Contactless NFC payments

Contactless payments are one of the segments of the mobile payment market.

Mobile payments are contactless (NFC, QR) and remote payments using a payment application installed in the client's mobile device.

• Pay with a phone in a contactless terminal or using a QR code
• Pay online (via app)

NFC Payment Systems

Contactless bank card payments

The largest NFC projects of international payment systems are:

• Visa payWave
• MasterCard PayPass.

Contactless payments with a smartphone

• Mir Pay
• Samsung Wallet (formerly Samsung Pay)
• Android Pay
• Apple Pay

Security of contactless payments

Main article: Security of contactless payments

NFC payments in Russia

2025: YuOney unveils offline payment plates

JMoney has launched payment plates - a physical product for paying for purchases through the SBP. The company announced this on October 17, 2025. Read more here.

2022: Mir system operator to offer platform to replace Apple Pay and Google Pay

In the fall of 2022, the operator of the Mir system, the National Payment Card System (NSPK), will present a bank payment form for contactless payment. Financial organizations will have the technical opportunity to implement a payment service using QR codes formed in mobile devices of cardholders. This was announced on September 22, 2022 by representatives of the Mir payment system. Read more here.

2021: Pay payments began to be used 2.5 times more than Russians

On August 4, 2021, it became known that in Russia, citizens began to pay for purchases using Pay technology more often. The number of such contactless payments for 7 months of 2021 increased by 36%, turnover - 2.4 times, and the number of payers - almost 2.5 times.

The largest growth, 11.3 times, was among purchases in the amount of 500 thousand to a million rubles.

These conclusions were reached by analysts at YuKassa (payment service YuOney, part of the Sberbank ecosystem). They studied various payment methods in more than 120 thousand online stores from January 1 to July 31, 2020 and 2021.

For seven months of 2021, the share of Pay payments among other payment methods amounted to 17%. 10% of purchases were paid through invoices on social networks and instant messengers, 4% on cards and accounts of YuOney. Bank cards, virtual and plastic, still lead with a 69% share.

The number of Pay payments for seven months of 2021 increased by 36% compared to the same period in 2020, the turnover and number of payers increased 2.4 and almost 2.5 times, respectively. The average check grew by 77% and amounted to 1,531 rubles. The main number of purchases using mobile systems falls on Apple Pay - 76%, and on Google Pay - 24%. The number of purchases through Google Pay increased 3.6 times, through Apple Pay - by 13%. But the average check is higher for Apple Pay: 1,574 rubles against 1,395 rubles for Google Pay, - said Ivan Glazachev, CEO of YuMoney.

During the reporting period, the number of purchases paid by bank cards increased by 24%, and turnover increased by 20%. At the same time, the average check decreased by 4%, to 1384 rubles. The number of payers increased slightly - by 10%.

The increase in the number of payments through social networks and instant messengers amounted to 6%, the increase in turnover - 19%. The average check increased by 13% and reached 586 rubles. Sales of goods and services on credit or installments via the Internet have significantly increased. The number of purchases compared to 2020 increased by 51%, turnover - by 67%. The average check increased by 11% and amounted to 20,822 rubles, and the number of payers increased by 46%.

The share of purchases paid from smartphones in the seven months of 2021 increased by 9%, from 50% to 59%. But payment from desktops decreased from 48% to 40%. The rest of users pay for purchases from tablets.

For 7 months of 2021, the number of users who paid for purchases with YuOney virtual cards increased by 57% compared to the number of plastic card holders. At the same time, users who pay for purchases with virtual cards online are twice as many as paying offline.

The number of online and offline purchases from virtual machines for 7 months of 2021 increased by 17% compared to last year. The same growth was shown by the turnover. The average check did not change and amounted to 669 rubles. The dynamics on plastic cards is lower: online and offline purchases have increased by 10%, and turnover has grown by 2%. The average check decreased by 7%, to 748 rubles. JMoney has released more than 19 million virtual and over two million plastic cards.

For 7 months of 2021, the majority of Pay payments (17%) fell on amounts from a thousand to two thousand rubles. In 2020, purchases from 100 to 200 rubles (28%) were in first place. In 2021, the largest growth, 11.3 times, was recorded among purchases in the amount of 500 thousand to a million rubles. In 2021, bank cards were most often paid for purchases worth from 100 to 200 rubles (21%), and in 2020 their share was 18%. The largest growth, 24.5 times, is in purchases worth from one to 10 million rubles. On credit or installments via the Internet, they often bought goods and services worth from 10 to 20 thousand rubles. Their share was 30%, which is 7% less than last year. The largest growth, 3.3 times, was among purchases worth from 80 to 100 thousand rubles.

{{quote "The most noticeable number of payers using contactless payment in seven months of 2021 increased in the category of medical services. There were 5.2 times more of them than in the same period in 2020. The number of payments also increased. Turnover increased 5.9 times, the average check - by 13%, to 2856 rubles. Most often, users paid contactless various services and goods from marketplaces. And the most expensive purchases were air tickets - 29,746 rubles, - says Ivan Glazachev. }}

St. Petersburg became the leader in the increase in the number of purchases and users paying using mobile payment systems: an increase of seven and 5.7 times, respectively. Residents of Moscow and the Krasnodar Territory also actively used pay payments. In terms of the growth dynamics of these indicators among bank card holders, all other regions are ahead of St. Petersburg: an increase of 3.7 and 2.8 times. Petersburgers are also in the lead in bills issued in social networks and instant messengers. But goods and services on credit or installments via the Internet were more often taken by Muscovites. The largest increase in the number of purchases, as well as the number of payers (3.6 times), was in the Bryansk region. YMoney cards and accounts were most often used by residents of St. Petersburg to pay for purchases. It also recorded the largest increase in the number of purchases and payers: by 40% and 113%, respectively.

