Russia is one of the most promising markets for the development of contactless payments

CONTENT

  • The contactless payment system will develop in Russia

  • Banks are not yet ready to use blockchain to develop payments

  • Bank card data will be tokenized

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This was announced by the President of Mastercard Europe Mark Barnett. The coronavirus epidemic has had a positive impact on the development of the contactless payment sector in the country, so experts expect a massive transition of Russians from cash to non-cash payments in the coming years.

Smartphones ousted credit cards

 

According to Mastercard research, less than half of Russians, namely 43%, are still willing to pay for goods and services in cash. At the same time, 22% of respondents stated that they regularly use credit and bank cards, and 36% of respondents use contactless payments using a smartphone. For example, in Poland, only 28% of respondents admitted that they use smartphones to pay. Thus, Russia ranked first in Eastern Europe in the popularity of contactless payments.

“If we look at Europe as a whole, then about 80% of transactions there are carried out using the contactless payment system. In Russia, this figure is still at 36%, and we consider this a good achievement, because 16% of Russians first tried contactless payments only during quarantine, “said Alexey Malinovsky, head of Mastercard in Russia..

However, the spread of contactless payments is uneven. There are areas where contactless payments are prevalent, and there are areas where users pay primarily in cash. For example, cash settlement is common in the field of household goods and appliances, in the furniture sector, the service sector (hairdressing, cinemas, restaurants, etc.). Mastercard studies have shown that even if customers are able to pay for services or goods in these industries contactlessly, they still prefer to pay in cash..

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Also, according to Malinovsky, in the next few years in Russia will develop a system of electronic payments for the B2B sector. For example, companies will be able to use bank cards, virtual cards for payments, as well as use the Mastercard MoneySend technology, which allows almost instant payments..

In addition, in the future, Mastercard intends to launch technologies designed to combat money laundering. The new technology will allow identifying and tracking suspicious payments in all instant settlement systems. The technology is already in use in the UK and is used by at least 40 banks.

What does this mean for cryptocurrencies

Russia is one of the most promising markets for the development of contactless payments

 

The development of the contactless payment system will also affect the cryptocurrency market. As Mark Barnett reported, Mastercard is currently experimenting with blockchain and exploring the possibility of using it for contactless payments. After all, the introduction of blockchain technologies will significantly speed up transactions, track the movement of funds, and also make payments more secure. However, for now Mastercard is not ready to use the blockchain in its work..

But the tokenization technology is likely to develop rapidly in the very near future. For example, banks today store card data on their servers and virtual storages. However, this is always a data security risk. Replacing these cards with tokens is a completely different level of security and comfort, primarily for the client himself. Even if you lose your card, stealing money won’t be easy. Tokens containing bank card data will receive an instant message about the change of information, and the card will be blocked as soon as possible.

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Also, tokenization technology will improve the comfort of online shopping..

“Today, Amazon has saved my card details, but one day it will be just a token. As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More. I will be able to open the mobile application and see all the stores that have my tokens, as well as enable or disable them. If I want to use a token, I can turn it on, as I see and control the whole picture. Therefore, tokenization The term tokenization has been around for quite some time. In the broadest sense, a “token” is a kind of unit designed to represent a certain value within … More is definitely an important technology, “said Mark Barnett.

By the way, earlier BeInCrypto reported that central banks of many countries want to tokenize CBDC Paper notes and coins may be a thing of the past due to a new financial instrument – central bank digital currencies (CBDC). As of … More. More than half of the surveyed central banks (58%) would like to have CBDC in the form of tokens stored in digital wallets, according to published results..

Despite the fact that technology is developing very quickly, you should not immediately expect a complete rejection of the use of bank cards. According to Mastercard representatives, card payments will be present in our life for a very long time..

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Russia is one of the most promising markets for the development of contactless payments
Russia is one of the most promising markets for the development of contactless payments

What does a cashless future mean? | The Economist

Russia is one of the most promising markets for the development of contactless payments