Pro100 (payment system)

PRO100 - payment system of Sberbank of Russia. It is available to use via the bank card with the chip.

Is engaged in development of Sberbank PRO100 payment system since 2010. It succeeded the Sberkart system which Sberbank created in 1993. Because a system was based on the closed standards, it functioned only in network of Sberbank and was not widely adopted enough. So, according to MForum Analytics, in 2010 over 85% of bank card transactions in Russia serviced Visa and MasterCard. From the Russian payment systems in 4% Zolotaya Korona had a share, and at Sberbank was also that less.

From the beginning of issue of UEC in 2012 in PRO100 payment system developed by Sberbank which is implemented only within this project now it is made by several hundred thousands of transactions. Potentially 3-4 million citizens can become its users.

During the period from October 1, 2012 to February, 2013 in network of Sberbank about 300 thousand transactions with use of PRO100 payment system developed by bank were made, told CNews in Sberbank, having added that this system is implemented only within the draft of the universal electronic map (UEC) now.

PRO100 is the only system fixed today at the legislative level. Based on PRO100 payment system the fastest and inexpensive start of national payment system is possible. The Single UEK payment and service system includes 14 banks, 4 banks emit cards with PRO100 payment application - it is the main Russian emitting banks to which share more than 40% of all market of acquiring fall. 359,000 trade organizations accept for payment cards with this payment system. Cards with PRO100 banking application are accepted more than in 88,000 devices of self-service across all territory of the Russian Federation.

Use of a system on UEC. Competition to MasterCard

Cards based on PRO100 abroad are not accepted therefore the order of implementation of the universal electronic card (UEC) approved by the Ministry of Economic Development allows placement of the additional banking application, with the clause - for use of the card outside Russia. However Andrey Petkevich, the vice president of UEC, said that the additional application will be attached besides the account, as PRO100, and will allow to pay off with the card as abroad, and in Russia. The choice of the application of the card at making payment will perform the terminal structure of bank.

In the latest revision of the rules UECs which are also approved by the Ministry of Economic Development it is said that participants should place on the card only PRO100 application. However, already at a boundary of 2012-2013 of "UEC" was going to prepare new edition of rules. It is possible that there also the possibility of adding on UEC of the international payment application will enter.

With high probability as the additional banking application on UEC MasterCard will be used, Petkevich says. He connects it with the fact that PRO100 technically is based on the product MasterCard. In particular, the Russian payment system uses its M/Chip application working based on open bank standards that allows for card transactions based on PRO100 to use already existing infrastructure.

The main difference between systems consists in the amount of rates on transactions and also that payments through PRO100 are processed in processing centers in the territory of Russia and information on them is not taken out abroad. "UEC" have an agreement granting the right to use M/Chip in the universal electronic card also.

Lower rates will help to compete with a foreign analog of PRO100, consider in Sberbank. "Regarding rates and conditions of participation, it is national payment system, more available to participants, which fair rates will allow to accept these cards not only in those shops where the international cards are now accepted, but also in those which are not able to afford to work with cards now and so far accept only cash", - note in Sberbank.

Now it is possible to pay off with the card based on PRO100 in any trade and service companies and shops which are serviced by UEK participating banks, speak in Sberbank. If to judge by official statements, like those is only nine so far. And here it is still possible to draw money from the PRO100 card only in network of Sberbank.

"By the time of the beginning of issue of UEC to citizens in the industrial mode, such opportunity will appear in network of other UEK participating banks. The number of banks of participants will be several tens of banks, and these are several tens of thousands of ATMs through the whole country", - assure of Sberbank.

Nobody hides orientation of UEC to payment system of Sberbank "PRO100" aiming to compete in Russia with Visa and MasterCard. Bank is the main driver of the draft of the universal map and, using it, quite naturally aims to increase purely points in which "PRO100" is used.

According to the vice president of UEC Alexey Popov, the issued card will use acquiring network of Sberbank, Uralsib, "Ak Bars" (two other UEK banks shareholders).

"It is several tens of thousands of devices of self-service and also many large retail chain stores, shops, restaurants", - he said in March, 2013.

In the first quarter 2013 as Popov calculates, already 15 banks will be ready to place the logo on cards.

