How Payment Services market is positioned in
Russia?
Russia is
located in Eastern Europe with an area of around 17,098,242 square km and is
home to around 144.5 million populations, as at 31st December 2018. With around
63.2% smartphone penetration rate, the country has come a long way in
developing the Payment
Services infrastructure and adapting to the simultaneous change in
customer payment preferences for non-cash payment
services. As per our framework, Russia was observed at a ‘Converging’ stage
in terms of its progression towards becoming cashless, ahead of economies such
as India, Indonesia and Saudi Arabia while lagging behind United States and
Australia. The Y-o-Y nominal GDP growth rate was observed to be 7.3% for the
past six years with a simultaneous reduction in the share of Shadow Economy
which stood at around RUB 12.7 Trillion as at 31st December 2018.
The number
of non-cash transactions were recorded at ~ in 2018, an increase by CAGR of ~
during 2013-2018. The non-cash payments were dominated by Payment Cards owing
to its easy availability and high number of users.
While the
introduction of domestic payment system, MIR cards, usage of NFC Technology
backed contactless payments are expected to reap benefits in terms of covering
the unbanked population and increasing the usage of non-cash transactions, the
competitive landscape is expected to become fiercer; thereby taking heavy toll
on margins for every participant. A change in user’s demand for a ubiquitous
payment resource that offers broader reach for payments is gaining traction,
enabling incumbent firms to search for alternative strategies to remain
profitable in the market. Introduction of white label schemes under different
segments and simultaneous partnerships with Big Tech companies are some of the
suggested strategies for the players in the payment services market.
Russia ATM Terminals market: Changing industry
dynamics
The ATM
terminals industry was characterized at a juncture, facing continuous
innovation in terms of cash recyclers with white label scheme of operations and
declining usage and reducing base of installed terminals. The number of
installed ATM Terminals was observed to be ~ as at 31st December, which
processed around ~ number of transactions in 2018. The annual volume of
transaction per ATM terminal is continuously rising with a subsequent reduction
in the average value of a transaction; highlighting the usage of ATM terminals
for small value transactions as well.
Segmentation:
By Type of Transactions (Financial and
Non-Financial):
The demand for cash withdrawals transactions have fairly remained around ~
during study period. The increase in the usage of ATM terminals for
non-financial transaction including bill payments has been on the rise, with a
share of around ~% in 2018. The negligible commission charges for payment
through ATM terminals make it a preferred mode for payment by the users.
By Geographical Location:
The
installation of ATM terminals is highly dependent on the population density and
area of the region. the trade-off between cost of installation and the expected
revenue influences the location of installation of the terminal. While Central
Federal district leads the segmentation with ~ % share, regions such as Urals
and Southern Federal district have less number of ATM terminals per 1,000
populations.
Competitive Landscape:
ATM Manufactuers: A concentrated industry space with 4
major players competing on the basis of price, quality, level of innovation,
after sales services through tie-up with ATM Management Company and other
parameters.
ATM Management Company: A highly fragmented market space with
partnerships in different segments being the core business model. The firms
majorly compete on prices of FLM and SLM, SLA, partner manufacturer supported,
geographical areas supported and others.
Snapshot on Cash Management Companies:
There are
majorly 3 players operating in the industry supporting management of
cash-in-transit. Such companies have partnered with installing entities and ATM
management service providers to get contracts. A slow growth in cash-in-transit
management is expected owing to the reducing usage of ATM Terminals for cash
withdrawal transactions.
Future Outlook:
The numbers
of ATM terminals located in Russia are expected to reach ~ by 2025E. This would
be majorly led by the rising profitability concerns of the installing entities
owing to the decrease in the usage of cash by the customer. Introduction of
cash recyclers and implementation of White Label Scheme by ATM management
companies could change the industry dynamics.
