Yandex Pay will compete with Apple Pay and other cashless payment services

Yandex Pay will compete with Apple Pay and other cashless payment services

Yandex is preparing to present its own cashless payment service, which will be called Yandex Pay. Mentions of it, including the terms of use, were found in published company documents. As in other similar services, users will be able to save their bank card details in Yandex Pay and make contactless payments. It is reported that the service will also operate on Yandex’s web pages.

Representatives of the company have not yet commented on the rumors about the creation of Yandex Pay, evasively answering that now users of the company’s services can link a bank card to their account in order to pay for orders from various Yandex services. However, he said that the company is developing new technologies and services designed to improve the convenience and security of payments, which Yandex will discuss later.

At the moment, the payment services market in Russia is quite developed. There are 66 payment applications from different companies in the country, but none of them belongs to legal entities belonging to the Yandex group. There are no financial services among the company’s numerous services, but the company has long been planning to start creating and developing them. Yandex had already made attempts to advance in the financial sphere, but the Yandex.Money payment system quickly came under the control of Sberbank. Now it is called “YuMoney” and has no relation to “Yandex”.

Nevertheless, the termination of the partnership with Sber removed from Yandex all restrictions on the development of payment services outside the framework of this cooperation. In July last year, Yandex.Plus got the opportunity to manage money through VTB Capital Investments, after which the company tried to merge with Tinkoff Bank, but this deal failed in October. Then Yandex decided that it was necessary to develop its financial business independently. The company has filed applications for the registration of the trademarks “YaBank”, “YaTrade”, and “YaValyuta”. Tigran Khudaverdyan, Managing Director of Yandex Group of Companies, said that the appearance of plastic cards from the company can be expected until the end of 2021.

Recall that Apple Pay and Samsung Pay were the first payment services on the Russian market in the fall of 2016. A year later, Android Pay joined them. According to statistics, Apple Pay is the most popular non-cash payment service in Russia. A representative of one of the largest Russian banks says that the creation of its own payment service is, first of all, a marketing move designed to attract a user to the company’s ecosystem. However, he notes that it will be difficult for a new player in the market to attract a significant share of users, since a stable consumption model has already been formed on the Russian market based on existing services.

Nevertheless, the market for cashless payment services is quite extensive and growing rapidly. According to a representative of Raiffeisenbank, in the ten months of last year, the average check on transactions made using services such as Apple Pay grew by 14 percent. This suggests that users are less likely to use physical cards, preferring to pay for purchases with a smartphone. Along with this, sales of smartphones equipped with an NFC module, as well as alternative devices such as fitness trackers with NFC chips, are also growing. In addition, in 2019 Samsung recognized Russia as the leader in the growth rate of contactless payments.

It is expected that in the near future there will be new details regarding the payment service from Yandex.

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