Russia is a leader in growth of online payments
According to recent research from PwC, Russia has one of the highest e-commerce growth rates in the world. In 2019, almost three-quarters of Russian users purchased items online at least once a month. Of these, 79% used a smartphone for purchases. The most active buyers were young people: 86% of Millenials made purchases online.
This activity is confirmed by research data from the Boston Consulting Group. According to the BCG forecast, over the next few years, Russia will continue to show high growth in revenue from online payments. At the moment, Russia is the world leader in the number of tokenized transactions that are used in mobile contactless payments, for paying bills and online subscriptions, and for making one-click purchases on frequently visited sites.
Russian users prefer bank cards
Bank cards remain the most popular payment method, with 90.5% of users paying by card in 2019. According to data from Yandex.Checkout, the largest Russian payment service provider, card payments accounted for 81% of the total volume of payments on the websites of merchants who use the service.
Online payments: preferred payment methods
Pay via desktop/smartphone for goods and services at least once a year:
A study conducted by Yandex.Market and GfK Rus in 2019 showed that increasingly more users prefer prepayment. 65% of users pre-paid purchases in Russian online stores using a bank card. When asked to list advantages, consumers noted that they choose this payment method because it is convenient, easy, and saves time.
Preferred payment method: prepayment
Local players dominate online payment services
Sberbank Online is the most popular electronic payment service in Russia. Four out of five Russian users made at least one payment in it during 2019. Yandex.Money, the payment service from Yandex, is popular with half of Russian users — according to a Mediascope report, 52.8% of users chose Yandex.Money for online payments. PayPal is the third most popular service, with 46.1% of users.
BCG specialists rate Russia as the largest e-wallet market in Europe. In addition to Yandex.Money and PayPal mentioned above, services like Qiwi and WebMoney are also widely used.
Online banking services are also traditionally popular in Russia. Online services from Sberbank, VTB, Alfa-Bank and Tinkoff Bank are in the highest demand.
Online payments: preferred services
Purchase goods and services online from desktops and/or smartphones at least once a year:
The age of the audience is related to the choice of payment methods, but it does not affect the preferences of the majority. VK Pay, the payment service from the popular Russian social network, is more likely to be chosen by users in the 18-24 age group. However, even in this age segment, the most popular services are Sberbank (83.2%), Yandex.Money (45%), and QIWI (40.6%).
Online payments: preferred services by age
Pay via desktop/smartphone for goods and services at least once a year:
Increasingly more users prefer the convenience of contactless payments. In 2019, this group saw continued growth from 38.3% to 44.8%. This payment method is most popular with the audience of 25-34 year olds. Google Pay (22.9%) is the most common choice for contactless payment, followed by Apple Pay (18.9%) and Samsung Pay (15.5%).
Convenience and available options affect conversion to payment
When users can choose from a variety of popular payment methods, they are more likely to make a purchase. This is true not only for spontaneous purchases or in situations where normal payment methods may be inconvenient (like paying while walking or taking public transit on the way to somewhere).
As shown by the experience of Yves Rocher, a major manufacturer and retailer of organic cosmetics, simply integrating additional payment methods can more than double the number of pre-paid purchases and equally reduce the number of returns of purchased items.