Top 10 regions with the largest average checks on contactless payments for 7 months of 2021, rubles:

• Magadan region - 2166
• Jewish Autonomous Region - 2105
• Kamchatka Territory - 1935
• Primorsky Territory - 1820
• Amur Region - 1730
• Sakhalin Oblast - 1711
• Republic of Sakha (Yakutia) - 1691
• Khabarovsk Territory - 1606
• Yamal-Nenets Autonomous Okrug - 1444
• Irkutsk region - 1391^[1]

2020: Yandex.Cash: Contactless payments affect the average check

Contactless payment through Apple Pay and Google Pay on sites or in applications is accepted by 19% of companies using Yandex.Cash. This was announced on February 12, 2020 by Yandex. In some product categories, the average check for contactless payment is noticeably more than for payment in other ways - for example, in clothing and footwear stores it is 5 times higher. Read more here.

2019

Russia entered the top five countries for purchases using wearable devices

In early December 2019, Mastercard published the results of a study on the popularity of wearable payment technologies, including smart watches, rings or bracelets with NFC technology support.

Holland is in 1st place in terms of payments with wearable devices: every third transaction takes place here (33%). In second place is Britain (18%), followed by Switzerland (8%) and Russia (7%). This applies to both active devices (requiring charging) and passive (not requiring charging): bracelets, rings and regular watches.

Mastercard published the results of a study on the popularity of wearable payment technologies, including smartwatches, rings or bracelets with NFC technology support

Most wearable device payments in the world are in, Australia followed by. are in the Netherlands USA ranking by 8 positions, and all other places in the top ten are occupied by European countries. To Europe The number of payments using wearable devices is growing: the total number of such transactions carried out last year is 19.4 times more than in. North America

Mastercard says that Europeans, including Russians, are increasingly paying for purchases with wearable devices with contactless technology. So, over the year, the number of payments made using such gadgets increased 8 times in Europe. More than 30 types of such payment means are available to users.

In 2019, 61% of purchases in European stores were paid for using contactless technology. The company associates this with the widespread use of wearable devices with NFC. The degree of implementation of this payment method in retail stores also increased significantly - from 42% to 70%

According to Mastercard calculations, by December 2019, one in five adults is wearing a smartwatch or fitness bracelet. By 2020, the global market for wearable devices will be measured at 30 billion euros, the company predicts.^[2]

Over the year, the popularity of contactless payments from smartphones has doubled in the Russian Federation

On November 22, 2019, it became known that MTS Bank studied the dynamics of the preferences of Russians when paying for goods and services from plastic cards and mobile contactless payment services.

An analysis of data from October 2018 and 2019 found that:

• over the past 12 months, the number of users of Apple Pay, Google Pay and Samsung Wallet (formerly Samsung Pay) has doubled, and plastic users by only 3%;
• in October 2019, MTS Bank cardholders using mobile contactless payment services paid 3.7 times more often in retail outlets than in plastic; a year earlier - 3.2 times more often.

As noted in MTS Bank, the popularity of payment using smartphones and gadgets in Russia is growing due to the convenience and security of payments, as well as the widespread use of cash POS terminals with contactless NFC readers in retail outlets. According to the international consulting company The Boston Consulting Group (BCG), Russia is the largest market in terms of banking operations using digital services.

The use of a smartphone in payments continues to show rapid growth - the turnover and number of operations from October 2018 to October 2019 almost doubled, while the increase in plastic was only 11.2% and 18.4%, respectively.

• In October 2019, the share of contactless mobile services in the total turnover of card operations increased to 18.1% from 12.3% a year earlier, and the share of transactions - to 20.8% from 14.2%, respectively.
• At the end of 2019, Russians are also more likely to pay with a smartphone: on average, 23 payments per month against 16 from "plastic." In October 2018, there were 23 and 14 such payments, respectively.
• In October 2019, the amount of payments from one card through contactless payment services was 12,900 rubles, compared with 12,700 rubles a year earlier, from "plastic" - 10,100 rubles and 9,500 rubles, respectively.

In October 2019 Apple , Pay was the most popular service among MTS Bank customers. Despite the fact that in 2018 and in the first half of 2019, according to MTS, iPhone they occupied only the third place in sales, significantly inferior to smartphones Samsung and/. HuaweiHonor

• Apple Pay makes 49% of transactions, Google Pay 31% and Samsung Pay 20%. For comparison, in the same month last year, Apple Pay accounted for 53%, Google Pay - 25% and Samsung Pay - 22% of transactions.

MTS Bank believes that the growth of payments using mobile contactless payment services is directly related to the distribution and availability of NFC smartphones.

• The share of NFC smartphone sales in the MTS retail network in January-September 2019/2018 increased to 49.1% from 30.5% of the total number of smartphones sold.
• For nine months of 2019, sales of NFC smartphones increased in physical terms by 67%, in monetary terms - by 32% compared to the same period in 2018.
• The average price of an NFC smartphone in 2019 was 21,840 rubles, in the past - 27,774 rubles.

