Increase in the number of immigrants, industrial growth, and growing mobile application based payments were the key factors driving growth in the remittance and bill payments market in Russia.
Russia is one of the most preferred migrant destinations in the world. In 2016 it was the 3td largest country in the world in the list of remittance sending countries. International migration to Russia is very high because of which the market is dominated by outflow of remittance funds. The migrants migrate to Russia in search of better job opportunities with high salaries and an improved standard of living. The migrants in Russia belong to both CIS as well as Non-CIS countries. The outflow to CIS countries is dominated by Uzbekistan and the outflow to non-CIS is dominated by Switzerland. The inflow of funds is dominated by the Kazakhstan owing to the large base of Kazakhstani students in Russia. The country has a large portion of population living in rural areas. People in search of better job opportunities and higher education migrate to developed cities such as Moscow, Saint Petersburg and Novosibirsk results in substantial rise domestic remittance in the country. The mushrooming migrant population in cities has also led to an increase in the households which resulted to an overall increase in use of groceries, utilities such as electricity and water. This increase has sustained the healthy growth of the bill payment market. In the past few years, the Russian currency has weakened against USD and the fall in oil prices has disturbed the growth of the remittance industry in Russia. The existence of a large number of unlicensed MTOs and a large percentage of unbanked population are some of the major concerns for the remittance and bill payment market.
The bill payments market in Russia includes the payments made for all the groceries, utilities consumed in the country by both immigrants and citizens in the country. The market grew at a CAGR of ~% during 2011-2016. The bill payment transaction volume has grown on the back of rising utility consumption and growing number of immigrants. Furthermore, rising consumption of electricity and water has led the government to cut the subsidies on these utilities for the citizens and to raise its cost for immigrants.
The report titled “Russia Remittance and Bill Payments Market by Inbound and Outbound International Remittance, By Mode of Transfer (Cash or Electronic Transfers), By Channel (Bank and Non-Bank) – Outlook to 2021” by Ken Research suggested a positive CAGR in terms of transaction volume in the remittance and bill payments market for the next 5 years till 2021.
Key Topics Covered in the Report:
Money Transfer Channel in Russia
Russia Vtb Bank Remittance Transactions
Money Transfer Data Russia
Internal Migration in Russia
Money Transfer Within Russia
Inmigrant Data Russia
E-Wallet Market in Russia
For more information on the market research report please refer to the below link:
Related Reports by Ken Research
Ankur Gupta, Head Marketing & Communications