For March, 2013 scales of use of "PRO100", number of points in which it is possible to pay off with such cards even in Russia are not comparable to the foreign competing payment systems. Business of such systems are percent from transactions which they helped to perform. In case of UEC it is right too - for commercial services, i.e. any use of the card for payment of non-state services, the commission will undertake use of the payment application on the card. Its size is not determined yet.

Sometimes Visa or Master agree with sales points about discounts if you pay with cards of their system, and now competitors actively develop contactless payments: PayWave and PayPass respectively.

The supporting marketing actions of foreign payment systems are clear to the consumer: "pay this month more than all clients of your bank on PayPass and receive …", "pay off in this cafe without contact and receive.". Also at small the amount contactless payment does not require either entering the PIN, or the signature.

UEC at an explanation for users of need of the card goes not from convenience of payments, and from potential existence of other functionality. For example, on the Moscow portal of state services it is possible to become authorized according to the card already now. In the long term on the card also other applications will appear transport, medical. The competing payment systems are payment systems, and at them, obviously, there are no such opportunities and will not be. But they do the part well and worldwide.

One more interesting opportunity for development of the Russian universal card, and together with it and payment system of Sberbank – expansion of the interface of ATMs of bank. UEC will easily agree with the major shareholder. Since spring of 2013 via terminals of bank it is possible to register in acceptance in capital clinics.

Payment for use of the card

Service of bank electronic cards of the Visa or MasterCard systems is not free. Potentially use of UEC can also become paid though the probability of it is small, the vice president of Sberbank Alexey Popov said with March, 2013:

"Neither regions, nor federal authorized organization will levy a card service fee, but bank whose account is used for operation of the card, have the right to take money for service of the banking application".

According to him, the competition between banks will lead to the fact that introduction of a payment to them will not be profitable.

The first payments

The possibility of performing transactions in PRO100 system is provided in UEC with existence on the card of the digital payment application which will be activated only at the request of the applicant. It allows to make purchases using the card, to pay goods and services in shops, the state fees, taxes, etc. in a non-cash form or to withdraw cash.

As of January, 2013 acceptance of the UEC cards for payment is performed in more than 99 thousand trade organizations which are on service in Sberbank, and their quantity grows, declare in bank. For example, using UEC it is possible to pay off in shops:

• Retail Group X5 (Intersection, Roundabout, Pyaterochka),
• MegaFon cellular shops,
• MTS,
• in Euroset and
• Svyaznoy,
• Eldorado shops and
• MediaMarkt.

In process of connection to the UEK project of other credit institutions, the number of the outlets servicing PRO100 will only increase. To start acceptance of the UEC cards for payment in outlets expensive upgrade existing, as a rule, is not required or purchases of the new equipment, speak in Sberbank.

Issue of PRO100 banking application Sberbank and, since January, 2013, also now performs Uralsib Bank. Sberbank says that other participating banks of the project which there are more than 20 now are in a different stage of readiness for release and service of the card now. "Despite it, the existing issuers of the digital banking application of the UEK card are capable to cover completely needs of citizens at the time of start of the project", - add in Sberbank.

According to "UEC", about 13 thousand applications for obtaining the electronic map are submitted (for January, 2013). Upon obtaining the map all these citizens will be able to activate at once and uses the banking application. Until the end of the year in "UEC" expect to issue up to 3-4 million universal cards, and the potential audience of users of PRO100 makes about 100 million people.

Originally, according to 210-FZ, it was supposed that since January, 2014 UEC will be issued for all citizens of Russia who reached 14 years which did not write beforehand the declaration of abandonment of its receiving. However in February, 2013 in Kazan the minister of information technologies and communication Nikolai Nikiforov said that UEC will not become obligatory since the beginning of 2014. Later he specified that the obligation of issue of electronic identity certificates in Russia will remain, but it will be electronic passports for which issue the Federal Migration Service (FMS) will be responsible. New date (if it really changes) will be defined by the bill of FMS undergoing now discussion with other departments. The direct amendment in 210-FZ, according to him, will not be required. Also he emphasized that regions if desired can not wait for this date and set earlier terms of obligatory issue of universal cards.

