International Remittance Market in Russia is segmented on the basis inbound outbound remittance, resident and non-resident individuals, channel of transfer, mode of transfer and remittance corridors. International remittance in Russia is largely dominated by the remittance outflow to other counties. Outflow of remittance from other countries has contributed a share of ~% in the overall revenues of the industry
In terms of remittance outflow, the market is dominated by banking channels that account for a share of ~% in 2016. Cash transfers as a mode of transfer dominate the market with a share of ~% in 2016 in the remittance outflow. Russia-Switzerland represents the major international remittance corridor for the outflow, while the Switzerland-Russia is the major corridor for the inflow of remittance in Russia. In terms of flow corridors the market is dominated by the remittance flows to the Non-CIS countries with a share of ~% in the year 2016.
Domestic Remittance and Bill Payments Market
Domestic Remittance Market in Russia is segmented on the basis of flow corridors and remittance channel. Internal migration is the key driver for domestic remittance in the country. The main reasons for people to migrate from rural areas are better paying jobs, better standards of living and higher education. In the year 2016 Central Russian Federal District has dominated the regional remittance market. As of 2016, the market is dominated by non-bank institutions that include payment cards, Russian Post, e-wallets / mobile money and money transfer operators with a share of ~% followed by the banking channels. Bill payments market is dominated by the grocery bills that held a share of ~% in 2016 followed by utility bills, fuel bills, mobile recharges and broadband and DTH payments.
Competitive Landscape
International remittance market is a highly competitive market. In Russia international remittances are carried out through Banks and MTOs. Non-Bank including MTOS and exchange houses have the major share in the transfer services. There are five major MTOs that hold more than ~% share in the market. These MTOs are competing on the basis of the transaction fees charged, volume of transaction, number of branches, services offered and others. The MTOs in the country include KoronaPay, Western Union, MoneyGram, UniStream and others. Domestic remittance in the country is also dominated by these non-bank institutions as a mode of preferred channel. ~% of the domestic remittance market is shared by a number of non-bank financial organizations and companies. These organizations compete with each other on the basis of penetration in rural areas, interconnectivity, fee charged, security of transaction made and other aspects.
Future Potential of Russia Remittance and Bill Payments Market