systems Visa International, Europay International, American Express International and Diners Club International) and payment cards of local payment systems (Altyn Сard, duet, Smаrt Alem Cаrd, Citibank Kazakhstan, Cesna Bank and Kаzсаrd).

The number of cards issued by Kazakh banks to date (1 January 2014), is 15.0 million (an increase in 26 times in the past 15 years). Thus, at an average rate of 1 rights of the republic is one payment card, whereas the ten years ago one payment card went in an average of 5 people.²²

The growth of number of trading terminals, ATMS, trade organizations was a positive trend, as well as the growth of number of cashless payments with the use of cards which was enclosed during recent years in comparison to the year 2014.

The National Bank, in conjunction with the Government of the Republic of Kazakhstan is taking measures to create the conditions for the further development of infrastructure service payment cards. An important role in the promotion of the development of payment cards has also played an active second-tier banks in this area.

It should be noted that payment systems of Kazakhstan commended by international financial organizations, as well as on the results of the most recent evaluation hoping the experts of World Bank and the International Monetary Fund recognized ISMT the 10 key principles, elaborated by the Committee on payment calculation systems Bank for International Settlements for systemically significant payment systems.

The National Bank shall work to further improve existing payment systems, in particular the retail cashless payment system with a view to improving the effectiveness of their operation, reliability, and security. Measures of the National Bank for Development payment systems are aimed at improving operating efficiency, reliability, speed and timeliness payment operations while reducing risks, as well as the creation of conditions for use of the various innovative instruments of payment.

2.1.1 Market electronic banking services

Banks payment and other services by means of the electronic terminals and systems remote access from the innovative method is gradually becoming one of the major factors influence the market financial services. For example, the bank, not having extensive network bank offices, can attract more customers, introducing services through the internet, mobile banking and electronic terminals. Thus, an assessment of the current status and prospects for development of the financial sector in a country, including payment systems, must take into account physical infrastructure operators internet, mobile communications, as well as availability of electronic terminals and their availability the main part of the population.

In Kazakhstan infrastructure indicators electronic banking terminals as mentioned in Figure No. 2 at the end of 2013, are presented as follows:²³

? 33,318 POS terminals, 27,325 of which are installed in the trade and service organizations (growth compared with 2011 year amounted to 16.5 % and 15.3 % respectively);

? 8,652 ATMS, 1,040 of which the function accept cash money (growth at 6.7 % and 13.8 % respectively);

? 1,678 Banking kiosks (growth at 18.0 %).

Source: compiled by the author by “An analytical review of electronic banking services and payment systems for the year 2012, the National bank of the Republic of Kazakhstan. Almaty,

In Kazakhstan as of 01.01.2014, the 1 terminal accounted for 483 residents, at 1 ATM - 1,860 inhabitants. For comparison, at the beginning of 2013, the 1 terminal accounted for 270 residents, the one ATM - 1,007 inhabitants (watch table No. 1). However, in Kazakhstan in connection with more features should be expected in the subsequent a more dynamic development of the network banking kiosks.

Table No. 1

A comparative table of the terminals and ATMs in 2012

Country	Number of per capita at the	Number of per capita at the
	1 terminal	1 ATM
Kazakhstan	483	1,860
Russia	270	1,007
England	45	960
Singapore	58	2,053
Switzerland	51	1,188

Source: compiled by the author by “An analytical review of electronic banking services and payment systems for the year 2012, the National bank of the Republic of Kazakhstan. Almaty, 2014”.

The ratio of quantitative indicators electronic banking terminals with the holders of cards 3 of terminal and 1 ATM is located at 1000 the clips. When the Supreme Court ruled on this figure is similar to those of developed countries. With regard to the established rate of Kazakhstan below terminal performance of developed countries, for example, in England in 1000 the clips are 8 terminals, in Singapore - 17 terminals, in Switzerland - about 10 terminals.

However, the presence of a large amount of equipment is not a sign of maturity and payment infrastructure. For example, in the city of Almaty, in the framework of a working meeting and assessment payment infrastructure, the representatives of the World bank and company Visa concentration noted in separate locations, which is not the case in Europe and the United States. Thus, there is a problem equivocation between banks, as well as the deployment of the hardware, and the service holders of payment cards.

To assess the development infrastructure payments through remote access systems, such as the Internet, the use of mobile phones, and so forth. Possibly by consideration of the dynamics changes in the volume of transactions, committed through data systems. Thus, in 2013, as compared with the year 2012 the growth in the number of payments, carried out through the internet and mobile phones, amounted to 27.3 %, which indicates that the interest banks do business electronically.

However, the advantage of e-business is at the same time and the main disadvantage. As noted western experts, where banks have long drew attention and develop the market electronic banking services, a significant portion of the population does not accept, and some, by trying, refuses to electronic banking service.

As the primary reason for such behavior, banking customers have noted the inability to when a virtual solution for all their needs, that, including, implies an unwillingness to examine the procedures for the implementation of e-payments and other financial transactions.

