The cashless payment system, based on mobile banking and QR codes, seemed convenient, but in 2026 there was a failure. Many small businesses began to demand cash for their goods and services.
Kaktus.media investigated the reasons why entrepreneurs are abandoning cashless payments and are not eager to obtain a special QR code from banks.
New Rules from 2026
The chief inspector of the GNS's bank interaction department, Ayana Aitieva, explained to Kaktus.media that as of January 1, 2026, a ban on the use of personal payment instruments (such as bank cards and electronic wallets) for business purposes came into effect. Previously, there were no sanctions for violating this ban.“We explained to businesses how to conduct their activities correctly. By law, banks are required to monitor all financial flows to personal and business accounts of clients. For example, if an individual entrepreneur uses a personal electronic wallet for business, the bank must track the purpose of those funds,” she noted.
“Previously, bank control was insufficient, and the tax service took on the functions of administrative responsibility. Now, using personal wallets for business purposes not only incurs liability but also fines,” Aitieva added.According to the legislation, personal accounts can only be used for personal needs, such as purchases and payment of utility bills. For business, a separate settlement account must be opened, and payments must be received on it.
“If the bank discovers that a personal wallet is being used for entrepreneurial purposes, it can take measures, including blocking the account,” she emphasized.
The main reason for the ban on using personal QR codes is control. The tax service has access only to business accounts and sees all income and expenses, while personal accounts remain outside of control.
Fines for Violations
What measures have been introduced that caused such a reaction among entrepreneurs? Two articles related to cashless payments have appeared in the Code of Offenses:- Article 317, part 1 - for using cashless instruments registered to other individuals, the first time - a warning, repeated violation - a fine of 65,000 soms for legal entities.
- Article 317, part 2 - for using personal cashless instruments, the first time - a warning, repeated cases - a fine from 28,000 to 65,000 soms.
In addition, refusing cashless payments can result in a fine. Article 27 of the KR Law "On Consumer Rights Protection" prohibits sellers from restricting buyers in their choice of payment method. In case of violation, one can appeal to the antimonopoly service.
There is also a government decree requiring certain entities to establish cashless instruments. The absence of such instruments may also be grounds for a complaint to the tax service, which will lead to a fine of 1,000 soms for individuals and 5,000 soms for legal entities.
Return to Cash Payments
In practice, many entrepreneurs, fearing fines, have started to abandon cashless payments. This is especially noticeable in markets.At the end of December, QR codes were widely available, but since the beginning of January, the situation has changed. Sellers began to refuse cashless payments, and when asked about transfers, they often responded with a refusal.
- Can I pay with a QR code? - I ask the meat seller.
- No, only cash.
- Why? I always paid cashless. I don’t have cash.
- There’s an ATM at the entrance. I don’t have a QR code.
This kind of dialogue has become common not only in Bishkek but also in regions where the transition to new payment methods was slower, but the rollback happened faster.
“We were told that we cannot accept payments on our QR code, there will be inspections from the tax service, and fines can reach 30,000 soms. I don’t even make that much in a day. It’s better if they pay in cash,” shared a cake seller from Kara-Balta.
Another seller from Bishkek noted that customers leave due to the refusal of cashless payments. Conflicts arise as people demand the option to choose. Previously, he accepted money on his electronic wallet, but now he fears fines.
“I pay all my taxes. I work under a patent and pay insurance contributions. Now I need to open a settlement account, but what if I mix up and send money to the wrong place? Banks scare me that my wallet might stop working if money comes in. I don’t know what to do,” he wonders.
Reasons for Refusing the New QR Code
On one hand, the tax service requires compliance with the rules, but many entrepreneurs do not want to open settlement accounts in banks.“The unwillingness to use QR codes is not due to the ban, but to a lack of understanding of which QR code is permissible. If it’s a business QR, then it’s fine; if it’s personal, then it’s not,” Aitieva noted.
If it were that simple, entrepreneurs would have switched to the correct QR codes long ago. But there are many pitfalls in this issue.
- Not everyone wants to register with the tax service
- Bureaucracy
Commissions and ExpensesMany banks charge commissions for accepting payments via QR code, up to 1%. For small businesses, this can be a significant amount.
For example, when receiving 100,000 soms, the bank will withhold from 500 to 1,000 soms. Additionally, there may be extra fees for account maintenance and cash withdrawals.
Banks set limits on transactions and payment amounts. There are no such restrictions for individuals.
Blocking Electronic Wallets
It is important to note that commercial banks do not block individual entrepreneur accounts, but personal accounts and electronic wallets can be blocked.The reason may be suspicion of using personal accounts for business or a request from the tax service to apply measures to specific individuals. Such letters may arrive after inspections.
The editorial office of Kaktus.media was contacted by an accountant whose clients faced similar problems. One client was without funds for two days until he returned to Bishkek and found out the reasons for the blockage. In another case, a client received a message from the bank requesting an explanation for frequent cash withdrawals from her personal account.
Bank representatives confirmed that such cases can occur but are not widespread. This is because banks also bear financial responsibility for compliance with the rules.
“The tax service identifies cases of using personal accounts for business and sends information to banks. Banks decide what measures to take,” Aitieva explained.
“There have been cases where the National Bank fined banks for insufficient control. Now this issue will be under close scrutiny,” she added.Banks risk serious fines, so it is easier to block a suspicious account than to deal with the consequences later.
Will Small Business Go Underground?
The GNS has not yet recorded mass refusals of cashless payments, but some cases do exist.The head of the Markets Association, Sergey Ponomarev, believes that small businesses will not be able to fully return to cash payments. Competition and demand for cashless payments will compel entrepreneurs to adapt.
“Demand always creates supply. Competition in the service and trade sectors will force businesses to work with QR codes, as this is convenient for customers,” Ponomarev stated.
“Business always strives to meet needs. If the population is accustomed to cashless payments, then they will actively use them,” he added.“If customers are denied cashless payment, they may go to competitors. Regular customers are an important source of income. Therefore, businesses will have to adapt,” he noted.
Fines and Complex Rules, Then Simplification
Despite the tax service's statements that there is no mass refusal of cashless payments, the problem exists. This was confirmed by a recent GNS meeting dedicated to cashless payment issues.The meeting involved representatives from various government agencies and banks, aimed at developing joint solutions to simplify conditions for entrepreneurs and consumers.
“Practical problems faced by entrepreneurs were discussed, as well as issues of ensuring convenience and security of payments,” the tax service reported.
“Difficulties in transitioning to payment instruments registered to legal entities and individual entrepreneurs were discussed. Resolving these issues is within the competence of banks,” the tax service added.There was also talk about the need to speed up the crediting of funds, optimize tariffs, and simplify the procedures for opening accounts and wallets.
The GNS expressed its readiness for cooperation; however, in practice, businesses continue to face bureaucracy, additional expenses, and the risk of account blocking. Therefore, many entrepreneurs conclude that it is easier to work with cash.
