Steadily growing investments in fintech technologies on a global scale confirm a strong potential for this industry and further expansion prospects in the coming years. In Russia, fintech transaction value amounted to over 226 million U.S. dollars during 2020, with an estimated users volume expected to exceed 123 million by 2025.
Online paymentsDigital payments and personal finances are the two major segments of the fintech industry in Russia, constituting roughly 90 and 9 percent of the market share, respectively. In 2020, the total value of electronic payment orders was over 650 trillion Russian rubles, while the value of bank card payments amounted to about 32 trillion Russian rubles. Bank cards were the second most employed mode of payment after cash in the country as of 2019, among which MasterCard and Visa were the dominant brands.
NeobankingNeobanks are fully digitalized financial institutions that lack physical branch networks and operate with products related to financial technologies. Thus, the rise of the neobanking market in Russia's contemporary financial industry was therefore closely related to the development of fintech. Over the recent years, the market has been growing at a steady pace and it is set to record over a billion U.S. dollars in revenues by 2025.
Tinkoff Bank which is one of the largest among such institutions reported over 44 billion Russian rubles in net profits for the 2020 financial year. The Russian payments system provider Qiwi Group, whose largest business segment was money remittance, accounted for about 2.5 billion Russian rubles in net profits in 2020.