Rostelecom is developing its own payment service, two unspecified sources within the telecom operator have told the Russian business daily Vedomosti. Rostelecom Payment System, an interim name for the future product, is expected to start operation in the fourth quarter of this year.
Andrey Polyakov, an official spokesman for the operator, confirmed the news, saying that the telecom giant is seeking inroads into the country’s financial service market; putting together its proprietary payment system is a part of what Rostelecom wants to accomplish to achieve its goal. He declined to disclose details.
Under the 2011 law on electronic payments Rostelecom is required to obtain a license to legally operate as a non-banking credit entity.
Speaking on condition of anonymity, the two Rostelecom employees said that the future service is expected to interact more closely with partner banks than the existing e-wallets, enabling its customers to benefit from popular banking products online – which they did not specify, however. The telecom operator reportedly hopes the new project will generate “a few billion rubles a year” (around $100 million or more), ultimately bringing Rostelecom a 15% market share within several years.
In the endeavor, Rostelecom is counting on its own client base as the main gold mine. The future service will be automatically tied to customers’ telecom accounts, the sources said, adding that any client, existing or new, will be able to open an e-wallet.
However, according to Viktor Dostov, the president of Russia’s Electronic Money Association, even with a fortunate conjuncture of circumstances Rostelecom is unlikely to get more than 10% in a few years.
Today, Yandex.Money, WebMoney and Qiwi dominate the Russian e-currency market, as described in a recent study by East-West Digital News. Among the other e-currency operators is PayPal, which was absent from the domestic market until this past September.