Market Size of Russia Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 13.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Russia Payments Market Analysis
The transformation of Russia's payment market is changing rapidly and unpredictably against the backdrop of trends, technology, and other challenges. Consumers are enthusiastic about new technologies and increasingly favor card-based payments for low-value transactions. The growing e-commerce market, the emergence of alternative payments, the rollout of mobile-only banking, and the increasing popularity of contactless payments will continue to drive electronic payments in the country. The market is expected to grow at a CAGR of 13.6% during the forecast period (2022 - 2027).
- The relatively low interbank charges charged to Mir cards and the loyalty programs associated with card transactions encourage their use in Russia. Meanwhile, financial inclusion initiatives and improved banking infrastructure have also contributed to the rise of the Russian payment market. International system providers such as Mastercard and Visa continue to dominate the Russian debit card market, but their share is declining due to the increasing acceptance of Mir cards.
- Cards are gaining momentum, and more and more people are using banks. Local eWallets are well known in the region and outperform international players such as PayPal. Online banking is emerging as a new trend, providing a viable alternative to e-commerce. Historically a cash-oriented society, local Russian consumers are accustomed to new technologies and are confident in their safety. The national e-commerce market is expected to grow.
- The use of cash payments in the economy is an undesirable factor, as it now forms the basis for the development of the informal economy. There is a reason for the country's government's willingness to switch to cashless payment transactions. The implementation of many government programs relies on the development of cashless payments, especially in developing regions. Cashless payments allow people to control funds transfer and evaluate their source.
- Moreover, 2020 was a milestone year not only for the Russian retail business but also for e-commerce. The COVID-19 pandemic is the rapid growth of e-commerce and most retail internet. To adapt to a new digital era where consumers avoid traditional offline store shopping and maintain a competitive advantage in sales volume, number of active customers, and quality of service provided. This led to increase in digital and mobile payments in the country
