This material is provided by the PLUS Journal (www.plusworld.org) - the most competent specialized multiregional periodical on Eurasian market (Russia, FSU countries etc.).

Russian market of payments and innovations: Right time for new opportunities

Notwithstanding the continuing global economic crisis, Russia is still one of the most innovative and fast developing markets of payments

To get more detailed information about the Russian and CIS payment card market and its infrastructure please contact:

Vice President, Member of Board | Business Development 
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konstantin@plusworld.ru

Contents:

Part 1: Issuing
Part 2: Acquiring Infrastructure
Part 3: Russian payment card market in comparison
Part 4: Trends and Prospects

Part 2:

Acquiring Infrastructure

According to the Central Bank of Russia in 2009 the tendency of development of acquiring infrastructure in Russia remained unchanged. Moreover, in the same period the infrastructure growth rate significantly exceeded the growth rate of card issue (increase of issue - 5.7%, infrastructure - 10.6%). In experts' opinion this tendency will continue in 2010.

According to the Bank of Russia, as of January 1, 2010, lending institutions were dispensing cash against cards through 75.9 thousand electronic terminals and 84.5 thousand ATMs (79.5 thousand ATMs enhanced with the service payment function). In 2009 the growth rate for the given devices showed 22.1%, 19.0% and 21.6% respectively. The number of cash-in ATMs as of the beginning of 2010 equaled to 23.3 thousand devices. To ensure card payments at merchants, lending institutions installed 354.4 thousand electronic terminals and 52.8 thousand of imprinters (the growth rate of 6.3% and 15.3% respectively), as well as 17 thousand electronic remote access terminals.

It is worthwhile to say that as of the beginning of 2010, 42% of ATMs, 69% electronic terminals and 83% imprinters installed in Russia belong to 10 out of 700 issuing and acquiring banks. At that, the portion of the three biggest lending institutions (owners of the infrastructure) equaled to 29% ATMs, 49% electronic terminals and 27% imprinters.

Another feature of the Russian acquiring network is that it is concentrated in major cities.

According to RBC, Sberbank of Russia is the leading lending institution per number of installed ATMs: by January 1, 2010, the bank installed and commissioned about 22,907 ATMs, 23% of which support automated cash-in function.

Second place per number of ATMs holds VTB24 with 4,050 ATMs installed, BANK URALSIB is on the third place (2,251 ATMs), Master-Bank is the fourth (2,214 ATMs), and Alfa Bank is the last in the TOP5 (2,102 ATMs).

Next "Part 3: Russian payment card market in comparison"