Page 12 - bne_Tech_11_2020

Fintech & E-commerce
November 2020 www.intellinews.com I Page 12
The Sovest and Rocketbank factors were key contributors to revenue growth deceleration quarter on quarter (from 23% in 2Q20) and y/y boost to the bottom line.
Qiwi's total payment volumes returned to growth (+11% versus -6% in 2Q20). The driver for payment volumes growth, according to the company, remains sports betting and the self-employed segment (reflected in 25% and 29% increases in e-commerce and money remittances volumes).
The number of active e-wallets declined
12% y/y to 19.7mn, making a second quarter of decline, attributed by the company to mostly to technical factors (regulatory change, recognition approach) and some enhancement of compliance procedures. Qiwi notes it did not have meaningful impact on its financials.
The company set the quarterly dividend per share at $0.34 per share (2% yield) and confirmed the guidance for 2020 of 7-15% net revenue growth (+3-10% payments revenue), +35-50% adj. net income growth.
Estonian fintech firm
to install cardless ATMs in Moldova
Estonian fintech company IuteCredit that is known for having introduced cardless ATMs in Estonia now has secured a contract to install them in Moldova.
IuteCredit is an Estonian financial technology company operating in the international market. The company operates in Albania, Bosnia & Herzegovina, Bulgaria, Moldova and North
Qiwi noted increased epidemiological risks, yet the company sees "diverse opportunities for growth in mid and long term," with the main focus currently being on improving efficiency of its operations.
"We believe the company is well set to deliver on its FY guidance, despite risks to 4Q20 amid tightening epidemiological measures globally," BCS GM commented, while reiterating a Buy recommendation on Qiwi's shares.
Sova Capital on November 19 also maintained a Buy recommendation on Qiwi shares, but warned of still persisting regulatory risks for the payment system.
"The Russian government has progressed with the proposed changes to regulating the country’s sports betting industry. A draft law was introduced that aims to centralise all processing operations for sports betting payments with one provider, but it is unclear whether Qiwi would remain such a provider," Sova analysts remind.
Should Qiwi no longer be able to process sports betting payments if or when such a law is adopted, 20% or more of its payment volumes could be at risk, according to Sova's estimates.
Macedonia, offering mainly instalment and small loans with a maturity of up to 36 months and car loans with a maturity of 60 months.
"To receive cash from an ATM, you need an ATM and you need cash. The rest is superfluous. IuteCredit's new, cardless ATMs have been developed in such a way that a plastic card is no longer needed. Money can be withdrawn with