Uzbekistan is rapidly developing the digital payments sector, which is conditioned by significant legislative reforms and government initiatives aimed at creating a cashless economy. These changes are long-term prospects for both local and international stakeholders.
Legislative reforms:
In recent years, Uzbekistan has implemented several key legislative measures to improve the digital payments ecosystem. The Law “On Payments and Payment Systems” (2019) provides a comprehensive legal framework for payment service providers, paying special attention to consumer safety and protection. The National Bank’s strategy for the Development of digital Banking Services (2020) also creates the basis for a reliable digital financial infrastructure.
Government initiatives:
A significant stage was the introduction of the National Payment System in 2023, which increased the volume of non-cash transactions by 35%. The Digital Uzbekistan 2030 initiative supports this growth by creating a single data center for financial transactions, ensuring efficient and secure payment processing.
With the development of high technologies and improved access to the global Internet, digital payments have become more relevant and accessible. In 2023, the number of users of mobile banking applications increased by 28%, with non-cash payments accounting for 45% of all financial transactions. Collaboration between banks and fintech companies is also gaining momentum, offering integrated solutions that combine traditional banking with digital innovation.
Despite significant progress, challenges remain, such as cybersecurity and financial inclusion. In 2022, 18 cyber attacks on financial institutions were identified, which highlighted the need for reliable security measures. To improve financial accessibility, the government has launched a digital literacy program, educating more than 10,000 rural residents by the end of 2023.
Global implications:
Modernizing Uzbekistan’s role in the digital payments system and striving to create a secure, inclusive and efficient digital payments ecosystem provide comfortable conditions for international investors and for doing business in the country.
DIGESTS Global Law Firm is ready to help clients navigate these legal and regulatory landscapes by offering expert advice on digital payments in Uzbekistan.
