How cybersecurity knowledge impacts digital payments in Bishkek?

Abstract

The rapid digital transformation in Kyrgyzstan has significantly increased the use of digital payments, particularly the urban centres and the capital of Bishkek. Since 2016, government initiatives have promoted non-cash transactions, a shift that was further accelerated by the COVID-19 pandemic. Notably, QR code payments surged from mere thousands in 2022 to millions in 2023, and mobile banking apps like Mbank have seen millions of downloads. By the end of 2024, the National Bank of the Kyrgyz Republic reported 9.1 million bank cards in circulation, illustrating widespread adoption of digital financial services. However, this progress has been accompanied by a rise in cybercrime targeting digital payment users. Early 2024 data indicate over 1,000 reported cyber fraud cases in Kyrgyz republic, with average financial losses of approximately 43,000 soms (around 490 USD) per victim. Experts attribute much of this vulnerability to a general lack of cybersecurity awareness among the population. While numerous studies have examined digital payment adoption and cybersecurity in the Global South-including India, the Middle East, and parts of Eastern Europe - there remains a significant research gap in the context of Central Asia. This study addresses this gap by focusing on Bishkek, the capital of Kyrgyzstan, to evaluate residents’ average cybersecurity knowledge and how it influences the usage and safety of their digital payment behavior. A stratified random survey of 387 participants, selected proportionally across Bishkek’s four districts, forms the core of this research. The primary research question investigates: “How does cybersecurity knowledge affect the use of digital payments in Bishkek?” Understanding this relationship is crucial for designing effective public awareness campaigns and policies aimed at enhancing cybersecurity literacy and protecting consumers in the evolving digital economy of Kyrgyz Republic.