Russian companies can capture a certain share of the fintech services market in the CIS.

Sanction pressure forces Russian businesses to seek new opportunities for development. A new trend this year is the expansion of Russian fintech companies into CIS countries, where the fintech services market is growing dynamically and tax legislation is favorable to technological companies.
Some players see the CIS as a new dynamic market, while others see it as a hub for advancing into Asian and Middle Eastern countries. Both groups are counting on an increase in clientele. With an effective strategy, Russian fintech companies can capture a significant share of the market in the region.

Juniour lawyer Tamrin Darbakov commented to the publication "Kommersant" on the growing demands of businesses to enter new markets in the CIS countries.

In comparison with other countries in the region, Kazakhstan is the most technologically advanced. According to the research of the company red_mad_robot central asia, 86% of the population of Kazakhstan actively uses online banking.

The trend for mobile banking appeared after the success of Kaspi, which launched its own payment system and marketplace. In 2021, the super app Kaspi in terms of daily audience surpassed Amazon, Tinkoff, and PayPal in Kazakhstan. "Through, you can pay for any purchases using a QR code, allowing the service to compete with Google and Apple Pay," noted Tamrin.

At first glance, the market of the Republic of Belarus appears to be the least promising in the CIS for Russian fintech players to enter. According to Tamrin Darbakov, this is due to its narrowness and, as a result, oversaturation. Sanctions are also taking their toll, affecting 54% of national fintech startups to varying degrees, with 41% experiencing a decrease in revenue.

Armenia is currently the least promising market for entry. "The slow development of digital banking in Armenia is due to its geographical location and cultural peculiarities, as residents prefer personal interaction in all matters, including banking," explains Tamrin Darbakov.
The population is divided between those who use bank cards, payment services like Google and Apple Pay, e-wallets, and payment via QR code, and those who exclusively use physical cash.
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