Contactless payment methods are becoming increasingly popular in Russia every year. Therefore, two years ago, the use of payment services Apple Pay and Android Pay in Russia caused a decrease in cash withdrawals at ATMs in the country for the first time in 10 years. Nevertheless, while only 2% of the country’s inhabitants pay all purchases in a non-cash way. Why?
Pay with iPhone is becoming more popular
Apple Pay, Google Pay and Samsung Pay account for 13% of all non-cash transactions in Russia, RBC reports citing data from a survey of the Levada Center. Moreover, this payment method is most popular among young people aged 18 to 24 years – almost a third use a smartphone for their purchases. Nevertheless, the higher the age of the user, the less often he takes out an iPhone or other device to make a payment; the older generation prefers cash.
Why is cash use so popular? The problem is not at all the extent of the spread of smartphones or user distrust of Apple, Google or Samsung. Many stores still refuse to accept credit card payments, often referring to a “broken terminal”. In addition, many practice accepting payments by mobile phone number, to which an ordinary bank card of an individual is linked. This minimizes taxation.
Non-cash payments are growing, but most still prefer cash
For comparison, in many European countries more than half of the population has completely switched to the use of non-cash means of payment. And in China, about half a billion people pay only in non-cash way. How do you prefer to pay? Take the survey below and share the result in the comments.
The popularity of Apple Pay in Russia
At the same time, the number of transactions using contactless payment methods is growing, experts say. Over the year, such purchases increased by 26%, despite the fact that payment services officially earned money in Russia only in 2016-2017.
The popularity of contactless payment services can be explained by the fact that it is simple, convenient and even more secure than the traditional way of calculating by bank cards. In addition, there are more and more NFC-enabled smartphones on the market. Russia has repeatedly won first place in the world in the number of non-cash payments using Apple Pay, Samsung Pay and Android Pay payment systems. And the Russian banking sector is better developed in terms of introducing new technologies – those who live in the USA also acknowledge this.
Apple Card in Russia
The growing popularity of Apple Pay does not mean the launch of the Apple Card in Russia. For starters, Apple will have to find a partner bank for this, and also take into account local legislation. However, many say that many banks in Russia have their own “Apple Card” with all the goodies like cashback. There are fewer credit cards, but you can also recover some of the money spent. Cards have free service and there are no interest payments if you repay the debt on time. In Russia, bank customers have long been accustomed to the fact that they can log into the iPhone app using Face ID or Touch ID, see the latest transactions, go to the analytics section, and all expenses will be automatically determined, including by geolocation.