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
Russia Payments Industry Segmentation
The Russian payments market includes various types of payments, including point-of-sale and e-commerce, card payments, and contactless payments. E-commerce payments include online purchases of goods and services. Purchase on the e-commerce website and book travel and accommodation online. For POS, all transactions made at physical sales are included in the following market scope: payment by credit card or debit card. This consists of all face-to-face dealings, not just traditional in-store transactions, regardless of where they occur. In both cases, cash payments are also considered (cash payments for e-commerce sales).
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Russia Payments Market Size Summary
The Russian payments market is undergoing a significant transformation, driven by rapid technological advancements and changing consumer preferences. The shift towards electronic payments is fueled by the growing e-commerce sector, the rise of alternative payment methods, and the increasing adoption of mobile-only banking and contactless payment solutions. Despite the dominance of international card providers like Mastercard and Visa, local initiatives such as the Mir card system are gaining traction, supported by favorable interbank charges and loyalty programs. The market is also witnessing a surge in the use of local eWallets, which are outperforming global competitors like PayPal. This evolution is further accelerated by government efforts to promote financial inclusion and reduce cash dependency, particularly in developing regions.
The COVID-19 pandemic has acted as a catalyst for the expansion of digital and mobile payments, as consumers increasingly turn to online shopping to avoid traditional retail environments. The integration of FinTech solutions by banks and tech companies has made mobile wallets and contactless payments more accessible, aligning with the expectations of digital-savvy consumers. International collaborations, such as the one between Russia's VEB and India's RBI, aim to establish alternative payment platforms in response to Western sanctions, enhancing bilateral trade. The e-commerce landscape in Russia is rapidly evolving, with significant contributions from domestic fintech innovations that offer a wide range of services. As the market becomes more competitive, companies are investing in new solutions and partnerships to expand their e-commerce offerings and improve payment processing capabilities.
Russia Payments Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Stakeholder Analysis
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1.3 Industry Attractiveness-Porter's Five Force Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Evolution of the payments landscape in the country
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1.5 Key market trends pertaining to the growth of cashless transaction in the country
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1.6 Impact of COVID-19 on the payments market in the country
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2. Market Segmentation
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2.1 By Mode of Payment
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2.1.1 Point of Sale
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2.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
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2.1.1.2 Digital Wallet (includes Mobile Wallets)
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2.1.1.3 Cash
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2.1.1.4 Others
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2.1.2 Online Sale
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2.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
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2.1.2.2 Digital Wallet (includes Mobile Wallets)
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2.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
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2.2 By End-user Industry
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2.2.1 Retail
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2.2.2 Entertainment
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2.2.3 Healthcare
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2.2.4 Hospitality
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2.2.5 Other End-user Industries
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Russia Payments Market Size FAQs
What is the current Russia Payments Market size?
The Russia Payments Market is projected to register a CAGR of 13.60% during the forecast period (2024-2029)
Who are the key players in Russia Payments Market?
Ingenico, 2Checkout, YooMoney, OnePay.ru and Tinkoff Bank are the major companies operating in the Russia Payments Market.