Market Trends of Russia Payments Industry
This section covers the major market trends shaping the Russia Payments Market according to our research experts:
The retail market to see a significant rise in the country's payment solutions
- Retail payments have become an integral part of life. Innovations and initiatives of the largest players in the market change the behavioral trends and develop new habits for all participants in the economy.
- The role of new innovations has become even more evident when convenient providers such as banks, and technological companies) implemented FinTech solutions to provide accessible mobile wallets, contactless payments, and other consumer products to the masses.
- The combination of expectations from digital natives and the government's desire to promote financial inclusion and reduce cash use is driving the rapid growth of electronic payments and bringing a new generation of mobile and FinTech innovators to the payments market in the country.
- Moreover. in April 2022, Russia's state-owned development bank, VEB, and India's national bank Reserve Bank of India (RBI), have likely finalized an alternative payment platform to facilitate bilateral business after Western sanctions firewalled Moscow's access to the globally used Swift banking platform. The new payments system will be installed at the headquarters of both the RBI and the VEB. These new innovations will help the retail businesses in the country to accelerate their business.
- The growing demand for contactless payments in Russia continues to acquire speed, both in offline stores and online payments. The cooperation of Solidarnost Bank to launch Huawei Pay via mobile phone with UnionPay's financial network will improve the contactless payment options for retail business and other business sectors, especially during the COVID-19 pandemic. Further, UnionPay and Huawei, together with other central Russian banks, have accelerated their mobile contactless payment localization.
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E-commerce to drive the payments market in the country
- The development of e-commerce has positively impacted the economy, especially in various countries. Many researchers outline the development trends in Russia's Internet market today, investigate the obstacles and drivers of e-commerce expansion in Russia, and address the challenges of adapting businesses to the Russian situation.
- E-commerce sales continue to grow in the country with new markets emerging, but existing ones have the potential for further development. The e-commerce market includes the online sale of physical merchandise to individual end-consumers (B2C). This definition includes purchases made through computers and mobile purchases made through smartphones and tablets.
- Further, in February 2022, Moscow and Baku signed the "Declaration on Allied Interactions between Russia and Azerbaijan." The agreement includes protocols to promote mutual use of national currencies, the Ruble, and Newe Manat in reciprocal payments, integration of payment systems including joint services of bank cards, and the development of direct correspondence between banks. This, in turn, leverages the banking e-commerce solutions between the two countries.
- The penetration of Russia withinside the worldwide e-trade marketplace will enhance the performance of overseas exchange operations, toughen its role in the field of commodity exchange, illustrate commercial enterprise ties withinside the location of local and global cooperation, and, in addition, create new jobs in the country. All those elements assist enhance the payments marketplace in the country.
- According to a recent survey by Intellinews, e-commerce is being helped by Russia's overseeing the world in many fintech applications and services. It was the Russian banks that pioneered the idea of sending an SMS message to the phone every time people make a withdrawal from an ATM, and the banks have continued to innovate to the point where Russian fintech provides a better and broader range of services that are available in the US or the UK. E-commerce is evolving much faster, as the largest players already dominate the business and are rapidly expanding their online services in the country.
