Finance
How digital payments are reshaping a fast-growing digital banking market
Digital payments are becoming an increasingly common part of everyday life in Uzbekistan, helping bring more consumers into the formal financial system and increasing demand for services beyond basic transactions.
According to a financial inclusion survey conducted by the Central Bank of Uzbekistan with support from the Asian Development Bank, 71.17% of respondents reported making or receiving at least one digital payment in 2025, compared with 39% in 2021.
The increase follows several years of policies aimed at expanding financial inclusion, encouraging electronic payments and introducing digital tools such as remote identification systems for banking customers.
Interviews conducted by Euronews on the sidelines of the Tashkent International Investment Forum (TIIF) suggest that the rapid adoption of digital payments is now beginning to influence wider parts of the financial sector, from lending and insurance to investment products and banking services for businesses.
Digital payments enter the mainstream
Industry executives point to a combination of demographic, technological and regulatory factors behind the growth of digital financial services.
Nikolay Seleznyov, co-founder of Uzum, a company active in e-commerce, digital payments and financial services, said the expansion is bringing more people into the banking system.
“More and more people are becoming bank customers. And this trend is irreversible.”
Oliver Hughes, chairman of TBC Uzbekistan, a digital bank operating through the TBC UZ and Payme applications, pointed to the country’s young population and widespread use of mobile technology as factors supporting the shift towards digital services.
The trend is also affecting established lenders. Dmitry Sapronov, deputy chairman of Ipoteka Bank, which became part of Hungary’s OTP Group in 2023, said customer demand for digital services has increased significantly in recent years, requiring banks to rethink how they deliver products and interact with clients.
Regulation and infrastructure
Executives said the growth of digital finance has been supported by both regulatory changes and investment in digital infrastructure.
The Central Bank and other institutions have introduced measures aimed at expanding financial inclusion and encouraging electronic payments, while digital identification systems have made it easier for consumers to access banking products remotely.
“The digital ID product was one of the biggest enablers here for all the players in the financial services industry,” Seleznyov said.
According to him, digital identification has reduced onboarding times from days to seconds, allowing financial institutions to verify customers remotely and expand access to services.
At the same time, Hughes argued that regulation remains a critical part of the sector’s development as more financial activity moves online.
“Regulation is always important because it’s people’s money, it’s people’s data.”
Sapronov also pointed to the need for continued investment in banking technology, saying the pace of development is creating pressure on institutions to modernise their systems.
Beyond everyday payments
While digital transactions are becoming more widespread, executives said many financial products remain at an earlier stage of development.
Sapronov said the transformation extends beyond individual products, affecting how banks operate, deliver services and interact with customers.
“This transformation touched all aspects of the banking operation, products, process, digitalisation, branch network, almost everything.”
His comments reflect a broader shift within the sector as banks adapt to customers who increasingly expect services to be available through digital channels.
Hughes highlighted insurance, investment products and services for micro, small and medium-sized businesses as areas where adoption remains relatively limited.
“The level of penetration of banking services is still fairly low.”
He also argued that retail investment products available through mobile applications are only beginning to emerge in Uzbekistan.
Areas that still need development
Despite the rapid growth in digital payments, executives identified several areas where further development is still needed.
Seleznyov also pointed to the importance of maintaining both digital and physical infrastructure, including payment terminals and cash access points, as consumers continue to move between cash and digital transactions.
Sapronov described technology as one of the sector’s main challenges, arguing that demand for digital services is growing faster than some parts of the industry’s infrastructure.
“The challenges are related to tech because the country is developing so fast, and in terms of technology, the banking sector is quite underdeveloped.”