Which to choose to grow your savings — bank deposit or stock market? Over the past year, the number of Kazakhstani citizens investing in securities has more than doubled, rising from 3.2% to 7.6%. However, despite this explosive growth, the figure remains modest compared to the United States and Western European countries, where the percentage of retail investors reaches 70%. Kazakhstanis still tend to trust bank deposits more - around 55% of Kazakhstan’s citizens keep their savings there.
The goal of the TypiPay startup is to improve the financial literacy of its compatriots, teach them how to invest wisely and not fall for fraudulent promises. The team has developed a secure simulator of stock and cryptocurrency markets, where users can learn practical investment skills without risking their own money. In an interview with ER10 Media, TypiPay founder Batyrzhan Ismukhametov discussed the project’s development, its transformations, mission, and plans for the future.
Follow Kazakhstan’s Startup Movement in the "100 Startup Stories of Kazakhstan", a collaborative project by ER10 Media and Astana Hub. This initiative highlights the most innovative Kazakh startups, showcasing projects that stand out for their creativity and impact. Among the heroes are Astana Hub residents, as well as creators of other innovative technological products and services. The content is available in Kazakh, Russian, and English.
A Long Journey with Unexpected Turns
— Tell us about the development stages of TypiPay. As I understand it, the project has undergone significant changes over time and even operated in other countries.
— Our startup has been active in the market for seven years now. In 2017, we set out to create a social network with financial platform elements. It’s important to recognize that the "premier league" of social networks and messengers includes about ten dominant services like WhatsApp, Telegram, WeChat, or Snap. These platforms handle nearly all communication worldwide.
We wanted to develop a social network that not only facilitated communication but also enabled remote identification, commission-free money transfers within chats, and instant issuance of virtual debit cards.
Another unique feature of our service is status updates. Users could see what their contacts were doing in real-time: driving, relaxing after work, etc. We hypothesized that people don’t always want to message or actively engage, but they would appreciate knowing what their friends or loved ones are up to. It was a form of passive communication that required no effort.
We believed that, through financial integration and various "cool features," we could carve out a segment of the market from the leaders and attract users, particularly younger audiences. We launched in 2018, covering 148 countries.
Between 2018 and 2019, we explored markets worldwide, amassing several million registrations. However, we had to be realistic: we couldn’t break user habits — people continue to heavily rely on top-tier messengers. Users would install our app, use it for a while, and then uninstall it.
— How did you deal with this challenge?
— In 2019, we executed an agile pivot toward FinTech. We decided to launch a service for issuing debit cards without identity verification, linked to phone numbers. It was essentially a digital wallet with a limited balance. The more personal data a client disclosed, the more features became available. At that time, our team decided to focus on the Russian market. Russia had more lenient financial regulations, allowing for the issuance of anonymous debit cards. We partnered with Moscow Industrial Bank, and together, we achieved notable results, issuing over 100 000 cards. At one point, our service became so popular that the bank’s servers struggled to handle the demand.
At the same time, we worked in Kazakhstan by partnering with RBK Bank to enable remote card issuance using our platform. At one point, we had issued and maintained 40 000 active cards. We even managed to onboard several companies for payroll projects, allowing users to access RBK Bank services directly within TypiPay.
However, this chapter also came to an end. By 2022, for obvious reasons, we were forced to exit the Russian market and redirect our efforts to the domestic market. Unfortunately, in Kazakhstan, the financial regulator introduced stricter requirements. New regulations mandated that FinTech companies like ours maintain significantly higher authorized capital. This adversely affected the market, as smaller startups lacked the free capital needed to comply with these requirements. As a result, we had to discontinue this project.
— So, you had to pivot again?
— Yes, we decided to move into education and became an EdTech platform. We conducted research and discovered that 93% of Kazakhstanis use online banking. However, when it comes to investing, we are far behind. Last year, only 3% of Kazakhstanis had investment or brokerage accounts. We realized that this sector represents a potential growth point in the future.
We partnered with a brokerage company and a cryptocurrency exchange to launch a stock and cryptocurrency market simulator.
Learning in Fun Mode
— What is the concept behind your updated platform?
— Our platform allows users to open a virtual brokerage or cryptocurrency account where they can practice and experience everything firsthand without risking their own money. Users don’t need to watch dozens of videos or read hundreds of articles. With us, they can quickly learn in a hands-on and easy-to-understand game format. For example, with one click, a person can buy virtual Apple or IBM stocks, feel like an owner of a piece of a global corporation, and observe the profits their shares generate. It doesn’t matter where the user lives or works — they develop an interest in investing.
In addition, users can gift virtual assets — stocks or cryptocurrencies — to other people. This helps our platform grow through word-of-mouth and the social connections of our users.
