8.6 C
New York
Sunday, February 5, 2023
Home News Digital Russia? Cash is on the decline and digital payments are on...

Digital Russia? Cash is on the decline and digital payments are on the rise (thanks to Putin)

According to analysis from Sberbank, Russians made more payments digitally than with cash.

SberData project found out that Russians made 50.4% of total transactions with cashless payments during 2019, up 4.5 percentage points during the same period in 2018.

The migration away from cash is not limited to big cities. Murmansk region in the northwest leads the way with 60% of transactions cashless. However, Moscow and Saint Petersburg are coming in at 30th and 19th places in the ranking of Russian cashless cities.

Russia’s migration to digital payments has been partly driven by the creation of a national payments card intended to challenge the dominance of Visa and MasterCard.

The scheme was built at the behest of President Vladimir Putin in response to US and EU sanctions in 2014 which saw MasterCard and Visa cut off services to several of the country’s banks following the annexation of Crimea.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Partnership between Credits and Unlimint

Credits is a digital neobank that combines many financial services into one application, focusing on providing financial services for the cryptocurrency space.

UK Neobank Zopa Raises £75 Million in All-Equity Investment

The company has 850,000 customers across its different businesses and is on track to be profitable for the full year in 2023, the first time since its founding 17 years ago.

UK SMEs Lean on Business Finance and Credit for Growth and Sustainability

As interest rates remain high, borrowing will continue to play a significant role in helping these businesses achieve their goals.

UK FinTech Funding: A Resilient Performance Amid Global Decrease

Despite the decline in funding for UK fintechs, there are still investment opportunities available.