Globalcollect Russia Country Factsheet

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Russia has more internet users than Germany
International and domestic investors are grabbing big opportunities in Russia as internet penetration reaches more than a third of the country. For the first time Russia has overtaken Germany as the market with the largest online audience in Europe. Russia presents a unique challenge to an international company. In addition to adapting to a different language and culture, there are profound differences in business and payment processes.

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Globalcollect Russia Country Factsheet

  1. 1. RussiaRussia has more internet users than Germany General statistics 2011International and domestic investors are grabbing big Population 140,000,000opportunities in Russia as internet penetration reaches morethan a third of the country. For the first time Russia has Currency Ruble (RUB)overtaken Germany as the market with the largest online Major language Russianaudience in Europe. Russia presents a unique challenge to an Capital Moscowinternational company. In addition to adapting to a differentlanguage and culture, there are profound differences in GDP per capita $15,900business and payment processes. Internet usage 2010/2011 Internet penetration 43%Fast Facts Internet population 60,200,000 Broadband growing by about 3% a month Broadband penetration 60% – 80% by 2015 Central Region (including Moscow) represents 31% of Russia’s online population Value E-commerce market $21,7 billion There will be 185.9 million mobile phone subscriptions in the country by the end of 2011 Online spending in Russia accounts for less than 1% of the total retail marketE-commerce DataInternet usage top five countries Most demanded goods by Russian online Internet usage September 2011 (million) 60 Russia 40 20 Germany 0 France UK ItalyMost demanded goods online by sales Payment product by volume
  2. 2. Quick OverviewRussian online audience relatively youngRussia’s online audience is relatively young, many stilluse the Internet primarily for communication, while Internet Audienceentertainment and business, the main growth drivers in 6%Western countries, come in second. 13% 15-24Heavy social media users 31% 25-34Russian Internet users are among the heaviest users of 20% 35-44social networks, boasting one of the highest usage ratesand spending the longest time there. The main Russian 45-55websites are the social network Vkontakte, search engine 55+Yandex, and the webmail portal Mail.ru. 30%E-commerce dominated by domestic companiesThe Russian e‐commerce market is dominated by domesticcompanies. In terms of overall volume, the greatest shareof e‐commerce sales are in the travel and telecomsectors, where all of the players have offline presenceswhich provide assurance to consumers that they will haverecourse to a “real” company in the event of a problem. The most successful Russian internet shopsPositive e-commerce perspectivesCurrently almost 70% of Internet users make at least 1 online 1. Unkonos.ru Foodstuffpurchase each 6 months; 25% regularly spend $315 - $940 2. Ozon.ru Hypermarketon online purchases, and around 30% spend $16 - $95 while 3. Kipivip.ru Clothes, Footweardoing online shopping. Future trends suggest nothing but 4. Holodilnik.ru Household Appl. & Electr.the growth of their number. 5. Pleer.ru Household Appl. & Electr. 6. Komus.ru Office Supplies 7. Mvideo.ru Household Apll. & Electr.Explosive mobile internet increase 8. Svyaznoy.ru Mobile PhonesBecause household broadband penetration remains flat, 9. Quelle.ru Clothes, Footwearthey attributed the increase to mobile internet usage. 10. Otto.ru Clothes, FootwearThe number of mobile internet users in Russia will grow to43 million people by the end of 2011 from 39 millionregistered at the end of 2010.Online Payment segment dominated by eWalletsRussians still believe in cash. Many of them do not trustbanks, while credit cards are rare. The online paymentsegment is dominated by eWallets. They consist of large The number of mobilenetworks of cash collecting POS terminals, agents, and internet subscribersfranchises to execute payments and store money for later (million)use. Typically, eWallets can be charged via a variety ofmethods such as cash, bank cards, vouchers, virtual 60currencies, and more. 40Regulation makes cross-border money transfers difficult 20Russian legislation on online payments is completelydifferent from the Western model. Payment service 0providers are confronted with regular changes in legislationand what may be common practice today may be 2009 2010 2011 2012forbidden tomorrow, making it a challenge to do business inRussia.
  3. 3. Payment Product Spotlight Global Collect’s Portfolio in Russia International Cards GlobalCollect supports American Express, MasterCard, Visa & Amex Bank transfer GlobalCollect supports Local bank transfers Check GlobalCollect supports check processing e-Wallets GlobalCollect supports WebMoney & Yandex Mobile The support for mobile is on the future’s list of GlobalCollect Prepaid GlobalCollect supports UkashRussian payment products spotlight Yandex Money is one of the most popular payment service in Russia that allows users to buy virtual and real goods and services online. Transactions can be initiated either in the browser or in “Internet.Purse” application. WebMoney is a multifunctional payment tool that provides secure and immediate transactions online. Originally targeted mainly at Russian customers, which now has over 16 million registered accounts all over the world. All transactions in the system are immediate and nonrefundable. PAYMENT TERMINALS are widespread throughout Russia (270,000+ in total). These ATM-like terminals are used to pay cash for a variety of goods (e.g. subscription bills, top up eWallets or prepaid phones). The top 3 players are QIWI, e-Port and Cyberplat.A tailored solutionOutsourcing currency conversion services,combined with a remittance currency set-uptailored to your needs, allows merchants tofocus on their core business activities andrealize organizational savings.About GlobalCollectGlobalCollect is the worlds premier PaymentService Provider of local e-payment solutionsfor international Customer Not-Present (CNP)channels. A pioneer of global paymentprocessing with more than 15 years ofexperience as a full service provider, we havea proven track record in helping our merchantsrealize their global ambitions and expand theireCommerce activities across the world.Sources:Suntsofa Daria – Realities and perspectives of e-commerce in Russia, March 2011Innopay Study - Online payments 2011ComScore - Overview of BRIC Internet markets, October 2011Interstice - Russian E‐Commerce Market - Behind the Numbers, March 2011www.emarketer.com - High Mobile Usage in Russia, but Lagging Technology, November 2011 V3.1

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