Today, TypiPay is a social network, an educational platform, and a stock and cryptocurrency market simulator.
— How successful has this shift in focus been?
— I can say that, to date, about 40 000 users have completed at least one virtual transaction on our simulator. We achieved this in just 8–9 months. To put this into perspective, in an economics or finance university, only about 10% of graduates have practical investment experience, according to our estimates. Imagine a large university graduating 1000 economists, but only 100 of them have hands-on experience with stock or cryptocurrency markets.
— How do you monetize your platform?
— The platform itself offers free access to the simulator, starting at a virtual $1000. However, if someone gets a taste for investing and wants to play with larger sums, they can deposit 1000 tenge to receive virtual $10 000. Naturally, this opens up more opportunities in the simulator and makes the experience more engaging.
I can say that the product’s conversion rate is 4% — meaning four out of every hundred users are willing to spend real money on the app.
In general, the revenue we receive is sufficient to support a team of 16 people and further develop the project. At present, we are closing the year with an income of $240 000, and we plan to grow several times over in the next year.
Present and Future
— Does the startup currently need investments?
— At this stage, we are a self-sufficient company. However, we are open to considering proposals from potential investors.
— Do you want your users to become real investors?
— Absolutely. The next step is to cooperate with brokerage companies and cryptocurrency exchanges. Users who have learned how to invest on our platform will consciously open brokerage accounts and start investing their real money in securities and cryptocurrencies.
— Do you plan to grow within Kazakhstan or expand into international markets?
— Everyone knows that Kazakhstan has a relatively small market, but it’s excellent for testing hypotheses, piloting, and refining a product. Once a fully developed product is created, scaling to international markets becomes essential. The TypiPay app is already entering India, the USA, and Brazil. This year, we are wrapping up with launches in these three major markets, and next year, we are planning a large-scale global expansion.
— Do you aim to become a major player or even a unicorn?
— It would be wrong to say we don’t have such ambitions (laughs). I believe that within two years, we can build a loyal audience of one million users who, after training, can transition to real trading platforms through our partnership program. Today, almost any exchange is willing to pay you 40% of their profits for each referred client - for life.
— Is it challenging to enter new markets?
— Every country has a unique mentality. In the U.S., almost 70% of the population is involved in investing, while in Kazakhstan, the numbers are in the single digits. This requires us to adopt different approaches. On the other hand, this diverse and meticulous research process helps us continually improve our product.
— Are you succeeding in entering foreign markets?
— We launched our expansion only recently, so we can’t boast impressive numbers yet, but I can say there’s interest from users, and our conversion rates are growing.
— How will TypiPay’s functionality develop? Will new features be introduced?
— Let me share a little secret. We plan to launch our own memecoin, TypiPay, on the platform. More details will be revealed later.
A Worthy Mission
— What is the mission of your startup?
— Our mission is to improve people's financial literacy. Our project offers fast education, where individuals learn in a simple and practical manner. This knowledge helps you increase your personal wealth, provide additional income for your family, and avoid falling victim to scammers.
In Kazakhstan, every year, around 30 local and 3–4 large financial pyramids emerge. Moreover, nearly one million people annually are impacted by scams in one way or another. Essentially, this stems from a lack of financial literacy. Some people still believe it’s possible to earn monthly profits of 50–100%. Investment experience shows that this is unrealistic. People learn that even highly successful giants like Apple, SpaceX, or Toyota grow by just a few percent annually, and that is considered a strong result.
Our plan for the next 10 years is to educate 100 million people on stock market operations. I believe this is a worthy goal and mission.
— You’ve worked as an employee, but today you’re an entrepreneur. Which experience do you prefer?
— Yes, I have held positions of responsibility in both international and domestic companies. It was a valuable experience where I learned the basics of management and communication, which have proven crucial in entrepreneurship and building a product team.
However, I prefer entrepreneurship. It gives me more freedom to set my own goals. On the other hand, it’s a tremendous responsibility for my team. We have 16 employees, and each of them supports their family with their salary. This means the well-being of many people depends on my actions.
I believe that only those who are ready to approach entrepreneurship responsibly and thoughtfully should pursue it.
— What inspires you in your work?
— I’m inspired by our users, their feedback, and their successes. I’m delighted to see our audience grow and watch people broaden their horizons. I see that today we provide more practical, subject-specific education than all the economic universities in the country. It reinforces my confidence that we are doing the right thing.
— Which sport would you associate with your entrepreneurial personality?
— I think it’s walking! Walking is essential — 10 kilometers a day. Walking forms the basis of the thought process. How many bright ideas come during a walk!
