Russia Cards And Payments Market

Russia Cards and Payments Market Analysis (2024 to 2029)

Market Data Forecast’s "Russia Cards and Payments Market" report offers a distinct range of possibilities in the market of payment cards along with the accurately validated statistics of operational cards in the market and their total transactional values. It suggests profitable marketing strategies considering the competitive landscape in the market, purchase trends, payment options in online trade and significant government frameworks impacting the overall payment card market of Russia.

Our report kindles the hidden opportunities with dependable information about different types of cash transactions, volumes of cardholders, market proportion, current accounts, increase within the number of cards, credit cards outstanding balances, transactional values, details of the issuers at the side of available banking schemes and futuristic analysis of overall cards and payment marketplace in Russia.

Key Highlights

The growing traction of alternative payments in Russia with the adoption of payment solutions like Alipay, helping Chinese tourists to pay at more than 120,000 VTM POS terminals across Russia, Andriod Pay, with the option to store debit, credit, loyalty, and gift cards details on the wallet, along with Apple Pay and Samsung pay.

There is tough competition among international scheme providers like Visa and MasterCard with the locally made Mir national payment card under the National Payment Card System of Russia. All public sector employees and workers who receive welfare benefits from federal or state funds will migrate to Mir payment cards from July 1, 2018, as per the new federal law. Co-badged cards are issued by American Express, JCB, and MasterCard to be accepted in international markets.

The development of a new platform for instant money transfers called Fast Payments System, approved by the central bank and Russia’s FinTech Association, will be available throughout the year to provide services like customer-to-customer and business-to-customer transactions such as e-commerce payments, taxes, and fines. Customers can make instant and irreversible transactions using their mobile phone, an email address, or an account on social networks.

MARKET OVERVIEW

The cards and payments market in Russia is expected to register a CAGR of 7.88% from 2024 to 2029. Over the past decade, the overall transactions through cards and payments have constantly grown. People are more likely to adopt digital payment options rather than cash payment as it is a safe and efficient way of transaction. Government officials are spending huge amounts on implementing the national program to develop the digital economy. Russia has already spent 1.8 trillion rubles in the past decade, where 1 trillion of the funds was straightly allocated for the digital economy, which is a prominent factor for the Russian cards and payments market to grow during the forecast period.

MARKET DRIVERS

The prominence of reducing cash payments with the rising concentration on implementing cashless transactions that help boost the economy is a key factor for the Russian cards and payments market to grow eventually. The penetration of various applications that provide new opportunities for digital transactions in Russia is prominently to leverage the growth rate of the market. In today’s world, consumers seek advanced features in cashless transactions with the launch of innovative applications. The rising significance of using various cards for payments instead of cash is gearing up with the growth rate of the market.  The most popular payment options Russians use are debit and credit cards.

The card payment options have become easier and more convenient with the rising acceptance of these cards in many areas.

• Bank of Russia launched the National Payment Card System Joint Stock Company in 2014, which further proceeded with the launch of Mir payment system cards. Bank of Russia is substantially elevating the prominence for smooth transactions by providing proper infrastructure for cashless settlements in the Russian Federation. By the end of 2023, the Bank of Russia issued around 287.3 million Mir cards.

It is also evident that most merchants accept credit and debit card payment methods, which promote growth opportunities for the Russian card and payment market.

MARKET RESTRAINTS

• Though the popularity of using cards as an effective payment mode is continuing, in some areas, people are not likely to accept these cards for several reasons. Russia's invasion of Ukraine has brought many changes in the payment procedures due to security reasons. The war between these two countries has degraded the demand for the use of cards and payments. Top companies like Visa, Mastercard, and America Express have suspended their operations in Russia. However, the Bank of Russia is now swiftly filling the gaps by giving support for the local card scheme. China is greatly supporting Russia's banking system by providing UnionPay payment options to fill the gaps in international card payments. At present, 95% of Russians have accounts in local banks that leverage the growth rate of the market.

MARKET OPPORTUNITIES

Penetration of the e-commerce platform is accounted for showcasing huge growth opportunities for digital payment options in Russia. In the recent era, many people have been depending on card transactions for online purchases, and merchants have also varied discounts for online shopping to attract many customers. The growing per capita income and an increasing number of people opening bank accounts with prior net banking systems linked with the cards are likely to promote the growth rate of the Russian cards and payments market.

• According to the European Payments Council, payments in times of war between Russia and Ukraine have changed the complete transaction history in Russia. Card-based payments in many outlets emphasize the banking systems without any interruptions in urban areas. European Union made restrictions on cash transactions that evaluated the need for card transactions. In fact, according to these organizations, card-based transactions helped Russia to ensure financial stability during the invasion.

MARKET CHALLENGES

The rising concern towards safety and privacy through online banking systems is likely to degrade the growth rate of the Russian cards and payments market. Technology is a boom in the banking sector, but it is also a drawback due to the rising number of cyberattacks.

• In July 20245, Russian Banks were cyberattacked by Ukraine. Many large Russian banks were badly hit with the distributed denial of service (DDoS), where services like applications and websites were temporarily shut down due to this attack.

SEGMENTAL INSIGHTS

By Instruments Analysis

• Cards
• Credit Transfers
• Direct Credits
• Cash

The cards segment is deemed to have the largest share of the Russian cards and payments market. The easy availability of the cards that are most effective for carrying money safely without the fear of theft solely leverages the card segment's growth rate. People can easily get the cards with simple steps. Also, many outlets accept card transactions without any restrictions, which are optimized to boost the growth rate of the market. The direct credits segment will likely hit the highest CAGR by the end of 2029.

By Payment Analysis

• Card-based payments
• E-commerce payments
• Alternative Payments

The E-commerce payments segment is mainly for holding a significant share of the Russian cards and payments market. The latest updates on the online shopping platform are completely changing, with the rising number of people completely relying on e-commerce. Russian online stores offer various services to the people, generating huge revenue for the country. Everything is available through online stores, from food delivery to online pharmacies, generating huge revenue. The based payments segment is next in ruling the market’s share.

Country-level analysis

The Russian government is focusing on the launch of central bank digital currency in the coming years. The Central Bank has also initiated testing procedures to upgrade the infrastructure of digital rebels, which will pose huge growth opportunities for the Russian cards and payments market in the coming years. Moscow is likely to gain several lucrative growth opportunities in the coming years. The launch of innovative solutions for cashless payments for tourists by Moscow City Tourism. To increase the tourist flow in Moscow, the committee has come up with a unique way of sorting out the issues with the payments for the tourists. The Foreign Tourist Card was developed by the Russian government, where tourists can transfer money from their account to this account and use it in Moscow without any hassle.

LIST OF KEY PLAYERS IN THE RUSSIA CARDS AND PAYMENTS MARKET

• Sberbank
• VTB24
• OTP Bank
• Russian Standard Bank
• Alfa-Bank
• Tinkoff Bank

Key Questions Answered by the Report

• What is the market size of the Russia Cards and Payments Market?
• What are the major operators and issuers in Russia?
• What is the current state of emerging payment technologies?

Reasons to Purchase this report

• Track key industry trends, opportunities, and threats related to the Russian cards and payments industry and each market within it.
• Gain insights into the competitive landscape of card issuers for both debit cards and pay-later cards.
• Gain insights into marketing strategies used by market players for various card types in Russia.
• Gain insights into key regulations governing the Russia cards and payments market.