According to MTS Bank, the popularity of contactless payment services for paying for trips in public transport is growing: 7.7% of operations in October 2019 against 5% in October 2018. Including, the share of payments in buses (passenger city and intercity flights) more than tripled - to 2.9% from 0.9%, the share of transactions for taxi trips increased by one and a half times - to 2.5% from 1.7%. Buying food from supermarkets and grocery stores, as well as paying in cafes and restaurants, like a year ago, are the most popular payments. In October 2019, 63% of transactions from smartphones and 54% from "plastic" were made in these categories. A year earlier, these figures were 66% and 55%, respectively. Contactless mobile services are still much more popular than "plastic" in cafes and restaurants. In places of catering, payment by a smartphone is twice as popular as "plastic" (19.7% versus 9.5%) in terms of the share of transactions. The choice of payment method depends on the audience: the younger and technologically advanced one uses contactless payment services, the older one still gravitates more towards "plastic."^[3]

The market for non-cash payments in Russia has doubled in 3 years

The volume of the Russian market for non-cash payments Russia in 3 years has doubled. This was announced to journalists on September 19, Ekaterina Petelina 2019, which on November 1, 2019 leaves the post of general director of the representative office Visa in Russia.

At the same time, we are looking at such an indicator as the penetration of electronic payments into everyday spending of households, which grew from less than 20% to 37% - the market growth was due to this conversion, she said.

According to Petelina, the number of POS terminals in 3 years increased from 10 per 1000 people to 19 per 1000 people, which corresponds to the indicators of the largest payment markets in the world. At the same time, 90% of terminals in Russia are capable of receiving contactless cards and devices.

The volume of the Russian market for non-cash payments in Russia has doubled in 3 years

According to Kommersant, in May 2019, Deputy Chairman of the Board of the Bank of Russia Olga Skorobogatova estimated the share of non-cash payments in retail turnover at 61%. She noted that the Central Bank plans to increase this share to 80% in four years. The forecast for the end of 2019 is 66%.

Ekaterina Petelina claims that by September 19, 2019, contactless technologies account for more than 70% of payments in Russia. In the first quarter of 2019, Russians performed 6.8 billion such operations in the amount of 5.7 trillion rubles.

According to Petelina, users of mobile payment systems make purchases more often. In the summer of 2019, OTP Bank disclosed that on average its customers make 11 purchases by card per month, but for Apple and Google Pay users this figure is almost 3 times higher - 31 purchases per month, Vedomosti writes.

According to the Bank of Russia, in 2019, transactions for payment by contactless method for the year increased 4.4 times in the Russian Federation, about a third of them were performed using smartphones.^[4]

Sellers in Russia began to use smartphones for card payments instead of POS terminals

On September 19, 2019, it became known that sellers in Russia began to use smartphones for bank card payments instead of POS terminals. Promsvyazbank has launched SoftPos technology for contactless card payments of any bank. Read more here.

SAS and PLAS log data

SAS, a player in the business analytics market, partnered with PLAS magazine in the spring of 2019 to find out how far contactless payment services - Apple Pay, Samsung Wallet (formerly Samsung Pay), Google Pay and others - compete with familiar bank cards. The results showed that contactless payments are the future regardless of specific form factors: only 8% of respondents use exclusively contact plastic cards. All other survey participants choose certain contactless payment tools - both mobile services and classic cards - including their various combinations.

Plastic still maintains its position. According to the survey, half of the respondents most often use them. At the same time, cards with a contactless and contact interface have become the most popular payment tool: 42% of respondents named them their main payment tool. Among alternative contactless services, Apple Pay turned out to be the most popular: with its help, 21% of respondents most often make payments. Android Pay and Apple Pay services are preferred by 6% and 4% of respondents. The rest of the survey participants, with the exception of the mentioned 8% of supporters of contact cards, do not allocate only one main payment means for themselves, but use approximately equally different payment methods in certain combinations: card and cash (10%), card and mobile services (8%), etc.

It is curious that contactless key fobs and bracelets with payment systems cards tied to them are still more curious gadgets than a working payment tool. Only 2% of respondents reported that they use such devices, but no one called them their main means of payment.

Despite the fact that plastic bank cards are still the main contactless payment tool, mobile form factors are also used quite often. Thus, 46% of respondents resort to them daily - including those users who have designated plastic as the preferred means of payment. About 13% of respondents are calculated through such services several times a week, 4% - several times a month, and only 31% are not familiar with them in practice.

The main reason why mobile contactless payment form factors are gaining popularity, 73% of respondents called the lack of need to carry a card with them - only a smartphone is enough to make a payment. The ability to carry out an operation for a small amount without a pin code became the second most important advantage - 59% of respondents emphasized it. For 43%, contactless technology as such has become a key argument in favor of mobile payment services, and another 20% attract additional bonuses that can be obtained when making payments in this way.

Despite the high level of loyalty to mobile contactless form factors, 51% of respondents faced difficulties in using them. At the same time, 23% were due to the insufficient prevalence of such tools - the payment could not be made, since the seller was not ready to accept it in this way. 28% of respondents had problems with reading. Single answers fell on options such as the phone hanging after payment, difficulties reading a fingerprint in Apple Pay, inability to pay due to phone discharge, etc.

