Photo: Alexander Ryumin/TASS
The regulator is dissatisfied with rates of preparation of banks for acceptance of payment cards “the World” in ATM networks. To complete the process it requires by March 1. For banks such acceleration will cause additional expense
As it became known to RBC, the Bank of Russia has dispatched to banks — participants of the national payment system “the World” a letter requesting to expedite the preparation of ATM networks to receive cards of “Peace.” As stated in the letter (available to RBC), notwithstanding the Central Bank and the NPCs (the operator of the payment system “World”) work with banks, number of banks activities to ensure the readiness of their ATMs was never completed. They need to complete before March 1, stated in the letter, and information about the work done to provide the regulator.
According to bankers, the letter sent out in January, obtained by different banks on different dates. In a press-service of the Central Bank RBK reported the following: “All the banks — participants of the payment system ensured almost full readiness of its ATM network to accept cards. Banks who are not participants of the payment system “World”, whose number is insignificant and their share of devices in cash dispensers is minimal, currently completing donaustrasse their devices and have to finish the work in the first quarter of 2017″. From assessing the scale of the problem the Central Bank refrained.
A new term
The period within which banks should finalize the ATMs to accept the cards, “Peace”, the Central Bank called for the first time. Why final date established 1 March, the Bank of Russia has not explained. The law on “National payment system” and its amendments, the timing for the preparation of the ATMs are not spelled out.
The controller asks the participants of the payment system to hurry in the run-up scheduled for 2017 mass card issuance, “the World”, suggest the respondents RBC top-managers of several banks from top-10 by assets. They believe that the rush of the Central Bank stems from the fact that the regulator therefore wants to give the holders of “the World” the opportunity to get used to the new maps and maintain their systems, including ATMs.
The Bank also plans by year-end transfer to the card “the World” at least all public sector employees and considers 2017 as the most important from the point of view of increasing the number of cards, said at the end of last year the head of the Bank of Russia Elvira Nabiullina. The regulator expects that this year, banks emit about 20 million cards “the World” vs 1.76 million in 2016.
From the response of the NPCs to a request to RBC, too, it follows that the process of preparation of ATMs completed to the end. According to the Central Bank by 1 December 2016, there were over 600 banks. As follows from the data on the website of the NPCs, to the national system of payment cards connected to 181 banks. Of them fully adapted their devices to receive and service card “the World” “over 100 of the largest Federal and regional banks,” reads the response of the press service of the organization on the question RBC.
Development on demand
The Bank of Russia did not specify who it was addressed to hasten the completion of the works. RBC interviewed ten banks among the 50 largest credit card issuers (according to Frank Research Group), connected to the NPCs, to the preparedness of their ATM networks to receive cards of “the World”, — Sberbank, VTB24, VTB Bank, Alfa Bank, Citi Bank, Rosgosstrakh Bank, UniCredit Bank, SMP Bank, OTKRITIE Bank and Binbank.
Sberbank, which is the country’s largest network of ATMs and self-service facilities — more than 90 thousand, probably, could be among the recipients of the letter. In a press-service of the Bank reported that work on the modernization of ATMs has not yet been completed, and noted that the time to prepare the entire network in the first quarter. The remaining nine interviewed by RBC banks claim that their ATM network is ready to receive the card “the World”.
What is the map “World”
National payment card “the World” is issued in the framework of the national payment system “World”. It was created in the summer of 2014 to protect the Russian card market from Western sanctions. The reason for the development of the national payment system was the termination of service cards of several Russian banks, placed under sanctions, international payment systems Visa and MasterCard. The first card “the World” was issued by banks — participants of the pilot project in December 2015.
Emission without enthusiasm
Unprepared for operations on the cards “the World” is not only the ATM network. As follows from the data on the website of the national payment system, of the 181 Bank party NPCs only 49 has produced the card “the World” — the rest is only ready to issue, and at least 90 commenced the erection of the acquiring network. Among the banks, which issue, according to the NBTS, “Russian standard”, Moscow credit Bank, Alfa-Bank and UniCredit Bank.
