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Payments service Android Pay Google will enter the Russian market this spring, several sources say RBC. He will have to “catch up” already entered the Russian market with Apple Pay and Samsung Pay
Android Pay is owned and operated by Google the service to make purchases via smartphone will become available in Russia in April. About RBC told three sources close to major Russian banks.
Another source in banking circles said that the launch is planned in April—may. “Banks are working to introduce Android Pay and can start it in the next two to three months. In particular, it makes Sberbank and Alfa-Bank”, — said the interlocutor of RBC. The interlocutor in one of the mobile retailers confirmed that the banks intend to launch Android Pay in the spring.
That payment system Google work in Russia in 2017, said in November 2016 Director of business development and digital payments, Mastercard in Russia Mikhail Fedoseyev.
Android Pay is a contactless payment system based on payment service Google Wallet, which was introduced in 2011. Later, the development was renamed as Android Pay, her announcement took place in 2015 at the conference Google I/O. At the moment Android Pay works in the US, the UK, Singapore, Australia, China (Hong Kong), Poland, New Zealand, Ireland and Japan.
A Google spokesperson declined to comment on the timing of the launch Android Pay in Russia.
As explained by a leading analyst of Mobile Research Group Eldar Murtazin, the platform offer payment systems Visa and Mastercard. On the one hand, it connects to Google (or promoting the same services, Apple, Samsung), with another — banks.
“In Russia we are actively working with financial institutions to market payments service Android Pay and expect to run it with multiple banks in a short time”, — have informed RBC in the press service of Visa. At Mastercard declined to comment.
“Alpha Bank is happy to offer its customers Android Pay as soon as this technology will become available in Russia. The timing of the launch determines Google”, — told RBC Director of products and projects Alfa-Bank Tatiana Yarmola. The representative of Sberbank declined to comment.
For the functioning of Android Pay the required smartphone running on the Android operating system version KitKat 4.4 and above with built-in NFC (Near Field Communication) which allows you to make a payment, bringing the device to the payment terminal. Also Google will work on “smart” watches that support Android Wear 2.0 and have NFC chip. At the moment this device, LG Watch LG Watch Sport and Style.
How many of the relevant queries of the service devices in the hands of the Russian population — no data. According to the representative of a specialized retailer “Coherent”, all sold in 2016 smartphones NFC were supported by 19%.
In 2016, Russia has sold 26.8 million smartphones, said the study one of the largest Russian cellular company MTS. Of this amount, 21,6% were Samsung devices, and 11.1 percent Apple, 8,1% — Lenovo, 7,2% — ZTE, a 6.8% Alcatel 6,4% — Fly, 4% for Huawei and LG.
According to “Connected”, “smart” watches were sold 137 thousand, including 45% of production of Apple. On LG as a whole accounted for about 1% in this segment of the market, said the representative of “Coherent”.
Thus in Russia already operate competing services, Apple and Samsung. They were started last fall. The representative of MTS Dmitry Solodovnikov suggested that the devices the South Korean manufacturer will work simultaneously two of the payment system, Samsung Pay, and Android Pay. A Samsung spokesperson refused to “comment on speculation”.
Solodovnikov told RBC that the company together with MTS-Bank (71,87% owned by Sistema, which controls MTS) are in talks with Google about how to be in the first wave of launch Android Pay in Russia. “In General, we give priority financial direction. Now in the subscriber base of MTS was 10 million devices that support NFC technology,” said Solodovnikov, the proviso that some of the devices of that number working on iOS operating system.
To use Android Pay, a Russian user will need to download the appropriate app from the Google Play store and bind the Bank card connected to the system. After that, the sales points that support contactless payments, you can pay your goods on hand, equipped with a contactless terminal. Payments security is ensured by PIN entry or a fingerprint scan if the device has a corresponding sensor. Instead of the number of the credit card will be used a token is a special room which is formed at the moment of authorization.
“From the point of view of platform security, Apple Pay and Android Pay equivalent. Both systems use tokenization, card data is not stored on the device itself. There was no history hacks Android Pay”, — said Eldar Murtazin.
A spare purse
The success of Android Pay in Russia will depend on how Google itself is interested in promotion of the service, how much marketing and other efforts are willing to make, says Murtazin. In the US when paying in stores with Android Pay the buyer offers a variety of bonuses. The analyst doubts that the new service could lead to a growth in volume of contactless payments in the country. “When Android Pay is coming to Russia, will add just another payment system. Those who wanted to try a new type of payment, already did that to Samsung and Apple”, — says Murtazin.
As previously clarified by RBC, the share of users of contactless payments Apple and Samsung yet. According to the assessment of MTS in Russia more than 100 thousand people used services of both systems. Thus, according to the CBA, as of 1 July 2016 in Russia produced more than 248 million Bank cards.
“Although the banks are somewhat disappointed with business results the introduction of Apple Pay, but the point of this was — it may not be possible to dramatically oust its competitors in the retail transaction, but it was a good marketing ploy”, — the partner of Bain & Company Yegor Grigorenko.
In this case, two market participants pointed out possible problems when connecting the Android Pay to the service “Yandex.Money.” The latter had previously partnered with Apple Pay and Samsung Pay. However, “Yandex”, which owns 25% of “Yandex.Money,” in the last year and a half has tense relations with Google. Russian company complained to the FAS on the competitor, arguing that that violates the antitrust laws, demanding priority for their services when you install the Android. The Representative Of “Yandex.Money” is not confirmed, nor denied the information that the service talks about connecting to Android Pay.