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Russian Market of Mobile Operators Payments, Mobile and SMS-banking

October 2013

Analytical Report (full version)

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Analytical Report (full version)

Russian Market of Mobile Operators Payments, Mobile and SMS-banking
Russian Market of Mobile Operators Payments, Mobile and SMS-banking
October 2013

Russian Market of Mobile Operators Payments, Mobile and SMS-banking

October 2013

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J’son & Partners Consulting presents the results of the research on the Russian mobile operators’ payments, mobile and SMS banking.

 

Mobile payments – are payments executing with the help of mobile terminals (mobile banking, SMS-banking and mobile operators’ payments).

 

Mobile operators’ payment service – electronic payment service that provides an opportunity to pay for goods and services via the mobile phone and/or internet-portal using the funds on the personal account and/or banking card.

 

Mobile banking – service that provide an opportunity to manage clients funds with the use of mobile terminal, pay for goods and services, transfer funds from banking account via mobile phone. The service operates with the use of SMS command (SMS-banking) or via special mobile apps with Internet connection.

 

Turnovers of the mobile payment services, banking terminals, non-banking terminals and electronic money are all part of electronic payments systems market (EPS).

 

According to J’son & Partners Consulting, EPS turnover has reach 23.2 bln.RUB in 2012 that is 42.1% higher in comparison with 2011. The share of mobile payments was 1.3 % in the total EPS turnover. We are expecting that the mobile payments market will reach 122 bln. RUB in 2018, and mobile payments share will be 2.8% in the EPS turnover.

 

(¹ Hereinafter 20XXA – Actual (actual data), 20XXE – Estimates ,20XXF – Forecast)

 

One of the important factors that facilitate the increase of purchase via mobile terminals is the opportunity to pay for goods and services directly from mobile device. The holders of mobile devices can pay for goods and services with the funds on their mobile account as well as the banking account.

 

According to J'son & Partners Consulting, mobile operators payments will be the largest segment of mobile payments (38%) and the mobile banking share will be 32%. We are expecting the increase of mobile banking share up to 29%.

 

Mobile operators’ payments

Russia is one of the few countries where a market of mobile operators’ payments existing. In USA and Europe operators do not provide such services. One of the main reasons is the post payment method in these regions. In Russia this services began to work widely mainly due to the special mobile apps that provide opportunity to pay for services and goods via mobile devices. This method of payment is very competitive, especially with such services as mobile banking and terminals that can influence the development dynamics of this service.

 

According to J’son & Partners Consulting, the volume of mobile operators payments in 2012 was 9.4 bln. RUB, the biggest share were payments for services of mobile connections (25%). In 2013 mobile operators payments turnover will increase for 40% and will be 13.1 bln. RUB.

 

 

J’son & Partners Consulting forecasts the turnover of payments more than 50.6 bln.RUB. in 2018. Compound annual growth rate (CAGR) in the period of 2013 – 2018 will be 31%.

 

Mobile banking

Mobile banking market is one of the fast growing and promising market all around the world and helps to increase the client service on the next level. And the most perspective direction is the mobile apps for phones. Russia will follow the world trend in the developing of mobile banking, although mobile operators’ payments and mobile banking services will develop a little bit faster.

 

The volume of payments executed via mobile banking was 8 bln. RUB in 2012, the largest share in payments via mobile banking were money transfers (31%). According to J'son & Partners Consulting the turnover of mobile banking payments will increase for 35% and will be 10.9 bln. RUB in 2013.

 

 

J’son & Partners Consulting estimates that at the end of 2018 the turnover of payments via mobile banking will be over 35 bln.RUB, share of money transfer in the total mobile banking payments will increase until 36.5%.

 

SMS-banking

SMS-banking – is a group of services providing the opportunity to manage the accounts and its state, to make payments for different services and goods. SMS-banking service is being provided with the help of messages «on demand» (Pull) and messages «on occasion» (Push).

 

A lot of banks provide only the informational sms-banking that help to get the information about accounts, its changes or state.

 

According to J’son & Partners Consulting, in Russia in 2013 50 mln.people will use SMS-banking and most of them will use only informational SMS-banking. Only less of 7% of them will pay for goods and services and 94% of them will make payments for mobile connection services. Payments for services (apart from mobile connection) are not very popular in Russia. In 2012 for broadband access and utility services paid only 2.5% and 2.7% of users accordingly. At the end of 2018 the number of SMS-banking users will increase and will be 85 mln.people and share of people who will pay for goods and services will increase in 1.5 times.