Nevertheless, the survey participants are confident that the future is behind contactless mobile form factors - this point of view was expressed by 97% of respondents. At the same time, 40% believe that they will replace plastic over time, and 57% believe that they will become widespread along with plastic cards, which will also remain a popular means of payment.

2016

MasterCard and Visa data

According to MasterCard, the number of contactless transactions on cards of this payment system in Russia more than quadrupled in 2016. Visa calculated that 41% of Russian citizens owned contactless cards in 2016, 38% regularly used them. According to a survey of this international system, the main arguments in favor of this form of payment are convenience (83%), speed (56%) and the novelty of technology (18%). 52% of those who have not yet acquired it intend to issue a contactless card with a high degree of probability. At the same time, 77% of respondents are confident in the safety of transactions on contactless cards: 58% of respondents used a contactless card to pay for large purchases.

Launch of Visa, Mastercard, Samsung Pay, and Apple Pay systems in Russia

In 2016, Visa and Mastercard payment systems launched their contactless payments.

According to a study by J'son Partners Consulting, according to the results of 2016, the audience of users of contactless payments in Russia, including mobile payments using NFC technology, can reach 7.5 million people.

This segment received an additional impetus for development with the entry of NFC-based mobile payment services into the Russian market in 2016, such as Samsung Wallet (formerly Samsung Pay) and Apple Pay. In the first week of the Apple Pay service, over 125 thousand Russians loaded their cards into it. And according to VTB24 Bank, Samsung Pay's turnover on bank customer cards tied to the service exceeded 1.2 million rubles in the first week of operation alone.

Central Bank expects an increase in contactless payments

In 2017, contactless payments in Russia will operate on three payment systems: Visa, Mastercard and NSPK. The Bank of Russia predicts a sharp increase in contactless payments in the country in 2017-2018. This was told by Deputy Chairman of the Central Bank of the Russian Federation Skorobogatova at a speech in the State Duma.

In 2017, this system will be commissioned by the National Payment Card System (NSPK).

"This is our own technology, we develop it independently of other international systems, but it will work on the principle of international standards: it will be read everywhere - both here and abroad," said the deputy chairman of the Central Bank of the Russian Federation.

NAFI: 5% of Russians have already tried NFC payments from a mobile device

5% of Russians have experience in contactless payment using a mobile phone, and 24% used contactless bank cards. This is evidenced by the results of an all-Russian survey conducted by the NAFI Analytical Center in October 2016.

About a third of Russians (30%) regularly pay for everyday purchases by cashless method. This is more characteristic of the highly educated part of the population (43%) and youth aged 24-35 years (40%). Nevertheless, the majority of Russians (70%) still pay for everyday goods and services in cash.

Up to 79% of Russians know about the existence of bank cards with the possibility of contactless payment, while they said that 24% of respondents used them. They have no experience, but 39% of Russians know well about the existence of such cards, another 16% have heard about them in general terms. Russians with higher education reported significantly more often about the presence of experience in contactless payment with cards (30% versus 22% of Russians without higher education).

65% of Russians are aware of the possibility of making contactless payments using a mobile phone. However, only 5% used this opportunity. Another 39% of Russians are informed about them, but did not practice such a payment method, and one in four admitted that they had heard about this technology only in general terms (21%). More than a third of Russians (36%) know nothing about the possibility of contactless payment for purchases using a mobile device.

The presence in the phone of the technical ability to make contactless payments will be the defining characteristic of buying the next smartphone for every tenth Russian (10%). For 30%, this will be a significant bonus. Every second noted that this technical function will not play a role when buying a gadget (50%).

Market Analysis from Russian Standard Bank

In September 2016, Bank Russian Standard presented statistics on the dynamics of contactless payments of its acquiring network (one of the largest in Russia) for 2014, 2015, the first half of 2016.

Turn

The share of contactless payments by turnover increased from 0.5% in 2014 to 1.2% in 2015. And in the first half of 2016 it amounted to 2.1%. This is due to the convenience of using such cards to pay for purchases in the "restaurants" segments, including "fast food," as well as in the "retail" segment - providing the largest share in the total volume of transactions. These 2 segments account for more than 90% of the turnover on contactless payments.

At the same time, in 2016, the share of contactless transactions in the restaurants segment reaches 6.6% of all bank card payments. Bank Russian Standard sees from the analysis of statistical data that most of the small purchases in restaurants (especially fast food) people pay with cards using contactless technology.

Quantity

In general, the trend in the number of transactions resembles the trend in turnover - the share increased from 1.1% in 2014 to 2.9% in 2015. And in the first half of 2016, it amounted to 5.7%.

But it should be further noted that the share of contactless transactions by the number of operations in the restaurants segment reaches 9.1% in 2016, and in 2015 this indicator was at the level of 2.4%, in 2014 - 3%. In second place in terms of the frequency of contactless payments is the entertainment segment - 3.5% in 2016.

Average check

Obviously, contactless payments mainly account for small purchases. The average check of payment by card in the acquiring network of the Russian Standard Bank in 2016 is 1,253 rubles. for ordinary payments by card, and for contactless payments - 450 rubles, for comparison: 2015 - 1,222 rubles. and 540 rubles; in 2014 - 1,408 rubles. and 584 rubles. respectively.

