Kirill Chernovol: “The growth of non-cash payments in Russia is a normal trend that calls for quality regulation”

Kirill Chernovol: “The growth of non-cash payments in Russia is a normal trend that calls for quality regulation”
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Kirill Chernovol, Researcher at the Gaidar Institute’s International Best Practices Analysis Department, analyzed the trend of non-cash payments growth in Russia noted by the Central Bank in a commentary for Rossiyskaya Gazeta. The expert emphasized that this process is a normal worldwide trend but requires close attention to the security and stability of the digital infrastructure.

“The growth of cashless money itself is neither good nor bad. It is a reflection of how reality has changed. How safe this process will depend primarily on the quality of regulation.

The growth in the share of non-cash payments is a normal worldwide trend. In Russia in 2019, the share of non-cash payments in retail turnover totaled 64.7%, and by the end of 2024 it will be 85.8%. By the end of 2023, the country is in the top 7 among the G20 countries in terms of the level of cashless payment in retail, second only to China, Australia, the US, Canada, the UK and South Korea.

This is happening, firstly, because of the development of technology. The Faster Payment System (FPS), mass distribution of contactless payment via NFC, QR codes, and now biometrics — all this makes payment easier and faster. From a business point of view, the number of POS terminals in the country grew by almost 10% over the year, reaching 4.9 mn.

Secondly, regulatory incentives, such as reduced acquiring rates for payment via FPS, mandatory acceptance of bank cards at retail outlets, cashback programs and incentives for small businesses, increase the convenience of cashless payment.

From an economic and fiscal point of view, this is a plus. Transparent payments mean a decrease in the shadow economy and an increase in tax collection. Entrepreneurs save on collection and get access to important data on customer behavior.

At the same time, we should not forget that cashless payments require uninterrupted operation of the digital infrastructure. A single system failure can result in retail paralysis. In addition, the protection of personal data, especially biometric data, is becoming increasingly important,” said Kirill Chernovol

Wednesday, 18.06.2025