The Prospects of the Partnership between Alipay+ and Kaspi.kz

Three months have passed since the evolving relationship between China and Kazakhstan took a significant step forward with the announcement of a partnership between kaspi.kz and Alipay+. Kaspi, a dominant financial technology company in Kazakhstan, is dedicated to accommodating its customers with global usage of their services, prompted by the growing rate of globalisation. Similarly, with 1.5 billion consumers globally, Alipay+ is a world leader in cross-border mobile payment solutions for businesses of all sizes. This new collaboration has enabled citizens of Kazakhstan to pay online through the Super Kaspi App in Chinese stores without converting their money to yuan. Kaspi customers can use QR code payments throughout China, facilitating smooth transactions at over 80 million points of sale, including stores, cafes, and taxis. This strategic move addresses a growing demand among Kazakhstanis who frequently travel to China for work or study.

The new collaboration between the two countries offers myriad opportunities for Chinese businesses to integrate with Kazakhstan’s economy. Firstly, it is noteworthy that the rates for transferring goods between the two nations are expected to decrease due to Kaspi's efforts to simplify the conversion of yuan to tenge. This indicates the validity of China and Kazakhstan's ambitions for improved trade routes and steady economic coordination. Furthermore, although unintentionally, this collaboration among Asian banks has significantly contributed to the tourism industry, making it another viable investment target. The ease of currency conversion and reasonable pricing have made travel more accessible. Entrepreneurs on both countries' borders are beginning to capitalise on this new economic shift, while travel and tourism organisations are experiencing an increase in bookings.

The Kazakh government is focused on integrating modern fintech technologies into everyday life. This is clearly demonstrated by the substantial bonus system for online purchases in the Kaspi app and slightly lower costs for public transportation tickets when paid online. For instance, an adult bus ticket costs 90 tenge when paid online via the Kaspi app, whereas traditional payment methods require 130 tenge. By increasing the scope of online payment methods, Kazakhstan has strengthened its relationship with its significant southern neighbour, China. Mikhail Lomtadze, CEO and co-founder of Kaspi, expressed his enthusiasm for the partnership with Alipay+, noting that the ability to pay for purchases abroad as easily as in Kazakhstan was a frequent customer request. This development not only meets these demands but also showcases Kaspi’s commitment to enhancing the user experience through innovative technology. Venetia Lee, Greater China General Manager of Ant International, the parent company of Alipay+, echoed this sentiment, emphasising that the partnership would enhance the travel and shopping experience for Kaspi users in China. She also underscored the broader vision of using technology and service excellence to bring people and communities closer through travel and commerce. Additionally, Alipay+ emphasises offering discounts for specific payment methods at merchant checkouts, with customisable incentives such as discounts for users making their first purchase via Alipay+. In essence, Kaspi’s mission to improve lives through innovative mobile products and services aligns well with China’s vision of a technologically advanced society. By creating a steady mobile payment experience for users, this partnership not only boosts consumer convenience but also sets a precedent for future collaborations in the fintech space.

Both Asian countries are expected to experience positive economic development. However, what implications does the collaboration between Central and East Asia hold for the global fiscal community? This partnership is a clear indicator of the strengthening of bilateral relations between China and Kazakhstan, suggesting governmental support and encouragement for Chinese businesses to integrate with Kazakhstan’s economy, and vice versa. Neighbouring states are also potential future partners, assuming the authorities intend to invest in the financial technology sector. With the integration of their platforms, these two massive fintech companies are opening up access to enormous consumer bases in Kazakhstan and China for businesses globally. Innovative financial services and cutting-edge payment systems can also help businesses improve customer satisfaction and operational efficiency. Consequently, funding Chinese financial technology companies would open up future opportunities for cooperation with the Kazakh economy, while Kazakhstan's encouragement of more robust financial transactions suggests numerous opportunities for foreign investors and future fintech-related business endeavours.

The kaspi.kz and Alipay+ partnership is more than a business agreement; it reflects the growing interdependence between China and Kazakhstan. As both nations navigate the complexities of the global digital economy, such initiatives will play a crucial role in shaping a collaborative future within the financial technology sector. The collaboration between Alipay+ and kaspi.kz marks a pivotal moment not just for China and Kazakhstan, but for the global financial landscape. The partnership opens up significant opportunities for international companies and businesses looking to expand into the rapidly growing markets of Central and East Asia. This development serves as a beacon for future investments in the fintech sector, highlighting the potential for significant returns in markets that are increasingly embracing digital transformation. For international investors and companies, the cooperation between Alipay+ and kaspi.kz presents a unique opportunity to be at the forefront of a financial revolution.