Thus, despite all the convenience electronic banking service, the population is not yet ready to abandon the traditional live communication with the implementation of the financial transactions, including payments and money transfers. And to a greater extent this applies to less than progressive part of the society.

One of the supporting factors such conclusions is a marked differentiation indicators of development of electronic banking services for regions of Kazakhstan, i.e. high rates in major cities - traditionally cultural centers and low in the areas. The most developed indicators network electronic banking terminals there is in the city of Almaty, which accounted for 32.0 % of all POS terminals, 18.8 % and 17.8 % ATM banking kiosks. In Astana there are 13.4 % POS terminals, ATM and 10.1 % 8.5 % banking kiosks. Almost all the remaining regions data rates are below 10 %.²⁴

In Russia there is a similar situation, because, according to proactive all-Russia survey conducted in the year 2012, the major user's electronic banking services, including internet banking, live in Moscow and St. Petersburg. In Kazakhstan, at the end of 2012, there were 14,173 trade and service enterprises, which have entered into agreements with banks for the installation of POS-terminals in their 21,329 paragraphs trade and service (TSI). For the year 2012 the number of the specified business increased by 17.8 %, and OB at 15.8 %.

The main part of, entrepreneurs and TSI are located in the city of Almaty - 32.8 % and 34.6 %, respectively, in Astana - 14.8 % and 14.4 %.

At the same time, in early 2013, in effect the decision of the Government, according to which individual entrepreneurs (IE), by implementing certain types of activities, undertake to take the payment card, respectively, to install POS-terminals (4th). According to tax committee, such IE there is over 160 thousand. In this connection, it should be expected to make a significant increase in the scope of application of payment cards. But, in spite of the positive expectations, there are some outstanding issues. For example, under the operation of the said judgment is not subject to trade, carried out with the containers and honey, i.e., in the markets. While the turnover, respectively, of cash earth a separate carve or container on the market can be in times exceed speed TSI, in which mandatory install POS-terminal.²⁵

There are also the chances of downtime POS-terminals. For example, in the year 2012, one POS-terminal on the day was carried out at least 2-x transactions. For example, in the year 2012 on a single ATM connection on the day in an average of over 46 transactions for removing cash and 5 for the implementation of the cash payment, the bank kiosk 21 transaction, of which 19 by cash contribution. For comparison, in Russia on a single ATM connection in an average day is committed some 40 transactions.

In Kazakhstan the residents have 0.8 payment cards, which is below the rate developed foreign countries. For example, in the developed countries, the residents have 3 - 5 cards, that show the active use issuers this balance-of-payments support tool as oppositional magazine. In England the one resident have 3 cards, in Switzerland - 2 cards, in Russia - 2.8 cards. Thus, bearing in mind that in Kazakhstan the number of payment cards in treatment less than total number of inhabitants, the banks has space for development activities.

A characteristic feature of the market of payment cards in Kazakhstan is a gradual growth in payment cards in treatment is not less than 10% per year, the total number of which on the 01.01.2013, amounted to 12.1 million units, that the 26.9 % more than their number as at 01.01.2012. The number of holders of payment cards amounted to 11.1 million people, that the 2 million more economically active population of the country. ²⁶

Draws attention to itself a significant (from 11.4 % to 17.6 %) the increase in the year 2012 the proportion of credit cards in the treatment.²⁷

It should be noted that a significant increase (2.2 times) in Kazakhstan credit cards in circulation in 2012, similar to the situation in Russia, where the follow-up to the 9 months 2012, the number of credit cards increased by record 60.3 %, and experts are predicting the end of the year, growth may exceed 80 %.

1%

18%

81%

Figure No. 3 The share of credit and banking cards in the Republic of Kazakhstan in 2012

Source: compiled by the author by “Payment system of the Republic of Kazakhstan. [online], [cit. 2015-02-03]. Available from WWW: <//www.nazbank.kz>.”

The bulk of payment cards in circulation are international payment system - 95.4 %, which represented the payment cards VISA International (83.2 %), MasterCard worldwide (11.9 %), China Union Pay (0.1 %) and American Express International (0.2 %). Local systems are 4.6 % of the market.

The regional cut payment cards market in Kazakhstan shows that more than a third of cards in treatment and their holders are in Almaty. The probe into these claims, East Kazakhstan, South Kazakhstan and Astana is 7.7 %, 7.0 %, 6.8 % and 6.8% respectively of the total number of payment cards in circulation. In the other regions of the world, this figure is less than 5 %.

On the follow-up to the 2012, using a payment card issuers Kazakhstan in the territory of the Republic of Kazakhstan and outside it is committed by 187.6 million transactions in the amount of 5.6 trillion KZT. In comparison with the year 2011 the number of transactions increased 20.5 % and the amount 27.9 %. The number of removal operations for cash money, using cards Kazakh issuers amounted to 146.4 million. Transactions in the amount of 4.7 billion KZT (97.8 % of quantity and 88.6 % of the amount carried out by ATM), increased in comparison with the year 2011 17.2 % on the number of and the 27.4 % of the total cashless payments for goods and services using a payment card issuers Kazakhstan amounted to 41.2 million. Transactions in the amount of 0.8 trillion KZT, increase as compared with the year 2011 33.9 % on the number of and the 31.6 year of the total amount.