It is clear, that at development of payment system of Sberbank using UEC, state support will be rendered to it. First of all in terms of carrying out all payments for benefit of the state. Federal law 162 made changes to the main regulating document about electronic state services (210-FZ). Since January 1, 2013 use of "the state information system about the state and municipal payments" (GIS GMP) became obligatory for administrators of income (the state structures rendering services so are called) and for operators of payments (these are banks) regarding informing on their carrying out.

Thus, already now all banks are obliged to transfer information on payments to GIS GMP. In plans of Federal Treasury for 2013 emergence on the portal of this system accumulating all such information, the interface for carrying out payments including with identification according to UEC. Having authorized according to the card, it will be possible to learn about the debts to the state and to extinguish them. The portal of the most federal authorized organization is integrated with GIS GMP too that will allow to register payments as well from it.

Reincarnation of an old system

Develops Sberbank PRO100 payment system since 2010. It replaced the Sberkart system created by bank in 1993 Sberkart was based on the closed standards, and therefore could function only in infrastructure of Sberbank and were not widely adopted. Such cards at the time of project completion, according to Sberbank, about 3.2 million pieces were produced.

Cards of PRO100 system, in turn, are based on the international bank standards, so — can use the same bank infrastructure, as foreign payment systems. At the same time, unlike the last, payments through PRO100 are made in the processing centers located in the territory of Russia and not taken out abroad.

Technology PRO100 uses the MasterCard M/Chip banking application based on the international standard EMV on cards. The same standard is used by Visa payment system. It regulates functionality of universal applications for debit and credit cards and also sets rules for the card and the terminal when implementing and service of this application.

2014: Resuscitation of PRO100

Sberbank expects an essential push in development of PRO100 system belonging to it. It was said[1]to Izvestia in March, 2014 by the vice president of Sberbank Alexey Popov.

— Due to the development of the UEK project by PRO100 payment system became to be interested many banks — he told. — Now, because of the fact that Visa and MasterCard were blocked by payments according to cards of a number of credit institutions our domestic payment system can receive a considerable push to development.

Representatives of Sberbank note that with the Russian payment system PRO100 the American sanctions on blocking of international payment systems will not concern holders of cards.

— Holders of the universal electronic cards of the Russian payment system PRO100 issued by JSC Sberbank of Russia, JSC Uralsib Bank, JSC AK BARS BANK and JSC Moscow Industrial Bank will continue to receive payment services in full regardless of sanctions of the USA against the Russian banks — said in Sberbank.

PRO100 system is included into the register of the payment systems registered by the Bank of Russia. The federal authorized organization JSC UEK acts as her operator, and settlement center is Sberbank. So far PRO100, despite lower rates, than at the international systems, did not enjoy popularity at private banks and outlets — competitors did not want to develop the project of the State Bank. Some media at the beginning of a year predicted even closing of a system. But now everything can change, experts are sure.

— While PRO100 system was just one of payment systems, to private banks there was no sense to emit maps with support of PRO100 and to contribute to its development — the analyst of Taxadmin.ru Expert center Maxim Ratnikov says. — But now because of real threat that any international card can be at any time blocked PRO100 can be announced nationwide and the government can be connected to its promotion.

Besides, the question of what payment system will be installed in the electronic passport of the citizen of the Russian Federation which issue the FMS planned since 2016 can be finally closed now, Ratnikov is sure.

— In 2013 in the government there were discussions about what banking application to install in the electronic passport, and many inclined that it is more logical to tie the passport to the international system — he says. — Now it is obvious that the choice for benefit of Visa and MasterCard will not be made definitely.

In the spring of 2014 14 Russian banks joined Universal Electronic Card payment system (PRO100), 4 banks issue universal electronic cards with PRO100 payment application. More than 250 thousand trade organizations of the most considerable retail chain stores accept for payment the UEC cards with PRO100 payment system. Besides, the UEC cards are accepted more than in 68 thousand self-service devices across all territory of the Russian Federation.

The Russian banks will be able to accelerate issue of payment cards based on PRO100 payment system

The federal authorized organization "UEK" prepares in March, 2014 changes in Rules of the Single payment and service system "Universal Electronic Card" (PRO100) thanks to which the Russian banks will be able to emit the bank cards based on payment system of UEC PRO100 in shorter terms without binding to the universal electronic card. Changes will be made to Rules in the nearest future.

