Kazakhstan is preparing to introduce a QR-code payment system with China by the end of 2026, marking a significant step to increase the use of the Chinese yuan beyond traditional trade and investment channels. The initiative aims to enable citizens of both countries to make mobile payments via QR codes while visiting each other’s nations, according to Binur Zhalenov, deputy governor of the National Bank of Kazakhstan. The announcement was made during a fintech summit in Almaty.

This move is part of a broader effort by Beijing to deepen financial and trade ties under the Belt and Road Initiative and to promote the yuan’s role in cross-border transactions amid a global trend toward reducing reliance on the US dollar. Kazakhstan also plans to extend cross-border payment services to 11 countries, including India, the United Arab Emirates, Kyrgyzstan, and Uzbekistan. Payment systems with these nations are expected to roll out starting in mid-2027.

Economists note that the rollout of such payment systems could help embed the yuan further into everyday consumer activities in Central Asia. Liu Feng, chief economist at the International Institute of Green Finance, explained that extending the yuan into retail payments represents expansion beyond its traditional role in major trade settlements. “When Kazakh residents can scan and pay as easily as [Chinese people], the network effect of the yuan begins to take root at the retail level,” Liu said. He added that Kazakhstan’s initiative could accelerate the yuan’s rise as a regional payment currency and support China’s efforts to establish yuan-based payment standards in Central Asia.

As a key hub in the Belt and Road Initiative, Kazakhstan’s adoption of these payment methods could create significant network effects across neighboring economies, potentially providing a “gentle yet substantive” alternative to the dominance of the US dollar and euro in regional transactions.

The planned QR-code payment system builds on existing collaborations. In 2024, Kazakhstan’s Kaspi.kz app partnered with China’s Alipay to allow Kazakh users to make mobile payments in China. Alipay is operated by Ant Group, affiliated with Alibaba Group Holding.

Officials from China underscored the yuan’s gradual but steady internationalisation. Lu Lei, deputy governor of the People’s Bank of China, described the trend as “continuous and steady” and “irreversible,” emphasizing ongoing efforts to expand the digital yuan’s cross-border applications. Zhang Danhong, adviser at the Centre of Geopolitics for the Global South, highlighted the emergence of a comprehensive ecosystem facilitating the yuan’s international use.

The Kazakhstan-China QR payment project signifies a continued push by both countries to integrate their financial systems as part of a broader landscape shifting toward diversified currency options in international trade and daily transactions.