Russia POS Termimals Market: Shaping the
Future
The POS
Terminals segment forms a major part of the acquiring business for credit
organizations. The number of POS terminals as at 31st December 2018, stood at ~
facilitating the processing of around ~ number of transactions. A higher commission
charge is detrimental to the increasing installed base of POS terminals by the
small turnover merchants, which lends much space for the new entrant to ease
the pain-point and gain high market share in less time frame. Although the
demand of Mobile POS devices is rising, much innovation in POS Terminals in
terms of contactless, supporting e-wallet and contactless payment transactions
is expected in the coming years. The introduction of white label scheme with
lower commission charges could be the new business model for the players
operating in the industry.
Key
Segments Covered
Russia
Payment Services Market
By Cash and Non-Cash Payments
Russia
Terminals Market (Banking ATMs)
By Transaction Type (Financial and
Non-Financial)
By Geographical Location (Federal
Districts wise)
Russia
Terminals Market (POS Terminals)
By End-User (Retail, Delivery,
Restaurant, Healthcare and Others)
By Type of Devices (Fixed and Mobile)
By Geographical Location (Federal
Districts wise)
Russia
Payment Cards Market
By Type of Cards (Debit and Credit
Cards)
By Type of Cardholder (Individual and
Legal Entities)
By Type of Transactions (Cash
Withdrawals, Payment Transactions and Others)
Russia
Payment Aggregators Market
By Type of Merchant Services (Payment
Aggregator, Payment Gateways and Particular Instruments)
Time
Period Captured in the Report:
Historical
Period – 2013-2018
Forecast
Period – 2018-2025
Companies
Covered:
ATM Terminals Market
NCR Corporation
Diebold Nixdorf
Nautilus Hyosung
Oki
Indemit,
Lanit ATM,
MultiCarta
Ridgast
POS Terminals Market
Ingenico
Verifone
PAX
E-Money Operators
Yandex.Money
QIWI
WebMoney
PayPal
Payment Aggregators Market
Yandex.Checkout
Robokassa
UnitPay
Payeer
PayAnyWay
Payment Cards Market
VISA
MasterCard
NSPK,
Sberbank
Alfa Bank
VTB 24
Novacard
Rosan Finance
Alioth
Key
Topics Covered in the Report
Demographic Analysis of Russia
Consumer Profile in Russia
Economic Analysis of Russia
Shadow Economy of Russia
Consumer Adaptability of Non-Cash
Payments Russia
Payment Infrastructure of Non-Cash
Payments Russia
Ken Research Framework of Payments
Landscape
Cross Comparison of Russia with other
developed, developing and emerging economies
Russia ATM Terminals Market Overview,
Market Size and Introduction
Competitive Landscape of ATM
Manufacturers and ATM Management Companies
Future Outlook on ATM Terminals
industry by Number of ATM Terminals and Number of Transactions
Russia POS Terminals Market Overview,
Genesis and Size
Competitive Landscape of POS Terminal
Manufacturers including Market share and Company Profiles
Future Outlook of POS Terminals; By
Installed base, Number of Transactions and By Type of Devices
Russia Payment Cards Market Overview,
Genesis and Market Size
Card Holder Profile in Russia
Competitive Landscape of Issuers and
Payment System Operators in Payment Cards Market
Snapshot on Card Manufacturing
Companies
Future Outlook of Payment Cards
Industry; By Number of Users, By Number of Cards in Circulation, By Type of Cards
and By Type of Transactions
Russia E-Money Market Introduction,
Overview and Genesis
Company Profile of Yandex.Money, QIWI,
WebMoney and PayPal
Russia Payment Aggregator Market
Introduction, Overview and Market Size
Competitive Landscape of Major Players
Company Profile of Yandex.Checkout,
Robokassa, UnitPay, Payeer and PayAnyWay
Future Outlook of Russia Payment
Aggregator Market
Analyst Recommendations for Russia
Payment Services Market
Suggested Strategies to ensure
Business Sustainability
For
more information, refer to below link:
Related
Reports:
Contact
Us:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-9015378249
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