Uzbekistan’s fintech market projected to double in size by 2027, reports Daryo News

The financial technology (fintech) sector in Uzbekistan is experiencing a rapid growth trajectory, with projections indicating a significant increase in non-cash payments and transfers by 2027. A study conducted by KPMG Caucasus and Central Asia highlighted the country’s evolving fintech landscape, showcasing a doubling of cashless transactions and a remarkable 66% annual growth in consumer retail lending from 2020 to 2023.

In 2022, non-cash payments and transfers accounted for approximately 58% of Uzbekistan’s GDP, signaling a substantial shift towards digital transactions. The total value of peer-to-peer (P2P) transactions is expected to increase by an average of 2.2 times with a 22% compound annual growth rate over the period of 2023-2027.

The study also revealed that the turnover of non-cash transactions, including payments and money transfers, reached $36.2 billion and $10.5 billion, respectively, in 2022. Projections suggest that by 2027, the total volume of non-cash transactions could range from $107 billion to $125 billion.

Farrukh Abdullakhanov, a partner at KPMG Caucasus and Central Asia, emphasized the importance of digitalization for Uzbekistan’s development, with the fintech sector attracting significant attention from both domestic and foreign investors. The study forecasted a robust growth in the point-of-sale (POS) financing and Buy Now, Pay Later (BNPL) market, with a turnover expected to reach $1.5 billion to $2 billion by 2027.

Overall, the findings underscored the immense potential of Uzbekistan’s fintech market for innovation and expansion in the coming years, drawing increased investor interest and paving the way for further advancements in the sector.