It should also be noted that in the bank's acquiring network, the average check for the "restaurants" segment for contactless payments is 30% lower than for ordinary payments by card (contact-free - 323 rubles against - 456 rubles contact payment). A similar situation in the segment "hotels, accommodation" - the average check of a contactless transaction is 3 times lower than the contact one. But in the segment "health" the opposite situation is the average check for contactless payments - 11,186 rubles, against 2,971 rubles for ordinary payments by bank card.

In recent years, there has been no significant increase in the acquiring network of transactions on cards with contactless technology from new significant card issuers. The number of large issuing banks seriously increased in the early years of the launch of the technology, starting in 2011. Now the growth of indicators is due to the number of transactions, turnover and the average check.

The popularity of NFC payments for travel in the Moscow metro has grown 3 times

The number of passengers paying for metro travel using the Mobile Ticket service has tripled in six months. This was told by Maxim Liksutov, Deputy Mayor of Moscow, Head of the Department of Transport and Development of Road Transport Infrastructure in March 2016^[1].

"Now 37 thousand people a month pay for metro travel using mobile phones with a special NFC module. And the number of users of the new service is constantly growing. Thanks to the introduction of a new ticket menu, we have already managed to halve the queues at the metro ticket office and three times reduce the number of passengers purchasing tickets from ground transport drivers. "Mobile ticket" allows passengers not to think about buying tickets and makes travel in public transport even more convenient for Muscovites, "explained Maxim Liksutov

Today, about 150 thousand were released with support for NFC technology in Moscow. SIM cards. Their owners can pay for the bus, tram and trolleybus by simply attaching a mobile phone to the validator reader.

2012

VimpelCom and Megafon are experimenting with NFC in the St. Petersburg metro

VimpelCom temporarily curtailed in October 2012 its project to implement fare payment in the St. Petersburg metro using NFC technology from a mobile phone. The company explains this by the completion of the pilot project, which took place over four months (from May 18 to September 26).

'Within its framework, a comprehensive study of consumer demand for the service and the capabilities of NFC technology was held. The results obtained by us generally testify to the high efficiency of the technology for the development of fare payment services in public transport, as well as their demand by the mass user, and will help us implement a full-fledged scalable solution for mass use, the development of which the company plans to complete in 1 half of 2013, "- said the press service of VimpelCom.

The solution used now, developed in collaboration with Ambik Tek and launched into test operation in the summer of 2011, from the very beginning had a number of drawbacks: a special NFC module was required to be installed in the phone, using a cable connected in parallel to the SIM card and placed under the battery. Given the tendency to make phones as thin and compact as possible, the module in most modern devices (even considering the presence of four different form factors) either did not fit, or it was difficult to install the loop correctly. Beeline announced support for 80% of phones, however, apparently, it was about the entire fleet available, and not about modern models. At the same time, the built-in NFC modules available in modern smartphones were not supported (for comparison, MegaFon launched a system in Yekaterinburg with external chips, but also support for the built-in NFC). Moreover, the target audience of the service is just advanced subscribers interested in new technologies, who are more likely to use the incompatible Samsung Galaxy S III than the compatible Nokia 3310.

The timing of the implementation of the NFC project "Beeline" has been repeatedly postponed. So, in May 2012, it was about the transition from test pilot operation to commercial pilot operation, the difference between which was that at the initial stage, which started in the summer of 2011, only 100 people tested the service. (they were selected by Bilain on their own, then they participated in focus groups), and in 2012 it was planned to attract up to 2,000 subscribers, while anyone could test the service.

Beeline does not disclose the actual number of beta testers, commenting that the goal was not mass testing, but to achieve certain results. However, it is not difficult to calculate their number: judging by the number of transactions carried out, there were no more than 600 of them, since each tester, buying a module for 125 rubles, also received 5 trips, and, accordingly, would hardly use them. The commercial pilot was supposed to begin back in December 2011, however, due to difficulties with customs clearance, their delivery modules were disrupted and the launch had to be postponed. It was supposed to last until early October, after which it was immediately planned to be transferred to commercial operation. Now it is postponed for almost a year, which demonstrates the attitude towards the project as a non-priority.

Actually, the NFC project is not commercial, but image. The experience of MegaFon, whose NFC-MegaChips in the five million city is used by a couple of hundred people, has already proved this: with the current implementation, payment NFC projects are toys for geeks that are completely unsuitable in real life.

Plans to organize a passage system to the St. Petersburg metro using NFC were also reported by Megaphone"." In addition, contactless payment systems can work, for example, in a cafe (such a project is already being developed), and an NFC phone can be used as a pass - to a school, university, for some objects that require registration or identification, says an employee of the Megafon press service. It will also be possible to connect to the discount system - a person will be able to combine all the discount cards he has and use the phone to get a discount, he promises^[2].

Forecast of the volume of payments in Russia in 2012 - 30-150 million rubles

According to J'son & Partners Consulting forecasts, the volume of the carrier mobile payments market of the "Big Three" mobile operators in 2012 will amount to about 15-18 billion rubles. With an optimistic forecast, by 2017 the volume of mobile payment transactions in Russia made using NFC-enabled devices will exceed 50 billion rubles, i.e. will amount to about 1% of the world market. Most of the surveyed experts estimated this indicator in 2011 at less than 30 million rubles; forecast for 2012 - 30-150 million rubles.

