Russia puts forth Apple Pay substitute
Date
10/22/2024 9:01:01 AM
(MENAFN) In a significant development for its financial technology sector, Russia's National Payment Card System (NSPK) has announced the launch of a domestic service designed to replace popular mobile payment platforms like Apple Pay and google Pay. This new solution was unveiled by NSPK's General Director Dmitry Dubinin during the Finnopolis financial Technology forum held in Sochi.
The innovative service will enable users of both Android and IOS smartphones to conduct contactless payments using Bluetooth technology. Dubinin highlighted that around 20 Russian banks have already expressed interest in adopting this new payment method, which operates in conjunction with the Mir payment system—Russia’s equivalent to global card networks such as Visa and Mastercard. The Mir system has been instrumental in facilitating non-cash payments throughout the country, especially since the suspension of Western payment systems.
“Our solution provides contactless payment through a short-range technology that interacts with payment terminals,” Dubinin explained. He pointed out that this method is particularly crucial for users of iPhones, as traditional payment options have become unavailable in light of recent sanctions.
The shift away from Apple Pay and Google Pay occurred in 2022 when Western countries imposed sanctions related to the Ukraine conflict, leading to the suspension of operations by Visa and Mastercard in Russia. Consequently, Russian-issued credit and debit cards were blocked from use abroad and for international online transactions.
Currently, the NSPK has only presented a prototype of its new service, which is named ‘Volna’ (meaning "Wave"). According to the NSPK, this technology is designed to be easily integrated into existing mobile banking applications, allowing users to make payments seamlessly with their smartphones.
The Volna service will support both online and offline transactions; however, it will necessitate the deployment of new payment terminals that are compatible with this emerging technology. This initiative marks a crucial step for Russia as it seeks to bolster its domestic financial infrastructure in the face of ongoing geopolitical challenges and to enhance the convenience of cashless transactions for its citizens.
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