Features of the e-commerce market and online payments in Kazakhstan

Development of e-commerce in the Republic of Kazakhstan

Kazakhstan’s e-commerce sector is still very young, but it demonstrates intensive growth dynamics and quickly adapts to external factors. According to analysts from Sirius Group of Companies, in 2023 it reached $5 billion (=12.5% ​​of all retail sales). An increase of another 20% is expected in 2024. The market volume is distributed following income level and population density; accordingly, the largest cities - Almaty, Astana, and Shymkent - are in the lead.

The key driver of e-com development is the country’s favorable strategic location – clearly between the West and the East. This turns Kazakhstan into a profitable platform for companies that want to approach a large regional consumer base.

What influences the development of the e-commerce market

The “three pillars” that contribute to the development of the e-commerce sector of the Republic of Kazakhstan are:

• high prevalence of the Internet and smartphones;
• growth in the number of middle-class representatives among the population;
• development of digital payment technologies.


These points determined the dynamics of the market system and created the most comfortable environment for online shopping within the country. Increased investment in logistics and high GDP figures for 2022 and 2023 also played a positive role.

The future of the e-commerce market in Kazakhstan

According to Strategy&, part of the PwC network for 2023, sales through marketplaces amounted to 89% of the e-commerce sector (the remaining 11% went to online stores). Marketplaces promise to remain relevant in the future, which is facilitated by two points: a huge range of products and the option to make purchases in installments. Growth is also predicted for the grocery delivery segment (e-grocery), which is associated with an increase in the need for convenience among the population of large cities.

In the future, the Kazakhstan e-commerce market will become even more consumer-oriented through the introduction of AI and augmented/virtual reality technologies, solving logistics problems, and strengthening the trend of multi-channel retailing. With the development of the sector, it is planned for Kazakhstani companies to expand outside the country (first of all, to the markets of Central Asian countries), where they will become the first in the field of trade and e-commerce abroad.

Development of payment methods in Kazakhstan

The rapid digitalization and development of the e-commerce market of the RK, as well as the large selection and increasing reliability of online payment methods, directly influenced the decrease in the number of cash payments and the increase in non-cash payments. The popularity of cashless methods is further fueled by their accessibility, convenience and variety. Among them are:

• DCB (direct carrier billing) – customers buy goods/services online using funds from their mobile account;
• POS acquiring – payment through the terminal using a bank card (using a chip, magnetic tape, NFC or manually entering details);
• CARD acquiring – accepting card payments online (through the website, app) and offline (through the terminal).

Problems of e-commerce in the Republic of Kazakhstan

The main weaknesses of the Kazakhstan e-com market are logistics and maintaining customer trust. The first problem is related to the unique geography of the country and is solved by developing optimal routes, tracking parcels, opening more warehouses and delivery points (and improving the quality of their work).

As for the second, companies are placing increasing emphasis on improving the quality of service. This is facilitated by omnichannel/multichannel e-commerce (different communication channels combined into one system). It increases the convenience of shopping, and each client has a positive individual experience of cooperation. As for the seller, omnichannel helps to collect and systematize the database and increase consumer loyalty.

The role of Paygate in the development of e-commerce in Kazakhstan

As mentioned above, one of the key factors in the development of the e-commerce market is the variety of payment methods, as well as the stability of payment acceptance and high conversion rates for a successful online business. The PAYGATE platform will provide your company with all these aspects and make your payments more efficient. This will allow you to function successfully in the moment, grow your customer base and maintain its loyalty, and in the future, expand and enter new markets.