As of July 2012, pilot projects are being implemented in Russia to demonstrate the capabilities of NFC, developing billing and technological aspects, business models, etc. The main restraining factors of NFC development in Russia are low awareness of potential users about the capabilities of this technology, insufficient infrastructure development and imperfection of Russian industry legislation.

The main participants in the nascent NFC market are the "big three" cellular operators, the largest banks and payment systems. Thus, MTS it implements NFC projects "Quick refueling" at LUKOIL gas stations, payment for goods in UVENCO vending machines (both in), Perm a joint MasterCard payment MTS-Bank solution based on NFC technology for contactless payment of goods and services from a phone using MasterCardPayPass technology, etc.

8 banks issue MasterCard PayPass cards

As of July 2012, 8 Russian banks are issuers of MasterCard PayPass contactless cards, the use of which significantly reduces the time of customer service in the retail sector and services.

2011: MTS and VimpelCom test NFC in metro

In 2010, MTS announced plans to test the NFC fare payment system in the Moscow metro. Testing was completed in the first quarter of 2011, the decision to launch the project into commercial operation depends on the management of the metro, said a source close to MTS.

On October 5, 2011, it became known that MTS was launching Russia's first instant mobile payment system based on NFC technology. With the help of a phone with an NFC antenna, it will be possible to pay for gasoline at Lukoil gas stations - first in Perm, and then in other regions (More about the project)

MTS competitors are also testing NFC payments. VimpelCom planned to launch an NFC project in the St. Petersburg metro by the end of 2011, promised the operator's press secretary Anna Aibasheva. But the operator is guided, according to her, by the massive commercial operation of NFC and is working on several options for joint projects not only with transport companies, but also with large retailers and banks. Earlier, VimpelCom reported that it was testing contactless payment for travel on Aeroexpress trains.

Global NFC Payments Market

2023: Limits on contactless payments in countries around the world. Card

According to data available for June 2023

2020

Mastercard: 78% of all transactions in the European region are made contactless

By, to data MasterCard 78% of all transactions the European in the region are made contactless. The pan-European study examined the opinions and habits of buyers, and the results of the survey confirm that the use of contactless technology is a choice that will pass the test of time. This became known on June 9, 2020.

Almost half (43%) of the Russians surveyed noted that during the pandemic, they became less likely to pay in cash, and 22% claim that they no longer use cash at all, preferring cards. Half of the survey participants began to use cards with the possibility of contactless payment more often, and 16% first tried this technology during the pandemic.

Among the Russians surveyed, 92% agreed with the statement that it is easy to master contactless technology. After the end of the pandemic, contactless technology will not lose its relevance, 82% of Russian respondents believe, and for 70%, one-touch payment has become the most preferred method of calculating for offline purchases. In Europe, these figures were 73% and 64%, respectively.

Mastercard previously noted a doubling of payments smartphones in Europe - from 7% to 14% in the first quarter - but contactless payment with a plastic card remains the most popular way (86%). On average, 28% of Europeans and 36% of Russians prefer to pay for purchases with a smartphone, and 4% - with other gadgets with payment functionality, for example,. for hours

Respondents who use contactless technology every day noted that one-touch payment is hygienic, clean (81%) and simple (85%). As in Europe, in Russia, contactless payment is most often used in grocery (96%), pharmacies (78%) and retail (58%) stores.

Although 78% of Russians and more than half of Europeans (64%) have already mastered contactless technology, since they believe that this is the safest way to pay, work remains to be done to make such types of payments a habit of other users.

In Europe, the popularity of contactless technology was already higher than in the rest of the world, and Mastercard recently proposed to increase purchase limits without a PIN code in 42 countries so that cardholders can take even greater advantage of this fastest and easiest payment method.

Mastercard has always been the leader in Europe in introducing contactless technology, but you can also see how in demand this technology turned out to be among cardholders. Due to the increase in limits for contactless payment in so many countries, we pay special attention to the protection and security of data. Our technology has always helped to explore changes in purchasing behavior and protect cardholders' funds so that they feel confident in the ever-evolving world of commerce, comments Milan Gauder, Executive Vice President, Product and Innovation, Mastercard Europe.

In Europe, fraud against contactless payments occurs noticeably less than with regular card payment, and their number continues to decline. Together with the increase in limits for contactless payment, anti-fraud measures were introduced, such as the use of cumulative limits and increased control. Cardholders can be sure that they are under reliable protection, noted Rigo Van den Brock, Senior Vice President, Cyber Intelligence Solutions, Mastercard.

WHO urges to switch to contactless payments due to coronavirus

On March 5, 2020, it became known that the World Health Organization (WHO) recommends that consumers avoid contact with banknotes and switch to contactless payments to prevent the spread of the COVID-19 coronavirus. Read more here.

2019: Mastercard: Wearable payments gaining popularity in Europe

On December 2, 2019, it became known that, Europeans among other Russians things, they are increasingly paying for purchases with wearable devices with contactless technology. In just a year, the number of payments made using gadgets has increased To Europe eightfold. This trend has become widespread - there is an opportunity to get a smart device with payment functionality in 26 countries, Europe while more than 30 types of such payment means are available to users.

Netherlands occupy the first place in Europe in terms of payments: every wearable devices third transaction takes place here (33%). In second place Great Britain - (18%), then go (8 Switzerland %) and (7 Russia %). This applies to both active devices (requiring charging) and passive (not requiring charging): bracelets, rings and regular watches.