Thus, the share of cash payments in the overall structure payments using a payment card issuers Kazakhstan is 20.9 % of the number of and 12.8 % of the amount.²⁸

Trends change in the proportion of cashless payment system using a payment card issuers Kazakhstan in the past 5 years are as follows, that there has been a gradual increase in the proportion of number of cashless payment, at the time, as a percentage of the amount is not changed.

The reality of the situation is related to the fact that the vast majority of cards had been issued equity holders in the framework of the "salary projects", which have traditionally been the flow of money to remove the entire amount in cash. In this regard, growth in wages these clips directly affects the pattern of payment using payment cards.

The increase in the proportion of number of cashless payment system also is associated with the development of the functional capabilities and the emergence on the market banking kiosks, by means of which may be the implementation of the cashless payment system. However, the indicated payments, as a general rule, are committed by a small amount (watch table No. 2).

So in the year 2012 by an ATM by 42.4 %a and 24.2 % of the sum of all cash payment with payment cards between Kazakhstan and foreign issuers in Kazakhstan, at the time, as well as through POS terminals, originally intended for the implementation of the cashless payment system, implemented 46.1 % of quantity and 66.1 % of the amount specified payments.²⁹

Table No. 2

Payments through electronic banking terminal systems and remote access in 2012

	Cashless	payments,	using	Cashless payments without	Payments without the use
					of payment cards by cash
	payment cards		the use of payment cards
Name terminal				contribution
or remote access
	The number	The	amount	The		The amount	The number	The
systems	of				number	of		of	amount
			(million			(million
	(thousands. tr		(thousands.		(thousands. t	(million
		KZT)			KZT)
	ans.)				trans.)			rans.)	KZT)
POS-terminal	16,058		440,505	-		-	-	-
The share of %	46.5		68.9		-		-	-	-
ATM	15,867		162,518	-		-	404	18,433
The share of %	46.0		25.4		-		-	3.5	7.8
Banking kiosk	777		21,056	-		-	10,983	214,801
The share of %	2.3		3.3		-		-	96.1	90.7
Internet	1,619		14,453	5,067		118,920	-	-
The share of %	4.7		2.3		74.2		47.7	-	-
Mobile phone	196		183		349		753	-	-
The share of %	0.6		0.03		5.1		0.3	-	-
Other devices	10		251		1,408		129,423	36	3,714
The share of %	0.03		0.04		20.6		52.0	0.3	1.6
Total:	34,529		638,966	6,824		249,096	11,423	236,948

Source: compiled by the author by “Payment system of the Republic of Kazakhstan. [online],

Only in the territory of the Republic of Kazakhstan for the year 2012 through banking electronic terminals and remote access systems (with the exception of the bank-client) with the use of cards between Kazakhstan and foreign issuers, as well as without their use is committed 52.8 million transactions in the amount of 1.1 trillion KZT (7.5 billion USD).

For comparison in Russia for the 2011 year was held through electronic terminals, 49.8 billion USD, in England - 753.1 billion USD, in Switzerland - 84.9 billion USD, that shows that the market banking terminals of Kazakhstan is only at the initial stage of development.

Load on the ATM's in 2013, was relatively small. On average, every day in every ATM transaction accounted for 53, that the 2 transactions more than the year 2012. Such a change is understandable from the point of view of slowing the rate of growth imposed by atm. The similar figures for banking kiosks have changed significantly, with 97 transactions at one bank kiosk in the year 2012 up to 178 transactions in 2013. The increased load on the banking kiosks has been expanding their functional capacity, in particular, the introduction to their use as a terminal services instant payment. However, in spite of this, the major share of all cashless payment and transaction with cash in Kazakhstan accounted for the traditional device - ATM and POS-terminals.

For comparison in Russia for the 2011 year was held through electronic terminals, 49.8 billion USD, in England - 753.1 billion USD, in Switzerland - 84.9 billion USD, that shows that the market banking terminals of Kazakhstan is only at the initial stage of development.³⁰

Load on the ATM's in 2013, was relatively small. On average, every day in every ATM transaction accounted for 53, that the 2 transactions more than the year 2012. Such a change is understandable from the point of view of slowing the rate of growth imposed by atm. The similar figures for banking kiosks have changed significantly, with 97 transactions at one bank kiosk in the year 2012 up to 178 transactions in 2013. The increased load on the banking kiosks has been expanding their functional capacity, in particular, the introduction to their use as a terminal services instant payment. However, in spite of this, the major share of all cashless payment and transaction with cash in Kazakhstan accounted for the traditional device - ATM(watch figure No. 5) and POS-terminals (watch figure No. 4).

...