From Cash to Smartphone: Why Kyrgyzstan is Rapidly Moving Towards Cashless and QR Payments

Елена Краснова • 29.12.2025, 11:28 • Society

When was the last time you paid in cash? For most citizens of Kyrgyzstan, cashless payments have become a common occurrence. How did the country manage to transition to cashless forms of payment in such a short time?

The sharp increase in the volume of cashless transactions is backed by a carefully crafted strategy from the National Bank of the Kyrgyz Republic, aimed at improving the transparency and accessibility of financial services. This is not just words, but a reality that Kyrgyz citizens have encountered.

Statistics confirm the effectiveness of the measures taken: since 2020, the number of cashless payments has been steadily increasing. Previously, there were fees for transfers made via phone number or card, and such operations were not conducted actively. However, after the decision by the NB KR to abolish fees for domestic transfers in November 2024, the volume of cashless operations surged. According to the NB KR, in the 11 months of 2025, 454.8 million payments were made through the interaction operator system, totaling 778.1 billion soms, which is 8.5 and 12.2 times more compared to the same period in 2024.

The decision to introduce cashless payments between banks was not made lightly. These services come with their costs: banks and financial companies incur expenses for clearing and other services, as all transactions pass through the regulator's systems.

Nevertheless, the National Bank, in making this important economic decision, set a more priority goal – to increase the use of cashless payments and expand access to financial services.

Notably, there has been a significant increase in cashless payments in the public services sector.

On December 3, 2025, the board of the National Bank again decided to extend the ban on charging fees. From January 1 to December 31, 2026, commercial banks and payment organizations are prohibited from charging commissions to individuals for transfers in the national currency within the country, conducted through mobile applications and internet banking.

The financial regulator emphasizes: "The practice of 2025 showed that the abolition of fees contributes to the rapid growth of online transfers. This makes cashless transactions more attractive to users and encourages a shift away from cash, facilitating the digitalization of the population's financial habits."

The development of cashless payments has also positively impacted the infrastructure of retail outlets. As of December 1, 2025, the country had installed 2,755 ATMs, 64,666 POS terminals for accepting payments and dispensing cash, as well as 21,529 payment terminals for working with cash. This is particularly noticeable in the regions, where cashless payments significantly simplify the process of paying for goods and services. Efforts to increase the volume of cashless operations will continue. Kyrgyzstan is already taking a leading position in the region in terms of the number of cashless transactions among the population, and the ability to conduct such operations abroad expands their application.

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