Tuesday, 1 October 2019

Russia Remittance and Bill Payments Market Outlook to 2023

The report titled “Russia Remittance and Bill Payments Market Outlook to 2023 (Second Edition) – By Domestic Remittance Banking & Non Banking Channels; International Remittance Flow Corridors and Channel; and Bill Payment Segmentprovides a comprehensive analysis of both international and domestic remittance and bill payments market of Russia. The report covers market size, market segmentation on inbound and outbound remi-ttance, resident and non-resident, major flow corridors, bank & non-bank, mode of remittance for international remittance. For domestic remittance, the report covers market size, market segmentation on remittance channel and major flow corridors. It also includes the bill payments market covering the market size and segmentation by mode of payments, type of platform and channel of payments. The report also covers government regulations in the market, market share and company profiles of major banking and non-banking channels in Russia remittance and bill payments market. The report provides detailed overview on future outlook & projections with analyst recommendations for the industry. The report provides detailed insights on the existing and future trends, issues and challenges prevalent in the industry and anticipated growth in the future depending upon changing industry dynamics in forecasted period.
Russia is well-known as a leading cosmopolitan hub in the world with a wide range of investment and job opportunities, due to which it has been a major attraction for job seekers in Commonwealth of Independent States (CIS) and the non-independent States (non-CIS) countries. Russian population majorly constitute of expatriates. The Russian remittance industry is thus, dominated by the outflow of the remittances. During the period 2013-2018, the market for remittance has increased on account of increasing migrants to Russia, increase in internet penetration and increase in the use of digital methods for wire transfers including account to account, account to card and card to card transfers.
Russia International Remittance Market Segmentation
By Inbound & Outbound: The Russia international remittance market registered a majority of contribution from outbound remittances segment within Russia in the year 2018. Stable progress in diversity and coverage of global remittance networks has enabled more CIS and Non-CIS workers to remit money at a reasonable cost of services which include automated teller machines, web-based services, and reusable / reloadable cash cards.
By Countries: Switzerland accounted for majority of the total remittances sent and received in Russia during 2018 in Non-CIS countries. In CIS countries, Kazakhstan was the highest sender of money in Russia in 2018. Major decrease in inbound and outbound remittance was seen Ukraine in 2018 which was among the highest flow corridor before the ban during 2016.
Competitive Landscape in International Remittance Market
Russian international remittance market is fragmented with the presence of small, medium and large companies. The large players such as Sberbank, VTB Bank, Koronapay, Western Union and others are dominating the industry in terms of transaction volume during the year 2018. The Russia-Ukraine is the second largest migration corridor in the world and the Ukraine-Russia is the fourth largest corridor in the world. These corridors facilitate large scale migration and rise in competition among the players in Russia in terms of offering services for remittance flows.
Russia Domestic Remittance and Bill Payments Market
Market Overview: Domestic remittance market of Russia has witnessed tremendous growth in the past few years. Rising internal migrant population both intra-regional and inter-regional owing to better job opportunities has triggered the size of the industry. The internal immigrant population has increased slightly from 2013-2018. Also, in the recent times the Russian economy has witnessed rapid industrialization and growth in GDP which resulted to an increase in the country’s standard of living at tremendous rate owing to which the public spending on utilities, entertainment and others has increased. This has depicted a positive impact on the bill payments market. The bill payments market in Russia includes the payments made for all the utilities consumed in the country by both expatriates and citizens in the country. The market grew at positive double digit CAGR during 2013-2018.
Domestic Remittance Market Segmentation
Flow Corridors (Major Sending and Receiving Region): Internal Migration within Russia in search of Jobs accounted for major share of the total domestic remittances. Domestic remittances were observed to be transferred to districts of Central Federal Districts with highest migration in 2018 followed by Northwestern Federal District and Volga Federal Districts with highest migrations.
Mode of Payment (Offline and Online): Majority of bill payments in Russia were made offline through banking channel facilities such as ATMs, bank deposits, POS and others, whereas increasing usage of online mode have been observed in major metro cities with maximum utilization of online mode such as M-wallets, E-money and card transfers.
Competitive Landscape in Domestic Remittance and Bill Payments Market
The market is dominated by the banking channels with high penetration of banking services and majority of population hold bank accounts and restrictions on cash transfers from government. The enormous potential of domestic remittances has also engrossed international players such as the Western Union, Money Gram and others into the market. Conversely, the Russian-based service providers such as banks, regional and national money transfer operators including Sberbank, Koronapay, Russian Post and others have a noteworthy presence in the domestic market and have provided stiff competition to international players. Sberbank was the largest bank in the Russian domestic remittance market in 2018 followed by other major players in domestic remittance market in terms of transaction volume. Whereas, competition within the bill payments market is highly fragmented with presence of many third party platforms and billers desk in the country providing different types of bill payment services.
Future Potential of Domestic Remittance and Bill Payments Market
The rising infrastructural & developmental activities undertaken by the government of Russia and rising business sector in the country are anticipated to foster growth in the country’s domestic remittance market. Also, rising number of households due to internal migrations is expected to increase the usage of groceries, fuel, electricity, water, broadband, phones and other utilities in the major cities of the country. Moreover, increasing per capita household disposable income, rising standard of living, increasing salaries, emerging bill payment companies, expansion of bill payment services and others will surge the size of bill payment industry of Russia in the near future.
Key Segments Covered:-
International Remittance Market
By Flow Type
Inbound
Outbound
By Individuals
Residents
Non-Residents
By Major Flow Corridors
CIS (Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Ukraine and Others)
Non-CIS (Switzerland, Latvia, USA, UK, Germany and Others)
By Remittance Channels
Banks
Non Banks
By Payout Mode
Cash
Non-Cash/Electronic Transfer
By Channels
Bank
Non-Banks
Domestic Remittance Market
By Remittance Channels
Banks
Non Banks
By Major Flow Corridors
Central Russian Federal District
Volga Federal District
North-western Federal District
Bill Payments Market
By Mode of Payment
Offline
Online
Method of Payment
Cash
Credit / Debit Cards / E-Wallets
Direct Bank Debits and Transfers
Key Target Audience:-
Money Transfer Operators
Banks
Pawnshops
Bill Payment Companies
M-Wallets
Mobile Money Companies
Central Bank
Investors and PE Firms
Convenience Stores
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2024
Companies Covered:-
Major Bank Channel in Russia:-
Sberbank
VTB Bank
Gazprombank
Alfa Bank
Major Non-Banking Channel in Russia:-
Russian Post
Koronapay
Unistream
CONTACT (QIWI)
Money Gram
Western Union
Key Topics Covered in the Report:-
Russia Domestic Remittance Market Size (2013-2018)
Russia Bill Payments Market Size (2013-2018)
Russia International Remittance Market Size (2013-2018)
Russia Remittance and Bill Payments Market Overview
Russia Remittance and Bill Payments Market Ecosystem
Russia Remittance and Bill payments Market Segmentation (2013-2018)
Trends and developments
Comparative Landscape including Strength and Weakness of the major Remittance and Bill Payments players
Company Profiles of Major Players
Future Outlook and Projections of Russia Domestic Remittance Market (2018-2023E)
Future Outlook and Projections of Russia Bill Payments Markets (2018-2023E)
Future Outlook and Projections of Russia International Remittance Markets (2018-2023E)
Analyst Recommendation
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