Terminal for cashless payment
Photo: Dmitry Serebryakov / TASS
The necessity of connecting commercial banks and increase in the share of cashless payments in small and medium business will give mobile operators a new market of tens of billions of rubles, estimated by experts
In the coming years in Russia in connection with the change in legislation will increase the number of cashless payment terminals used by the enterprises of small and average business, and this will create for banks, terminal manufacturers and mobile operators “tangible new market”, the study said the consulting company AC&M (have RBC). “Taking into account that Russia already has approximately 3.5 million cash registers and their number is constantly growing, the market potential for companies providing solutions for accepting non-cash payments, in the coming years will be measured in tens of billions of rubles”, — analysts say.
Evaluation of AC&M, at the end of 2016 for vending machines, ATMs and POS terminals to receive payments accounted for about 14% of the total volume used by the M2M devices (machine to machine, communication between machines) SIM cards, or more than 1.5 million units. About 100 thousand SIM cards were used in retail outlets, but formally did not belong to M2M, because it was connected to a standard, not a special tariff plans. The leaders in the number of M2M SIM cards for November 2016 was MTS (43% of the total), MegaFon (35%) and VimpelCom (19%). Only at the end of December last year, the country registered 255,6 million active SIM cards. The number of subscribers — physical persons in recent times almost not growing, because the potential increase in customer base is almost exhausted.
“We estimate the growth in the next two years in 2-2,5 times it is for payment terminals, as catalysts in this segment simultaneously act as the legislative aspect, and the proliferation of cashless means of payment among the population”, — told RBC managing partner of AC&M Mikhail Alekseev.
From 1 February 2017, according to the amendments to the law “On applying cash registers”, all new outlets must implement the cash register of a new model, able to send online all tax information for each transaction to the Federal tax service (FTS), which requires a fiscal drive and Internet access. The transmission of information passes through the accredited operators on fiscal data. From 1 July 2017 to such offices need to move existing points of sales, and from July 1, 2018 — all who were not previously obliged to apply kontrolno-cash technics, for example, individual entrepreneurs providing services to the public or traded with the use of vending machines.
According to the Bank of Russia, at the beginning of 2017, the country had 1.97 million electronic terminals, allowing to carry out cashless transactions using payment cards. In 2014 their number increased by 43%. At the beginning of year the number of online banks amounted to 350 thousand units, reported at the end of April the Deputy head FNS Daniel Egorov.
The card on the counter
As part of his research in early 2017 AC&M employees surveyed 650 randomly selected outlets of small formats in Moscow, Rostov-on-don, Novosibirsk, Nizhny Novgorod, Murmansk and Tula regions. The researchers visited markets, a small brick and mortar stores, service providers (hairdressers, beauty salons, private dental clinics, etc.). In the survey of AC&M has come to the conclusion that the proportion of points using the system of cashless payment in 2017, reaching almost 10%. This is the first such study, so changes are unknown. Plastic cards began to take on food and household markets do not less than 8% of trading places, and in some regions up to 20%. Among the points of public catering (cafes, bars, restaurants) the figure was 36%.
The majority of sales in the mass segment, unorganized trade (markets and small stores format “at home”) terminals cashless payment came less than a year ago. In catering the bulk terminals there was one three years ago (this answer was given by 65% of respondents). Almost all respondents private sellers at markets and small shops used wireless terminals to receive payments. Among the points of public catering the share of wireless terminals was approximately 25%, but in the AC&M expects that in three to five years of wireless terminals becomes larger than wired, “as is the case in more advanced markets.”
On average, cashless payments accounted for 10-25% of the turnover point, equipped with a terminal. However, AC&M note that survey vendors are not always willing to discuss absolute numbers of turnover. At the same time, some respondents said that when the market is not working ATM, payment cards grows 5-6 times and account for more than half the day proceeds.
In the study by AC&M it is noted that the increase in the number of terminals is constrained not by the Commission for acquiring. “Many still doubt that the cost of acquisition and maintenance of the terminal will pay off quickly from the fact of cash flow, which customers are willing to exercise in a cashless form,” the study says. The contents of the wireless terminal to accept payments using credit cards may cost several tens of thousands of rubles per year, which is comparable to a quarter or even a third monthly turnover of small retail space in the organised market are quoted in it.
With this agrees the Chairman of the Board SDM-Bank Maxim Solntsev. According to him, banks are constantly working to ensure that customers of small and medium business switched to cashless payments, offer solutions for network card acquiring, Internet acquiring, but often the client this is not necessary. The desire of small and medium businesses to go cashless payments completely depends on the type of business and number of clients or employees who are willing to pay or receive money in the form of cash, says the sun. “If it is the construction sector, for example, there is, obviously, more cash flow,” he notes. The transition to electronic payments easier agree the companies with revenue greater than 1 million rubles. per month, adds the banker.
The chance for operators
A quarter of respondents AC&M note that an extensive network of offices of the mobile operators makes them attractive counterparties for small businesses when it comes to merchant acquiring. The company reminds that MTS and MegaFon already provides banking services, all cellular “big three”, according to AC&M, is in the process of obtaining licenses operator’s fiscal data. “In our opinion, market leaders could offer consumers a box solution — device, telecommunications, banking, service, interaction via the offices of retail sales. Now this market is very fragmented. Operators could cover a very significant share of demand due to the integrated, easy to implement and convenient product for small business and individual entrepreneurs”, — says Mikhail Alekseev.
Now the average revenue of the SIM card in the payment terminal is 60-80 rubles. “However, from July 2017 ARPU (average score per subscriber) SIM cards to be used in cash registers for transactions and acquiring, will grow and will be around 100-120 rubles per month”, — predicts Mikhail Alekseev. The fact that the new requirements for cash registers will force the owners to pay not only base rates, but some options. In particular, from time to time you will need to update software products installed on machines that do not fit in the basic tariff for M2M, the expert explains. At the same time, he noted that ARPU SIM-card in the payment terminal is less than the subscribers-physical persons. Operators do not disclose ARPU of these subscribers. The overall rate of SIM-cards of both types, for example the “VimpelCom”, at the end of 2016 amounted to RUB 307
MTS representative Dmitry Solodovnikov confirmed that the segment of providing comprehensive services for accepting payments, acquiring, operator’s fiscal data, etc. “really important” for the company. “We are actively developing this direction, together with group companies, MTS-Bank and NVision (IT integrator)”, — said Solodovnikov, not becoming to discuss the details. According to the representative of “MegaFon” Yulia liovochkina Dorogino, the company has not received the operator’s license fiscal data, but has enlisted the support of partner companies with a similar status OFD.ru. “A comprehensive proposal “Megaphone” includes services OFD.ru friendly interface remote control of SIM cards and special rates for the banks,” she said. However, the question whether the company’s segment wireless payment terminals, the representative of “MegaFon” declined to comment on.
Executive Vice President, corporate business development of “VimpelCom” Artashes Sivkov said that the operator plans to complement the portfolio of services for small businesses, including the introduction of online cash registers. According to him, the license operator’s fiscal data will enable the company to provide comprehensive services to owners of small businesses.