Press room

Kazakhstan Introduces Mastercard Tokenization Platform

25.04.2018

Almaty, 25 April 2018 —JSC Halyk Bank and Mastercard international payment system for the first time in Kazakhstan have implemented the contactless payments with smartphone on the Mastercard Digital Enablement Service (MDES) platform. Now customers of Halyk Bank - Mastercard cardholders will be able to pay for their purchases simply by waving their smartphone over a reader at a POS terminal equipped with contactless payment accepting device. The token secured transactions are protected by the most advanced technologies of Mastercard. The service is available for smartphones based on Android OS 4.4 and above, which support NFC technology.

Such payments will be further secured by customer's authorization: when paying via myHalyk application, the customer must enter an access code or a fingerprint. In addition, the customer can activate the tokenization technology in a batch mode, without having to open the mobile application myHalyk to make payment. To do this, the smartphone’s screen lock must necessarily be configured. Currently, the vast majority of POS terminals of Halyk Bank and Kazkommertsbank (more than 37,000 devices) support the option of contactless payment. Through the mobile application, myHalyk customers of Halyk Bank can also open a Mastercard Classic debit card or instantly issue a Mastercard Virtual card free of charge. More.

The Mastercard Digital Enablement Service (MDES) platform allows high level of security of mobile payment services. Thanks to the latest developments in payment technologies - EMV, tokenization and cryptography, bank card data are safe. When connecting Mastercard cards to myHalyk wallet, the card number is stored neither on mobile device, nor on the bank's servers, nor at the merchants. Instead, the mobile application generates token - a unique 16-digit combination tied to a wallet on a particular smartphone. Such token is used when paying. Each transaction made with Mastercard credit or debit card token is secure for both customers and merchants, and represents the same guarantees and benefits as any other Mastercard transaction.

""We strive to offer our customers the simplest and most reliable methods of payment. According to statistics, more and more customers of Halyk Bank are inclined to choose remote channels of service - Internet and mobile banking, ATMs and POS terminals, - said Deputy CEO of Halyk Bank Marat Almenov. - Considering that smartphone is the only portable device, without which a man of today does not leave the house, we went even further and offered our customers to give up ""plastic"" in making purchases. With the help of digital tokens, which can be easily created in the mobile application myHalyk, 1,368,000 Mastercard cardholders of  Halyk Bank can pay for goods and services with one wave of Android smartphone at any trading and service enterprise where contactless technology based terminals are installed.""

 ""We are very proud that Mastercard has introduced tokenization technology in Kazakhstan jointly with Halyk Bank. This means that the most advanced achievements of the world payment industry are accessible to Kazakhstan people, who can make purchases in an easy, convenient and safe way. For many years, we have been leaders in mobile commerce innovation, including the development of contactless and mobile payment solutions. The country has recently adopted the state program “Digital Kazakhstan”, aimed at developing a digital ecosystem to achieve sustainable economic growth, increasing the competitiveness of the economy and improving the living standards. We believe that the launch of such projects contributes to the successful implementation of these goals, ""said Nina Willems, Head of Mastercard in Kazakhstan, Belarus and Armenia.

The number of digital payments around the world is steadily growing. According to the forecast of Masterсard, 38% transactions in Europe will be made electronically by 2020. The company's research shows the constantly growing positive attitude of users to digital innovations and their role in the future of financial services, commerce and trade. For example, a recent survey of customers of European banks showed that they consider convenience the main advantage of digital financial services. The majority of respondents (70%) noted that such services allow them to save time, and 59% appreciate the friendly use. In addition, 6 out of 10 respondents are positive about digital banking solutions and believe that digital technologies in the financial sphere make their lives easier and safer.

For several years, Mastercard has been closely cooperating with technology partners and financial organizations, introducing a payment tokenization service. For the first time, the MDES platform was introduced in 2013 in the US, and since that time, millions of MasterCard cards have been processed as part of the tokenization service for use in popular electronic wallets.

General information:

JSC Halyk Bank is the leading financial group in Kazakhstan, operating in various segments, including retail, SMEs and corporate banking services, insurance, leasing, brokerage and asset management. The bank has been listed on the Kazakhstan Stock Exchange since 1998 and on the London Stock Exchange since 2006. In July 2017, the Bank acquired a controlling stake in Kazkommertsbank, Kazakhstan's second-largest bank in terms of assets. With assets of KZT 8,674.6 billion as of 30 September 2017, the Bank is the leading lending institution in Kazakhstan with the largest customer base and branch network - 719 branches and outlets across the country (including 220 branches and outlets of Kazkommertsbank). The bank also operates in Georgia, Kyrgyzstan, Russia and Tajikistan.

Mastercard (NYSE: MA) https://www.mastercard.kz/ru-kz.html – a technology company operating in the global payment industry. We manage the world's fastest payment processing network, which connects consumers, financial institutions, trade organizations, government and business structures in more than 210 countries and territories. Mastercard products and solutions allow for easier, safer and more efficient solutions of everyday problems, for example, to make purchases, travel, conduct business and manage finances. Follow us on Twitter  @Mastercard_RU and Mastercard Facebook, join the discussions on  Beyond the Transaction and subscribe to our newsletter  Engagement Bureau.

PR Service
JSC Halyk Bank
Tel.: + 7 (727) 259 03 01
e-mail: pr@halykbank.kz

Press Office of Mastercard in Russia
Elena Prorokova
Tel.: +7 (495) 937-77-10
e-mail: elena.prorokova@Mastercard.com

Press Office of Mastercard in Kazakhstan
Julia Erlykina
Tel.: +7 (727) 264 67 37
e-mail: Julia.Erlykina@pressclub.kz