How money transfer systems are changing the business model to survive in a crisis
According to the calculations of the Central Bank of the Russian Federation, the volume of transfers of individuals from Russia to the CIS countries for the five months of 2015 decreased compared to the same period by half - to $ 3.326 billion.
There has not been such a strong fall in the remittance market since the crisis of 2009. Then the market declined by 27.3% yoy. Representatives of “Unistream” estimated the decline in the volume of transfers through the system in the key direction of the Russian Federation-CIS in January-May at 29% compared to the same period last year. Transfers to foreign countries decreased by 9%. Contact representatives also note a general reduction in the number of customers - by 10%, in the corridor of the Russian Federation-CIS - by 11%.
Back in 2013-2014, the remittance market began to lose players. The Migom system left the market , because of problems with liquidity, the Contact system changed ownership. Some owners decided to exit the money transfer business. The share of Aurora Russia Fund (26%) in the Unistream company is put up for sale. The fund plans to get rid of the package within a year. Previously, the entire system was almost bought out by Qiwi , but against the background of the devaluation of the ruble at the end of last year, the parties did not agree on a price.
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Against the background of rising unemployment, the need for transfers has decreased, says Blizko , head of the Blizko system , Andrei Laikov. The main users of remittances in Russia labor migrants sharply reduced their activity. The fact is that since January 1, citizens of the CIS (with the exception of the countries of the Customs Union) are obliged to enter the Russian Federation only on foreign passports, confirm knowledge of the Russian language, history and Russian laws, as well as issue a labor patent and constantly pay for it.
The main reason for the decline in remittances is the deterioration of the economic situation and the rise in the dollar, the most popular currency among migrants. In countries where rubles can be transferred (Kyrgyzstan, Armenia, Tajikistan and Kazakhstan), the dollar is much more stable than the ruble. Therefore, the population is often simply unprofitable.
To keep afloat, transfer systems began to expand networks and increase the number of partners: Golden Crown , for example, connected 53 banks from the beginning of the year, Unistream signed an agreement with 33 partners. Many large players, such as Contact and Leader , have reduced tariffs for certain services.
Companies began to explore other areas of translation. The Golden Crown recently entered the UK, Latvia and Israel and expanded its presence in Turkey. The Leader has entered the markets of South Africa, Congo, Albania, Kenya, Ghana and Pakistan. Contact expanded its presence in Bangladesh, India, Sri Lanka, Pakistan, Malaysia, Indonesia, Japan and the USA, and in April launched remittances from Polish post offices. Thus, transfers to foreign countries ensured the market growth in rubles by 7.3% - up to 37.8 billion rubles.
In the Golden Crown, revenues in this area increased by 6% in proportion to turnover. Revenues of “Unistream” increased compared to January-May 2014 by more than 20%. Contact revenue from remittances increased by 11%.
Some companies began to diversify their business amid the falling market of classic cash transfers. Unistream now plans to develop typical banking services - cash management services for legal entities, shopping and Internet acquiring, collection, and so on. In addition, the system intends to focus its attention on the payment business.
I was interested in the payment business and Golden Crown. In January-July 2015, its turnover in the payments segment amounted to 104.7 billion rubles (17% more than a year ago), or almost 40% of the volume of classical cash transfers. The company "Leader" ratio of turnover in the segment of remittances and payments reached equal shares - approximately 50% to 50%. The PayStore payment application and Leomoney e-wallet allow you to pay for cellular communication, air tickets, public services and much more.
Pochta Rossii has implemented the possibility of transfers via the Internet from bank cards, from mobile accounts and via terminals with money crediting both to bank cards, and with issuance in branches or even home delivery.
In addition, many players combine their efforts. Recently, the Blizko system launched a joint service with Russian Post, gaining access to the sales network of translations within Russia, and Russian Post, in turn, gained access to the CIS market. On August 12, CNews reported that Unistream Bank joined the Association of Regional Banks of Russia.