Most wearable device payments in the world are in, Australia followed by the Netherlands. USA are in the ranking in eighth position, and all other places in the top ten are occupied by European countries. In Europe, the number of payments using wearable devices is growing: the total number of such transactions carried out in 2018 is 19.4 times more than in. North America

Top 10 European countries for payments by wearable devices:

• Netherlands
• Great Britain
• Switzerland
• Russia
• Poland
• Sweden
• Czech Republic
• Finland
• Germany
• Ukraine

As wearable technology evolves, fashion brands bring new solutions to the market and create gadgets that become not only functional, but also trendy. As of December 2019, one in five adults wear a smartwatch or fitness bracelet, and by 2020 the global wearable market worldwide will reach an estimated value of €30bn. In addition, the payment functionality of such devices makes it easy and convenient to pay with one touch or movement. Of the most recent examples in Russia - SwatchPAY! was recently launched with MasterCard.

Users can use wearable devices in any place where one-touch payment works. Contactless payments have completely changed the situation in the international market, gaining popularity among issuers, sellers and buyers, especially in Europe. Contactless payments are growing in popularity; they make up 61% of all transactions in European stores - this figure has increased by 23% since the beginning of 2018. The adoption of this payment method in retail stores also increased significantly - from 42% to 70% in the same period. A high level of recognition and implementation paves the way for payments with wearable devices.

{{quote 'author=Fedoseev Mikhail said, vice president of business development and digital payments Mastercard in the region of fast-growing European markets' We at Mastercard see that emerging payment methods are becoming more popular, because users want to make payments quickly and conveniently. It is remarkable how easily cards holders switch to modern payment technologies that fit their 'digital' lifestyle. Wearable devices allow you to make payments as conveniently and easily as possible, while ensuring the necessary reliability and safety, }}

Wearable devices, such as rings, bracelets or smartwatches, have Near-Field Communication (NFC) wireless data technology built in. Contactless payment becomes available once you have connected a debit or credit card. When using passive wearable devices, such as rings, to confirm a transaction, you must enter a PIN code at the payment terminal by analogy with using plastic cards. In the case of active ones, such as smartwatches, payment can be made with one touch, specifying a PIN code directly on the device.

2016: NFC payments at peak of Gartner expectation cycle

Gartner's technology maturity cycle is a graphical representation of the penetration, adaptation and social impact of specific technologies. In 2016, NFC payments are at the peak of expectations.

2015

Deloitte: 5% of NFC phone users will make contactless payments

According to Deloitte estimates, by the end of 2015, 5% of users smartphones NFC from will make contactless transactions at retail outlets at least once a month, while in mid-2014 only 0.5% made such transactions. According to Strategy Analytics forecasts, the turnover of mobile NFC payments by 2020 will reach $130 billion.

Launch of Samsung Pay and Android Pay

After the launch of Apple Pay on October 20, 2014, Google and Samsung entered the market with their solutions:

• Android Pay (launched in May 2015) and
• Samsung Wallet (formerly Samsung Pay) (launch of the system in the summer of 2015).

In addition to NFC, Samsung Pay uses MST (Magnetic secure transmission) technology, which allows a portable device to simulate a regular bank card.

In addition, the latest versions of Android systems have a built-in Google Wallet API, which allows you to create applications that provide the user with the ability to make mobile payments, not only using NFC, but also on the Internet.

2014

IDATE: €4.6bn NFC payments

The volume of transactions using NFC technology in 2014 is estimated by IDATE at 4.6 billion euros (data from the summer of 2014). In 4 years, it will reach 53.6 billion euros. At the same time, the global market for payment transactions accounts for several hundred trillion dollars annually. Such a serious volume gap shows the differences between the two markets, but also stimulates the contactless payment market to develop.

The mobile payment market is still in its infancy, although there are many commercial offers and sufficiently developed technical capabilities, according to the IDATE report. However, most online and mobile payments are still made with a debit or credit card, and stores still pay with cash, cheque or payment card.

IDATE estimates the e-commerce market at €1.145 billion, with 34.8 billion operations in the sector in 2014 (according to CapGemini). In particular, mobile commerce accounts for 29 billion transactions worth 115 billion euros, of which 13% are transactions through alternative payment systems (without the participation of bank payment cards).

In addition, in 2014, IDATE predicts that 278 million NFC mobile phones will be used worldwide, and 28 million users are likely to use NFC to make payments.

As for billing systems operators, this market, according to IDATE, will reach 18 billion euros in the coming years. At the same time, about 30% of this volume will fall on direct online billing.

MarketsandMarkets: NFC Payments Volume $4.9 Billion

According to MarketsandMarkets estimates, in 2014 the turnover of contactless payments in the world amounted to about $4.9 billion, and by 2018 it will approach $10 billion.

Apple Pay launched in the US

According to the analytical agency ITG, since the launch of Apple Pay in the United States on October 20, 2014, by December 2014, about 1.7% of digital payments made in the country had passed through the system.

2012

Japan plans NFC migration with in-house payment technology

As of July 2012, the countries with the largest distribution of contactless payment systems include Japan, which uses the FeliCa system close to NFC, developed by Sony. Services under the Osaifu-Keitai brand include electronic money, identification and loyalty cards, fare, credit cards, etc. At the end of 2011, Japanese mobile operators announced plans for a phased migration from Felica technology to NFC.