According to requirements, established Federal by the law of 6/27/2011 No. 161-FZ "On the National Payment System" "UEK" it is registered by the Central bank of the Russian Federation as the operator of a payment system Universal Electronic Card. Since 2012 her operator is "UEC" − the federal authorized organization Universal Electronic Card Open joint stock company. Functions of settlement center in PS UEK are performed by Sberbank of Russia.

The Universal Electronic Card payment system (PRO100) includes 14 banks, 4 banks emit cards with payment PRO100 application are the main Russian emitting banks to which share more than 40% of all market of acquiring fall.

359,000 trade organizations accept for payment cards with this payment system. Cards with PRO100 banking application are accepted more than in 88,000 devices of self-service across all territory of the Russian Federation.

PRO100: gaining market

For August 21, 2014 PRO100 - a payment system with all necessary parameters for sustainable development. In its structure a ready rule set, rates, the modern software and chip technologies (including Russian), and, it is important - the Russian banks can issue payment cards of PRO100 system without binding to UEC.

The first step towards change of the status PRO100 is taken in May, 2014 together with card issue of "Russian National Commercial Bank" (RNCB). PRO100 – one of the first large projects in the territory of the new territorial subject of the Russian Federation.

"PRO100 payment system guarantees smooth operation of the cards issued on its basis, in all territory of Russia. There are all bases to assume that in the Crimea the PRO100 cards will become the most widespread payment instrument for natural persons, especially in anticipation of a tourist season soon", - Alexey Popov, the president of "UEC" noted.

At the beginning of summer of 2014 two more Crimean banks – "Black Sea Development Bank and Reconstruction" (ChBRR) and Sea joined issue of cards on the basis of PRO100. By the end of June in the Crimea 333 thousand payment cards with PRO100 are issued, the total number of the emitted cards on the basis of this payment system exceeded 800 thousand.

In the region of the Crimea PRO100 became systemically important payment system after separation from Ukraine. Until the end of 2014 on the peninsula project implementation "The universal electronic card" will begin. The authorized organization which will provide release, issue and service of universal electronic cards, defines the state unitary enterprise "Krymsvyaz". The program means creation in the region of the Uniform center of processing and billing (ETSPIB) on the basis of which centralized accounting of all transactions in the field of housing and communal services, transport, health care, education, including service of preferential categories of citizens is carried out. ETSPIB can also be the platform for creation of a regional information system of housing and public utilities within GIS of housing and public utilities.

At the beginning of June Bank Rossiya was connected to PRO100 payment system. Bank of Moscow signed from "UEC" the agreement on creation of host-to-host connection by means of which mutual acceptance and service of cards of bank in infrastructure of participating banks of PRO100 payment system is provided.

"Implementing the recommendations of the Central Bank about building of host-to-host connections, Bank of Moscow provides to the clients additional confidence when using of plastic cards in the territory of the Russian Federation. An interhost with [[The Universal Electronic Card (UEC)|"UEC"] also opens new opportunities for card business of Bank of Moscow, and business of our agent banks to which we render sponsor's services", - Maxim Patrin, the vice president of Bank of Moscow noted.

Bank of Moscow is going to issue for the employees cards on the basis of the Russian payment system PRO100, within the salary project. According to the management of bank it will allow to reduce risks for holders of cards of the international systems.

"Now employees get paid on cards of the international systems, now they will receive the additional card of the Russian payment system linked to the same account, just in case, - Vladimir Verkhoshinsky, the board member of Bank of Moscow told in media. - The release will be step-by-step: at first they will provide the staff of head office, then - regions. In total for these purposes 12 thousand cards - on number of employees of Bank of Moscow will be issued.

In July one of the leading banks of the South of Russia – Krayinvestbank joined PRO100 as the acquirer. In total in a system 17 Russian banks, including Sberbank work already. Cards on the basis of PRO100 are accepted in 350 thousand trade service organizations and 100 thousand devices of self-service in the territory of Russia. More than 50% of all market of the Russian acquiring are the share of a share of the banks working with PRO100.

At the beginning of August there was a milestone event – card issue of the Russian payment system PRO100 was started by the largest financial credit institution of the Russian state – Sberbank. The PRO100 cards are issued in categories "Personal" and "Salary" and are accepted in all acquiring network of Sberbank of Russia and also infrastructure of the banks participating in UEK Payment system. Issue of the card is performed at the time of the appeal to bank department that provides powerful benefits for the citizens who are making out to themselves cards of the Russian payment system.