 

 

In 2012 SMS-banking payments market increased for 46% and was 6.8 bln.RUB in comparison with 2011, the turnover of payments for mobile connection services was 83%. According to J'son & Partners Consulting, the turnover of mobile operators payments will increase for 54.5% and will be 10.4 bln. RUB.

 

 

In 2012 the market volume of informational SMS-banking was twice more than the payments via SMS-banking. Nevertheless, according to J'son & Partners Consulting the turnover of payments via mobile banking at 2018 will be more than volume of informational SMS-banking market.

 

Main factors that influence positively on penetration of SMS-banking services in quantity and quality are:

 

      • Low penetration rate of smartphones;
      • population trust banks more rather than EPS;
      • largest russian banks developed the system of a distance services, including SMS-banking.

 

Content of the full version of the report: «Russian market of mobile operators payments, mobile and SMS-banking» (78 pages)

 

1. Resume
2. Introduction
3. Market of electronic payment systems (EPS)
       3.1. Short overview of EPS
       3.2. Volume and mobile payments and mobile banking market structure
4. Foreign market of mobile payments
       4.1. Mobile banking
              4.1.1. USA
              4.1.2. West Europe
       4.2. SMS-banking
              4.2.1. USA
              4.2.2. West Europe
       4.3. Mobile operators payments
5. Russian market of mobile banking, 2008A-2013E-2018F
       5.1. Dynamics of the number of users by market segments
       5.2. Dynamics of the payments turnovers by market segments
       5.3. Dynamics of the payments turnovers by key market players
       5.4. Dynamics of the number of transactions by key market players
       5.5. Dynamics of the average commission
6. Russian market of SMS-banking, 2008A-2013E-2018F
       6.1. Dynamics of the number of users
              6.1.1. Number of users making payments by market segments
              6.1.2. Number of users of informational SMS-banking
       6.2. Dynamics of the payments turnovers by market segments
       6.3. Dynamics of turnovers of informational SMS-banking
       6.4. Dynamics of number of transactions
       6.5. Dynamics of the average commission
       6.6. Dynamics of the number of informational SMS
       6.7. Dynamics of turnovers of informational SMS-banking and payments via SMS-banking by
              key market players
7. Russian market of mobile operators payments, 2008A-2013E-2018F
       7.1. Dynamics of the number of users by market segments
       7.2. Dynamics of the payments turnovers by market segments
       7.3. Dynamics of the number of transactions
       7.4. Dynamics of the average commission
8. Largest market players of the russian electronic payment systems
       8.1. Sberbank
       8.2. Alfa-bank
       8.3. VTB24
       8.4. Citibank
       8.5. Raiffeisenbank
       8.6. Payment system Factura
       8.7. Payment system HandyBank
       8.8. Russian Standard
       8.9. Fazprombank
       8.10. Rosbank
       8.11. Promsvyazbank
       8.12. Bank of Moscow
       8.13. Uralsib
       8.14. Transcreditbank
       8.15. MTS
       8.16. Beeline
       8.17. Megafon
9. Conclusion
10. Annex. List of companies.

 

