Electronic money in Russia: a comparison of the financial success of market players
Electronic money systems do a good job of accounting for the money of their users.
Let's try to change places and count the money in the pocket of the payment systems themselves.
Electronic money is money that is used only on the Internet. This money cannot be touched, it does not have a physical form, but is located on electronic media. With their help, you can pay for goods in online stores, mobile communications and utilities, make transfers to other users, exchange them for other forms of cash and much more.
The electronic money market is gaining more and more popularity in Russia every year. The market is regulated by the Central Bank of Russia, and the basic law to which all participants in this market obey is “On the National Payment System” N 161-ФЗ dated June 27, 2011. It’s
worth mentioning right away that multiple illegal Internet resources will not be considered in the article, loudly calling themselves payment systems, but actually violating the law of the country (performing illegal banking operations), as well as not giving even minimal guarantees of safety of funds to their customers.
Overview of market participants
At the time of writing, the Russian electronic money market is represented by the following national companies registered with the Bank of Russia as payment NPOs (Payment Non-Bank Credit Organization):
| PNCO Name | The brand | Date of | Website | Area of activity |
|---|---|---|---|---|
| Coin.ru | Coin.ru | 06/04/2012 | moneta.ru | For instant secure online payments. |
| Electronic payment service | RBK Money | 06/27/2012 | A platform for carrying out transfers in various ways, as well as payment in online stores. | |
| Money. Mail.ru | 08/02/2012 | money.mail.ru | Payments in cash and bank cards, instant money transfers, payment of receipts | |
| Yandex money | 08/02/2012 | Payment for services, transfers and replenishment, acceptance of payments on sites. Simplicity and convenience of payment technologies. | ||
| Cash desk | Wallet One | 10/08/2012 | walletone.com | Multi-currency wallet, transfers by e-mail and phone, many points of replenishment and withdrawal of funds around the world |
| Delta Kay | Delta Kay | 12/18/2012 | deltakey.ru | Money transfers in terminals and ATMs, payment acceptance, personal and corporate wallets. |
| Premium | Telepay | 02/21/2013 | telepayural.ru | Large terminal network of the city of Yekaterinburg, payment acceptance |
| PayPal RU | Paypal | 03/13/2013 | paypal.ru | Payment to the address of online stores (including eBay). In fact - the Russian representation of the American PayPal |
| PayU | Payu | 04/08/2013 | payu.ru | The integrator of various payment methods in online stores (international card payment systems and Russian electronic money) |
| MOBI.Money | MOBI.Money | 10/22/2013 | mobi-money.ru | Mobile payment system - payment for purchases on the Internet from a card or phone account. |
For clarity, the brands of credit organizations, the websites of these companies and the direction of activity (according to information from these sites) are also given.
Below, for ease of perception of information, the brand will be used instead of the name of the credit organization.
The peak of the emergence of national companies in the Russian electronic money market was in 2012. During the year, six payment NPOs appeared. Companies registered in 2012 will participate in the analysis of the electronic money market, since analytics will be carried out based on the results of work in 2013, and it would be incorrect to compare companies that worked all year with those that worked only part of the year.
2013 financial results
Compare our participants in terms of key performance indicators for 2013 (according to the financial statements submitted to the Central Bank of the Russian Federation).
| Balance currency, thousand rubles | 146 951 | 477 906 | 207 411 | 1 878 248 | 32 411 | 95,500 |
| % | 5.18% | 16.84% | 7.31% | 66.17% | 1.14% | 3.36% |
| Fee and commission income, thousand rubles | 277,875 | 377,501 | 136,485 | 1,043,557 | 10 420 | 44,805 |
| % | 14.70% | 19.97% | 7.22% | 55.20% | 0.55% | 2.37% |
| Commission expenses, thousand rubles | 163 020 | 366 015 | 75 272 | 304,250 | 2,410 | 18 022 |
| % | 17.55% | 39.40% | 8.10% | 32.75% | 0.26% | 1.94% |
| Net profit, thousand rubles | 3,234 | 1,457 | 17,527 | 97 604 | 1 874 | 5,262 |
| % | 2.55% | 1.15% | 13.81% | 76.88% | 1.48% | 4.14% |
| Equity, thousand rubles (form 0409808) | 21 988 | 19 116 | 35 084 | 115 592 | 20,761 | 20 610 |
| Bank capital adequacy ratio (H1.1) | 10 p.m. | 4.6 | 24.90 | 6.8 | 197.00 | 70.00 |
| Liquidity ratio (N15.1) | 146.60 | 112.1 | 145.20 | 106.60 | 305.40 | 253.30 |
| Profitability | 1,59 | 0.30 | 8.45 | 5.19 | 5.78 | 5.5 |
Alignment of forces
Yandex.Money is the most popular online payment service. The Yandex brand has been widely known in Russia for many years, which largely predetermined the fate of these electronic money. Commission income Yandex.Money exceeded 1 billion rubles, which indicates a large number of users of this system.