Juniper Research: In 2017, NFC payments will exceed $180 billion

According to forecasts of Western analysts, the share of contactless mobile payments until 2016 will remain quite low. In their opinion, "the use of contactless NFC payments entails changes in consumer behavior and requires interaction between all interested parties - banks, mobile operators, card networks and sellers." All this takes a long time, so, at least until 2015, analysts do not expect NFC payments to enter the mass market.

According to Juniper Research (2012), in 2017, one in four mobile phone users in the United States and Western Europe will pay for goods and services using NFC-enabled devices. According to the results of 2012, no more than 2% of mobile users in these regions will pay for purchases in this way. In 2017, the volume of mobile payment transactions made using NFC-enabled devices will exceed $180 billion.

NFC revenues will help cellular operators compensate for the decline in ARPU, but this requires convincing the prospects of the new retail technology.

According to Juniper Research analysts, 2011 turned out to be the threshold when the technology "matured" and its institutional design took place. The Isis consortium, which includes leading cell phone manufacturers and North American carriers, has approved technical standards for the use of NFC in mobile phones. Almost all vendors have already announced NFC devices, and cellular operators and financial organizations have launched pilot projects. Interest in the new technology is fueled by the launch of the Google Wallet payment system.

Juniper experts are confident that all these factors will lead to the emergence of a new segment in the e-commerce market, and in 2012 the global turnover of NFC payments will amount to more than $25 billion, and by 2017 this figure will exceed $180 billion. The most advanced regions will be North America, Western Europe, the Far East and China, these countries will account for about 90% of payments. By 2017, one in four mobile phone owners in the United States and Western Europe will pay for goods in the store using NFC, the researchers believe.

Still, the NFC's future isn't as cloudless as it sounds. The "brake" of the process may be retailers who are suspicious of the new technology and prefer to invest in services with traditional plastic cards. Their potential partners in an environment of phone makers, mobile operators and banks have yet to convince the retail business to switch to NFC, the report's authors argue. "This is a critical moment for NFC retail payments. Despite the significant success achieved today, the market potential can only be realized if all participants in the ecosystem make an appropriate contribution to the development of technology, "comments one of the authors of the study, WindsorHolden, whose words are quoted in a press release.

It should also be noted that although $180 billion is a huge figure in absolute terms, this is not so much against the background of the turnover of the entire e-commerce market. Juniper Research predicts that in 2017 it will reach $750 billion. Even more striking is the comparison with the total turnover of the retail market, which in five years will amount to about $16 trillion.

NFC payments at peak of Gartner expectation cycle

In 2011, in its report, Gartner placed NFC payments at their peak in the "Excessive Expectations" cycle.

The 2012 chart shows that NFC payments have advanced significantly on the curve. However, according to the researchers, NFC payments will take another 5-10 years to reach the mainstream level, that is, the Productivity Plateau, while NFC technology itself will take two to five years.

Gartner, August 2012

In the next scenario, Human Interaction with Technology, Gartner calls NFC "tipping point technology," allowing people to interact with the technology world "in a more natural way."

ABI Research: NFC payments amounted to $4 billion

ABI Research predicts a sharp increase in payments made using mobile phones and short-range communications (NFC) technologies in the coming years. Although in 2012 it amounted to only $4 billion, in 2016 the milestone of $100 billion will be crossed, and in 2017 the volume of payments will grow to $191 billion. The growth will be triggered by the convergence of various types of payments - contactless, personal and network - which will be processed by one NFC-enabled device. This will entail the convergence of a variety of markets, from retail sales and tickets to access controls.

Apple does not support NFC technology, promoting its own Passbook mobile payment system instead. However, ABI analysts believe that soon it will have to solve the problem of NFC support.

The first in the convergence will be the markets for tickets and transport services, analysts say. By 2017, 26% of NFC-enabled mobile devices will have a contactless ticket payment app installed. Transport companies will be able to offer additional services: route planning, schedules, advertising, and so on. However, analysts say, convergence business models have not yet been worked out.

NFC-enabled POS terminals

2016:235 thousand POS terminals with NFC support in Russia

The popularity of contactless payments in Russia is also facilitated by the development of infrastructure. According to Gemalto, the number of POS terminals with NFC support in our country in 2016 reached 235 thousand, which is about a fourth of the total device base.

2014: 21.4 million NFC-enabled POS terminals installed worldwide

The development of the market and the increase in the penetration of contactless payments are largely correlated with the available infrastructure. Thus, according to Berg Insight estimates, in 2014 the number of installed POS terminals with NFC support in the world increased by 71% to 21.4 million devices, and by 2019 their number will be 75 million, which will correspond to an average annual growth rate of 28.4%. According to J'son & Partners Consulting estimates, in Russia in 2013 the number of POS terminals with NFC support amounted to 25 thousand units, and in 2014 the number of such terminals more than doubled.

2011: Deliveries of NFC-ready POS terminals in the world doubled to 2.5 million units

Deliveries of NFC-ready class POS terminals doubled worldwide in 2011 to reach 2.5 million. Sales of POS terminals are projected to grow with CAGR of 49.4% in the next 5 years, resulting in 43.4 million deliveries in 2017. These indicators correspond to the penetration of these devices from 8% in 2011 to 53% in 2017. The highest penetration rates are expected in North America (86%) and Europe (78%), and in other regions - about 38%.

Notes