“We hope that in 2016 the market will grow by 10% compared to 2015,” Andrei Laikov told Kommersant.
There has not been such a strong fall in the remittance market since the crisis of 2009. Then the market declined by 27.3% yoy. Representatives of “Unistream” estimated the decline in the volume of transfers through the system in the key direction of the Russian Federation-CIS in January-May at 29% compared to the same period last year. Transfers to foreign countries decreased by 9%. Contact representatives also note a general reduction in the number of customers - by 10%, in the corridor of the Russian Federation-CIS - by 11%.
Back in 2013-2014, the remittance market began to lose players. The Migom system left the market , because of problems with liquidity, the Contact system changed ownership. Some owners decided to exit the money transfer business. The share of Aurora Russia Fund (26%) in the Unistream company is put up for sale. The fund plans to get rid of the package within a year. Previously, the entire system was almost bought out by Qiwi , but against the background of the devaluation of the ruble at the end of last year, the parties did not agree on a price.
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Who is guilty
Against the background of rising unemployment, the need for transfers has decreased, says Blizko , head of the Blizko system , Andrei Laikov. The main users of remittances in Russia labor migrants sharply reduced their activity. The fact is that since January 1, citizens of the CIS (with the exception of the countries of the Customs Union) are obliged to enter the Russian Federation only on foreign passports, confirm knowledge of the Russian language, history and Russian laws, as well as issue a labor patent and constantly pay for it.
The main reason for the decline in remittances is the deterioration of the economic situation and the rise in the dollar, the most popular currency among migrants. In countries where rubles can be transferred (Kyrgyzstan, Armenia, Tajikistan and Kazakhstan), the dollar is much more stable than the ruble. Therefore, the population is often simply unprofitable.
What to do
To keep afloat, transfer systems began to expand networks and increase the number of partners: Golden Crown , for example, connected 53 banks from the beginning of the year, Unistream signed an agreement with 33 partners. Many large players, such as Contact and Leader , have reduced tariffs for certain services.
Companies began to explore other areas of translation. The Golden Crown recently entered the UK, Latvia and Israel and expanded its presence in Turkey. The Leader has entered the markets of South Africa, Congo, Albania, Kenya, Ghana and Pakistan. Contact expanded its presence in Bangladesh, India, Sri Lanka, Pakistan, Malaysia, Indonesia, Japan and the USA, and in April launched remittances from Polish post offices. Thus, transfers to foreign countries ensured the market growth in rubles by 7.3% - up to 37.8 billion rubles.
In the Golden Crown, revenues in this area increased by 6% in proportion to turnover. Revenues of “Unistream” increased compared to January-May 2014 by more than 20%. Contact revenue from remittances increased by 11%.
Some companies began to diversify their business amid the falling market of classic cash transfers. Unistream now plans to develop typical banking services - cash management services for legal entities, shopping and Internet acquiring, collection, and so on. In addition, the system intends to focus its attention on the payment business.
I was interested in the payment business and Golden Crown. In January-July 2015, its turnover in the payments segment amounted to 104.7 billion rubles (17% more than a year ago), or almost 40% of the volume of classical cash transfers. The company "Leader" ratio of turnover in the segment of remittances and payments reached equal shares - approximately 50% to 50%. The PayStore payment application and Leomoney e-wallet allow you to pay for cellular communication, air tickets, public services and much more.
Pochta Rossii has implemented the possibility of transfers via the Internet from bank cards, from mobile accounts and via terminals with money crediting both to bank cards, and with issuance in branches or even home delivery.
In addition, many players combine their efforts. Recently, the Blizko system launched a joint service with Russian Post, gaining access to the sales network of translations within Russia, and Russian Post, in turn, gained access to the CIS market. On August 12, CNews reported that Unistream Bank joined the Association of Regional Banks of Russia.
“We hope that in 2016 the market will grow by 10% compared to 2015,” Andrei Laikov told Kommersant.
Source: https://habr.com/ru/post/293658/
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