RBK Money, Money @ Mail.Ru and Moneta.ru are also popular among the population. Their market share is 16.84%, 7.31% and 5.18%, respectively. At the same time, RBK Money has very high commission expenses, which entails a not high level of net profit. The capital adequacy and liquidity ratios of RBK Money also slightly exceed their minimum values.
At the end of 2012, NPO “One Cashier” (brand “Wallet One”) and NPO “Delta Kay” were registered. The market share of Delta Kay by the end of 2013 amounted to 2.37%, which is a good result for the newly created company. Its net profit as of 01.01.2014 amounted to more than 5 million, which indicates the effectiveness of its activities. It is worth noting the high value of the mandatory ratios N1.1 and H15.1 (capital adequacy ratio and liquidity ratio), which characterizes NPOs as a stable and reliable company. By the end of 2013, the performance indicators of the Single Cashier NPO are not as optimistic as the Delta Kay NPO. Its market share slightly exceeded 0.5%.
The net profit indicators of most companies are similar to the value of their market share in terms of the balance sheet currency. An exception is, as already noted, RBK Money, which, with 17% of the market share in the balance sheet currency, accounts for only 1% of the profit.
The following is a comparison of compliance with liquidity and capital adequacy ratios by credit institutions. It is worth noting that at all credit organizations these indicators exceed the minimum standards established by the Central Bank of Russia.
Profitability:
Dynamics - the first half of 2014
Consider the activity of these NGOs in dynamics. The table below shows the main indicators for the 1st half of 2014.
| Balance currency, thousand rubles | 154,869 | 255,808 | 95,689 | 691 850 | 40,095 | 110 944 |
| % | 11.48% | 18.96% | 7.09% | 51.28% | 2.97% | 8.22% |
| Fee and commission income, thousand rubles | 100 044 | 244 002 | 77 594 | 230 535 | 27,099 | 48,699 |
| % | 13.74% | 33.52% | 10.66% | 31.67% | 3.72% | 6.69% |
| Net profit, thousand rubles | 1 462 | 6 530 | -13,071 | 87,285 | 6 037 | 29,708 |
| % | 1.24% | 5.54% | -11.08% | 74.00% | 5.12% | 25.19% |
| Equity (Basel III) | 23,412 | 25,825 | 24,174 | 135,486 | 26,434 | 50 559 |
| Bank capital adequacy ratio (H1.1) | 23.94 | 7.73 | 32.82 | 7.81 | 64.65 | 82.38 |
| Liquidity ratio (N15.1) | 147.97 | 117.84 | 183.18 | 107.64 | 157.15 | 415.03 |
| Profitability | 0.94 | 2,55 | -13.66 | 12.62 | 15.06 | 26.78 |
Change of balance of power
You can see how the alignment of forces has changed in 2014. In the first two places Yandex.Money and RBKMoney continue to be confident. Money @ Mail.Ru fell by 5th place in terms of market share, while Delta Kay went up by 4 (its market share was 8.22%, and in absolute terms more than for the entire 2013), and Moneta.Ru - to 3rd place. It should also be noted a slight decline in the share of revenue of Yandex.Money NPOs, but this did not affect its leadership position.
Net profit
The main income that an NPO receives is commission income from all transactions conducted. The higher the level of commission income, the more transactions the company conducted during the reporting period, and accordingly - the higher the demand for its services.
If we consider companies by the level of net profit for the first half of 2014, then the first three places were distributed as follows:
1. Yandex.Money - 87 million rubles.
2. Delta Kay - 30 million rubles.
3. RBK Money - 7 million rubles.
In this troika, it is worth noting Delta Kay, which in such a short period of time got into the first triplet along with such a giant as Yandex.Money, significantly outperforming RBKMoney in this indicator.
Profitability
One of the main indicators of the effectiveness of the organization has always been profitability. In this case, we consider the profitability of commission income, i.e. NPO profitability for the first half of 2014.
The Chart shows that for the first half of 2014 The most effective was the Delta Kay NPO, whose profitability was 26.78%. Also, a high level of profitability should be noted with the Yandex.Money NPO and the United Cashier Non-Profit Organization.
Money @ Mail.Ru in the first half of 2014 had a loss. This is all the more unexpected since the results of 2013 it was this NPO that had the highest rate of profitability.
The low profitability of Moneta.ru and RBK Money is associated with a small net profit amid a rather high level of commission expenses.
Summarizing
The growth of the electronic cash market is higher and higher every year, and according to forecasts for the next few years, this dynamics will only intensify. It should be noted that, along with giants such as Yandex.Money, younger companies are confidently entering the market, whose high growth rates help ensure healthy competition in the electronic money market.
The article was prepared on the basis of cbr.ru and published in open sources of financial statements.