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bne Tech
March 8, 2019 www.intellinews.com I Page 23
Russian payment system Mir launches contactless payment service
Russian payment system Mir has launched
a contactless payment service MirPay, the National System of Payment Cards (NSPK) announced on March 4. The application will be available for Android smartphone using clients of Russian Agricultural Bank, Centr-Invest, SMP bank, Rossiya Bank, the Moscow Credit Bank, Promsvyazbank, and the Russian National Commercial Bank.
By the end of the year the contactless payment would be available in any POS-terminal ready to receive contactless payment, NSPK claims. The new service is likely to gain popularity given the growing number of card transactions and high mobile penetration in Russia.
The Mir card payment and NSPK national payment system was created by the CBR in
2015 to cut reliance on Western payment systems under pressure from sanctions.
Both Visa and MasterCard were forced to cut ties with a number of Russian banks in 2014 that were subject to US sanctions imposed over Russia's actions in Ukraine, starting with the annexation of Crimea. At the time, these companies had pro- cessed 90% of all payments in Russia.
Although initially resisted by the banks, the Mir payment card has gathered momentum with 176 local lenders adopting the system as of January 2017, and 97% of ATMs and over 75% of payment terminals accepting the card.
Russian Post to increase shipments from China by 15-20%
Russian Post (Pochta Rossii) plans to expand the frequency and coverage of cargo flights to China, potentially increasing the turnover by 15- 20%, Vedomosti daily reported on March 4 citing the representatives of the company.
At the end of 2018 Russian Post said it will boost e-commerce infrastructure in 34 Russian cities and open express delivery channels from China, speeding up deliveries from two-three weeks to one week, and in 18-24 months to up to three days.
China accounts for over 90% of incoming interna- tional parcels and cargo shipments, most of which
is e-commerce. In 2018 the number of shipments from China to Russia increased by 26% to 320mn on about two to five cargo weekly flight by the Rus- sian Post. The Post has about 90% share in the delivery of foreign e-commerce outlets to Russia.
Russia's VTB Bank is affiliated with Russian Post and along with country's largest Sberbank is the main financial anchors for e-commerce development in Russia. VTB is also one of
the shareholders in Magnit retail chain, and cooperation with the Russian Post was seen as a possible platform for Magnit in expanding into online retail.