The Standard cards PRO100 have standard functionality of services of Sberbank: "Mobile bank", "Sberbank Online", "Avtoplatezh", bonuses Thanks. Until the end of the year Sberbank is going to issue 1 million cards based on UEK payment system.

The PRO100 cards are accepted in all acquiring network of Sberbank of Russia and also in infrastructure of the banks participating in payment system note in the press service of "UEC". As reported CNews in "UEC", the beginning of issue of cards based on PRO100 by several more large Russian banks is planned in the nearest future.

PRO100 payment system will actively extend, including due to connection of new participating banks and also increases in number of the trade and service companies performing support of the PRO100 cards promise in "UEC". Among the expected events - the beginning of use in 2015 of the payment application of own (Russian) development of PS UEK/PRO100 and also expansion of a possibility of the card regarding Internet payments.

The growing influence of PRO100 also should provide wide infrastructure of acceptance and service of the payment application which is used in universal electronic cards.

"Development of the most payment system PRO100 will depend almost completely on activity of head structure – Sberbank, - Anton Soroko, the analyst of investment holding "Finam" believes. - While it is key systemically important bank institute in the Russian Federation, this payment system will develop quicker than analogs, in particular, at the expense of UEC. Especially, now shortly this market will be entered by National payment system so it will be rather difficult to private players to hold the market share".

According to the expert, as one of the key factors which are slowing down development of the universal electronic card as means of payment the essential gap in security with bank infrastructure acts – it is still noticeable even when comparing Moscow and million-plus cities, not to mention urban-type settlements. So far also financial literacy of the population of Russia leaves much to be desired.

According to the Central Bank, for April 1, 2014 in Russia more than 219 million plastic cards, including about 189 million settlement are emitted (+13.6 million in a year). Analysts drop a little hint of doubt that PRO100 will be able to take quite noticeable place in this market.

PRO100 payment system received the status of national significant

The Central bank of the Russian Federation recognized in November, 2014 Universal Electronic Card payment system (PRO100) national significant.

The status of national significant will allow payment system to continue work without placement of the security deposit in the Bank of Russia.

PRO100 meets the main requirements of the Central bank: control by residents of the Russian Federation, reliable data protection, the Russian software tools, observance of requirements to the legal base of use of the main own and licensed a component and tools of payment system.

The payment system of UEC PRO100 includes the main Russian emitting banks to which share more than 50% of all acquiring in Russia fall. The PRO100 cards are accepted by more than 100 thousand devices of cash disbursement across all territory of the Russian Federation, more than 20,000 departments and operational offices, 500 thousand trade service organizations. As of October, 2014 more than 1.2 million PRO100 cards are emitted.

2015: Sberbank will leave the PRO100 project

On June 25, 2015 it became known of a probable exit of Sberbank from the PRO100 project^[1].

PRO100, 2014 card

Maxim Poletayev, the first deputy chairman of board of Sberbank, reported the Kommersant edition: "It is obvious that the situation significantly changed, and we do not see perspectives of development of the project. The project lost relevance against the background of creation in Russia of NSCP at the Central Bank which at the end of this year will begin release of the national World card. Issue and acceptance of World it will be obligatory for all large merchant acquirers that does inexpedient development of own system. We consider several scenarios of an exit from PRO100 — positive or negative".

Parts at the same time are not specified. For June, 2015 more than 2 million PRO100 cards are issued.

Originally Sberbank was going to extend PRO100 within obligatory issue to all citizens of issue of cards (UECs) with PRO100 payment application. However, then UEC is decided to be issued only on a voluntary basis. Revival of interest in the project was promoted by imposition of sanctions in March, 2014 when the banks which got under them SMP Bank and Russia were disconnected Visa and MasterCard. They could ensure functioning of the cards, having connected to UEC. Further the banks which fell under sanctions including in the Crimea, began to issue the PRO100 cards as exclusively bank as access to card issue of other payment systems for them was closed. In August, 2014 the PRO100 project tried to support and Sberbank, announced the beginning of their issue.

Start of the Central Bank of national payment system deprived of sense further promotion of PRO100. According to market participants to implement the positive scenario — sale of PRO100, it is actually impossible.

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