J’son & Partners Consulting in Russia announced in 2012 POS terminals are the most popular method for electronic payments. Experts estimate turnover of payment terminals, which are part of the market of electronic payment systems (EPS) in 2012 amounted to 915 billion rubles, or 51% of the estimated turnover of the CSE. By 2017, the share of turnover is expected payment terminals in EPS drops to 30%.
As noted in the study J’son & Partners Consulting overall turnover of EPS (part of which is the market of payment terminals) in Russia in 2012 will amount to 1.811 billion rubles, an increase of 24% compared to the same period in 2011 (1,462 billion) . In this case, despite the fact that the market of payment terminals is more than half of all of EPS (based on 2012 915 billion rubles, or 51% of the estimated turnover of the CSE), its share is reduced. In 2011, the share of market turnover of payment terminals was 59% in the turnover of EPS. And by 2017, according to forecasts J’son & Partners, the share of turnover of payment terminals in EPS drops to 30% to 1.122 billion rubles, while the turnover of the market will be at 3.740 billion.
The Russian market of payment terminals is divided into two main sectors – banking and non-bank payment terminals. As for the segment of non-payment terminal (NTP), an estimated J’son & Partners Consulting in 2012, Russia had 227,900 NTP, and by 2017, that number had decreased to 215,700. Reduction experts predict will occur due to increased competition with bank terminals and increasing popularity of remote financial services. In the market of non-payment terminals in Russia, there are several players, among them are the largest terminal networks QIWI, CyberPlat (“CyberPlat”) and “JCB”.
Turnover of NTP according to J’son & Partners in 2012 amounted to 762 billion rubles, an increase of 4.5% compared to the same period in 2011 (729 billion rubles). The share of non-bank turnover of sales terminals payment terminals with in 2012 was 83%. In 2011, the combined total QIWI, CyberPlat and “JCB” in terms of turnover on the market more than 80%. By the end of 2017 turnover of the NTP will be about 875 billion rubles, while the average annual growth rate (CAGR) in the years 2012-2017 will be 3%, and the share of non-bank turnover of sales terminals payment terminals at the same time in 2017 will drop to 78%.
The number of transactions in the market NTP in 2012 was 3.863 billion, which is 7% lower than in 2011 (4.141 billion). Forecast to J’son & Partners Consulting, despite the increase in turnover of the NTP in 2017 the number of transactions decreased to 3.135 billion, which is due to increase of remittances (both towards electronic purses, and in the direction of money transfer) that will increase the size of one transaction.
It is also noted that the average commission rate on the market of non-bank payment terminals 2008-2012, an annual increase in 2012 was 6.3%. However, according to J’son & Partners Consulting, increasing competition in the market of instant payments affect the amount of the average commission to decrease. It is predicted that the average commission rate in 2017 will be 6%.
Segment relative to bank payment terminals (BPT), experts J’son & Partners Consulting provides the following data: in 2012, Russia had 54,700 BPL, of which 25% are located in Moscow, St. Petersburg 6% and 69% in other regions . By 2017, the number of bank payment terminals will be about 70,600, while the share of the two capitals will not change. In the Russian market there are several BPL players, among which the largest are the “Savings Bank”, “Ocean Bank”, “PSB”, “Credit Bank of Moscow” and “Russian Standard Bank”.
Turnover of BPL according to a study in 2012 amounted to 153 billion rubles, an increase of 19% compared to the same period in 2011 (129 billion rubles). Share of turnover of sales of bank terminals payment terminals while in 2012 was 17%. In 2017, turnover of the BPL will be about 247 billion rubles, while the annual growth rate in the years 2012-2017 will be 10% and the share of turnover of sales of bank terminals payment terminals at the same time in 2017 will increase to 22%.
The number of transactions in the market in 2012, BCT was 1.405 billion, an 8% increase compared to 2011 (1.295 billion). Forecast to J’son & Partners Consulting, by 2017 the number of transactions will remain approximately at the same level (1.404 billion).
The average fees on the market, BPT from 2008 to 2012, peaking at 5.2% in 2010. In 2012, the average fee was 5.1%. Forecast to J’son & Partners, in 2017, the average commission rate will decrease to 4.9%. Decline in the market BPT Commission experts primarily attributed to competition from non-bank payment terminals.
Posted by Roman Mikhaelov