The volume of transactions of Russians on payment cards, since 2012, has raised by 2 times- to 41.84 trillion rubles. Their number for this period has raised 3.5 times- up to 20.4 billion, according to the Bank of Russia, which Izvestia got no stranger to. The share of transactions for non-cash payment for goods and services in their total volume is expanding, and for cash withdrawals in ATMs- is declining. In expert’s words, this leads to the enhancement of payment system and the introduction of contactless payment platforms. Now non-cash payment in retail hit 38% of the total turnover, but their share may surpass 50% down the road.
The number of operations for extracting cash resembled that of utilizing the card in trade networks. By 2015, the ratio was 30/70 and by 2017, non-cash payment already grasps 84% of all transactions with bank cards.
This is verified by the truth that cards were utilized for everyday trade, according to Bogdan Zvarich, a senior analyst at IK “Freedom Finance”. This is demonstrated by a surge in the average check when paying with cards, he adds.
Cited by the Central Bank, a total of 268.5 million payment cards have been launched in Russia, 157.6 million of which have been traded. The number of card transactions, during the last six years, has increased by 3.5 times and hit 20.4 billion. In the previous year, the Russians withdrew 27.3 trillion rubles from a bank card and spent 1.45 trillion of non-cash payment. The average amount of withdrawing cash in ATMs has increased from 6.3 thousand rubles to 8.2 thousand rubles since 2012, while the average check when purchasing goods and services has declined from 1,1 thousand to 855 rubles. Hence, the cards were utilized for small-scale disbursement every day.
The controversy in favor of non-cash payment in daily life is around simplicity and security, cited by Promsvyazbank’s chief analyst Dmitry Monastyrshin. You can not save money, do not convert, besides, banks frequently deliver cash-back and bonuses when utilizing cards in retail chains.
It is crucial that bank cards now approved not only big retail chains but also small-scale shops, and sometimes individual entrepreneurs.
Besides, the contactless payments can be possibly used with the card itself or a smartphone by NFC technology. Mikhail Fedoseev, director of business development and digital technologies, Mastercard, believes that Russia is the lead country in the world that uses non-cash payment with the smartphone.