Alfa-Bank plans to start issuing the cards “the World” no later than the second quarter of this year, RBC reported in the press service of the Bank. How many cards will be issued, the Bank did not disclose. ICD intends to start issuing domestic cards as of April 1 UniCredit Bank — “for several months”, told RBC in the press service of banks. As Alfa-Bank, they also did not specify how many cards you plan to produce. Declined to comment on plans to release the cards “the World” in 2017, the Bank “Russian standard”.
Plans banks are already issuing cards, “Peace” and agreed to disclose to RBC benchmarks for emissions for 2017, has not yet appear to correspond with the intentions of the Central Bank for 2017, dependent on the issue in 2017 and 20 million cards “the World” in the whole banking sector. So, VTB24, in the fall of 2016 started mass issue of cards “the World”, said that by the end of the year produced more than 374 thousand cards. In the current year the Bank intends to issue 1.28 million cards, said a Board member, Director of operations Department, VTB 24 Valery Chulkov. More than 500 thousand cards expects to release before the end of 2017 VTB Bank, said the head of service of Bank cards of the Bank Maria Tochilova.
Bank “Opening” will release in 2017 to about 200 thousand cards. “The demand from payroll companies in 2016 was restrained, the main activity took place at the end of the year, so we while we are talking about tens of thousands of cards,” — says Olga Ovchinnikova, the Director of Department of Bank cards and consumer lending of the Bank “Opening”. Bank “the East” is planning to produce 100 thousand cards “the World” in 2017, RBC reported in the press service of the Bank. The Bank is ready to issue in 2017, “hundreds of thousands” of cards. To concretize the figure of the Bank refused. As told in the press service of the Bank, at the end of 2016, the Bank has issued about 20 thousand cards.
A reasonable acceleration
In such a situation, the Central Bank has reason to rush the banks in preparation for 2018, say respondents RBC market participants.
For receiving cards, “Peace” ATM network should not only be connected to the NPCs and it is certified, but also is able to recognize these cards and properly handle the transaction for him. It depends on the network status of each Bank may require updating or revision of the software that require additional expenditure, indicate market participants.
Big banks involved in the issue of the “World” is not particularly interesting, said the chief expert Frank Research Dmitry Tarasov: “they Have the additional costs of new customers are not added — they are customers of banks, and the necessity of mass emission of a large number of cards creates additional load on the system.” That is the consumable component of the transition to card “the World” provokes banks to delay the completion of the training, they say. As previously wrote RBC, as of October 2016, the costs of banks to issue cards, “Peace” was higher than Visa and MasterCard. The difference in price is 35-45% in favor of foreign payment systems, noted the head of Department of payment systems of SMP Bank Elena Bingonova. Market participants also warn that large one-time card issuance poses a serious peak load for the Bank, which at the end of treatment cards will reappear.
Opinion Tarasova shares top Manager of a large Bank of top-30. According to him, most banks already established gambling businesses with international payment systems and “additional expenses for the issuance, implementation, maintenance, clearing on cards for many in the short term is undesirable, especially if we are talking about not the major players.”
Heap of problems
The question of haste in preparation of the ATM network is not the only strange aspect of bankers. Further questions from the bankers cause the amendments to the law on NPCs, obliging banks from 1 January 2018 to carry out the operation budget and social payments only on the card “the World”. Bankers do not expect, they will be given a year to reissue cards to all budget customers.
Unresolved is the situation with how to control the flow of funds of budget users. Non-cash movement these money is only permitted on the cards “the World”. But if these maps are other means to allocate budget and track your transactions with them becomes impossible, say bankers, assuming the new costs. “The discussed amendments to the law (depending on what the final wording will be accepted) may require additional modifications of the information systems of banks”, — explained the Director of the processing center of Alfa-Bank Sergey Brynin.
What and how to buy with “World”
Most often with the card “the World” to pay for fast food, the products in the shopping, entertainment and utilities. The highest average check in the map — 6,13 thousand rubles for the rental of a hotel room, and the most active card users, “the World” — the inhabitants of Tambov.
This information leads the “Russian standard” on the basis of the analysis of the data on the transactions made on the cards “the World” of other banks in its acquiring network from 1 July 2016 to 30 January 2017 (see infographic). “Russian standard” is among the three largest banks in terms of acquiring network in the country.
Source: “Russian standard”