List of Figures

Fig. 1. Turnover of payments market via EPS, bln. RUB, 2008А-2013E/F
Fig. 2. Turnover and mobile payments market structure, bln.RUB., 2008А-2018F
Fig. 3. Mobile payments market structure, %, 2008А, 2013E, 2018F
Fig. 4. Use of mobile access in the world, 2012
Fig. 5. The demand for mobile banking in the world, 2012
Fig. 6. Ways to execute transactions for banking clients in USA, 2012
Fig. 7. Number of mobile banking users in USA, 2012A-2017F, mln.
Fig. 8. Mobile banking users in Europe, July 2013, %
Fig. 9. Users who feel control of their money through mobile banking in Europe, July 2013,%
Fig. 10. Mobile banking users in Europe by age level, July 2013, %
Fig. 11. The share of smartphone users of all mobile users in the U.S., October 2011 – May 2013
Fig. 12. Number of mobile banking services users in Russia, mln. users, 2008А-2013E-2018F
Fig. 13. Annual average growth rates of number of users who executing payments via mobile banking by segments, 2008A-2018F
Fig. 14. Turnover and mobile banking market structure in Russia, bln.RUB, 2008А-2013E-2018F
Fig. 15. Annual average growth rates of payments via mobile banking by segments, 2008A-2018F
Fig. 16. Structure of payments via mobile banking, 2009А, 2012А, 2018F.
Fig. 17. Turnover of mobile banking payments market by market players, 2008А-2012A
Fig. 18. Number of transactions on the mobile banking market in Russia, mln., 2008А-2013E-2018F
Fig. 19. Number of transactions on the market of payments via mobile banking by market players, 2008А-2012A
Fig. 20. The average commission on the mobile banking market in Russia, 2008А-2013E-2018F
Fig. 21. Number of users paying for services and goods via SMS-banking, 2008А-2013E-2018F, thousand
Fig. 22. Annual average growth rates of number of users who executing payments via SMS-banking by segments, 2008A-2018F
Fig. 23. Number of informational SMS-banking users, 2008А-2013E-2018F, mln.
Fig. 24. Turnover of payments via SMS-banking market, 2008А-2013E-2018F, bln.RUB.
Fig. 25. Annual average growth rates of payments via SMS-banking by segments, 2008A-2018F
Fig. 26. Turnover of informational SMS-banking market, 2008А-2013E-2018F, bln.RUB.
Fig. 27. Number of transactions on payments via SMS-banking market, 2008А-2013E-2018F, mln.pcs.
Fig. 28. The average commission on the SMS-banking market in Russia, 2008А-2013E-2018F
Fig. 29. Number of informational SMS on SMS-banking makret, 2008А-2013E-2018F, mln.pcs.
Fig. 30. Turnover of informational SMS-banking market and payments via SMS banking by market players, 2008А-2012A
Fig. 31. Number of users practicing mobile operators payments in Russia, 2008А-2013E-2018F, mln.
Fig. 32. Annual average growth rates of number of mobile operators payments users by segments, 2008A-2018F
Fig. 33. Structure and turnover of mobile operators payments market in Russia, 2008А-2013E-2018F
Fig. 34. Annual average growth rates of mobile operators payments turnover by segments, 2008A-2018F
Fig. 35. The number of transactions on the market of mobile operators payments, 2008A-2013E-2018F, mn units.
Fig. 36. The average commission on the market of mobile operators payments in Russia, 2008А-2013E-2018F

 

List of Tables

Table 1. Turnover of electronic payments market in Russia, 2008A-2013E, bln.RUB.
Table 2. Turnover of electronic payments market in Russia 2008A-2013E/F, bln.RUB.
Table 3. The number of Internet users and broadband access subscribers.
Table 4. Population, million.
Table 5. Comparing the functionality of mobile banking systems, 2013.
Table 6. Availability of mobile banking applications on various mobile platforms, 2013.
Table 7. Number of mobile banking services users by market segments, thousand users, 2008A-2013E-2018F.
Table 8. Number of SMS-banking service users by market segments, thousand of users, 2008A-2013E-2018F.
Table 9. Turnover of SMS-banking market in Russia by segments, mln.RUB, 2008A-2013E-2018F.
Table 10. Number of mobile operators payments users by market segments, thousand of users, 2008A-2013E-2018F.
Table 11. Key indexes of Sberbank operation on SMS-banking and mobile banking market, 2008A-2012A.
Table 12. Key indexes of Alfa-bank operation on SMS-banking and mobile banking market, 2008A-2012A.
Table 13. Key indexes of VTB24 operation on internet-banking, SMS-banking and mobile banking market, 2008A-2012A.
Table 14. Key indexes of Citibank operation on mobile banking market, 2008A-2012A.
Table 15. Key indexes of Raiffeisen bank operation on inernet-banking, SMS-banking market, 2008A-2012A.
Table 16. Key indexes of payment system Factura operation on mobile banking market, 2008A-2012A.
Table 17. Key indexes of HandyBank operation on mobile banking market, 2008A-2012A.
Table 18. Key indexes of Russian Standard bank operation on SMS-banking and mobile banking market, 2008A-2012A.
Table 19. Key indexes of Gazprombank operation on SMS-banking and mobile banking market, 2008A-2012A.
Table 20. Key indexes of Rosbank operation on SMS-banking and mobile banking market, 2008A-2012A.
Table 21. Key indexes of Promsvyazbank operation on SMS-banking market, 2008A-2012A..
Table 22. Key indexes of Bank of Moscow operation on SMS-banking market, 2008A-2012A.
Table 23. Key indexes of Uralsib operation on SMS-banking market, 2008A-2012A.
Table 24. Key indexes of TransCreditBank operation on SMS-banking market, 2008A-2012A.
Table 25. Turnover of EPS market in Russia, 2008A-2013E, bln.RUB

 

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.

 

 

J’son & Partners Consulting presents the results of the research on the Russian mobile operators’ payments, mobile and SMS banking.