National Gorod System: 2011 Results
The National Gorod System (NGS) that provides the whole range of services on accrual, collection and processing of public payments has summed up the results of its activity in 2011. Today payments for 24,000 services of various providers are collected using the Gorod System technology. The System turnover has grown by 34% as compared to the previous year. 150 new banks have joined the System during the year, and the total network of payment collection points has grown by one third and now it comprises over 30,000 points in 79 regions of Russia.
As one of Russia’s major consolidators in regular payment collection market, the National Gorod System unites service providers and payment collection agents. The System development is connected with simultaneous growth of the number of service providers and extension of service payment infrastructure. In 2011 the National Gorod System showed active growth in these two fields.
Increased Number of Service Providers
Today payments for 24,000 services of various providers are collected using the Gorod System technology. 9,000 services are available for payment in the national infrastructure of the Gorod System, 4,000 of which appeared in 2011. The rest 15,000 are collected by regional System operators in 12 regions of Russia. Traditionally, utility services make a significant part of new services in the System. Besides, the Gorod System now supports crediting of the most popular e-wallets: WebMoney, Yandex.Money, RBK Money, Wallet One, Moneta.Ru, Wellpay and IntellectMoney, and paying for orders at the biggest network companies – Oriflame, AVON, Faberlic, MaryKay, Florange.
The joint project of the National Gorod System with Rosgosstrakh Bank OJSC was actively developed concerning acceptance of insurance payments of Rosgosstrakh LLC agents in the network of cash departments of the NGS partner banks.
Extension of Service Payment Infrastructure
In 2011 over 150 new payment collection agents joined the Gorod System. The System services were introduced in Gazprombank OJSC ATM network, cash departments of NRBank JSCB OJSC, PromServiceBank LLC, Stroycredit CB OJSC, Rosenergobank CB CJSC, and in cash departments of three territory banks of MDM Bank OJSC. Internet banks of Bank Inteza CJSC, Bank24.ru OJSC and Stroycreditbank CB OJSC also joined the System.
Cooperation of the Gorod System and Svyaznoy Bank at which customers pay for NGS partners’ services using Internet banking develops successfully. During the whole year Svyaznoy Bank has shown stable growth of payments and turnovers, in the average by 20% per month. Over 740,000 payments were effected using Internet bank of Svyaznoy Bank in December 2011.
In July 2011 the Gorod System became partner of MTS Easy Payment service using which subscribers of all Russian mobile operators and cardholders of any Russian bank can pay for any service from a mobile phone or MTS website. Linking of the National Gorod System to Easy Payment service platform technically supported by Bank of Moscow OJSC allowed increasing the range of services available for payment using this service in regions. Also in 2011 the Gorod System continued its cooperation with Kukukuza project of Euroset company, the biggest mobile retailer, within the framework of which all Kukuruza cardholders can pay for the services of the Gorod System providers in the card payment Internet account.
The Gorod System continues developing cooperation with Russia’s biggest payment collectors. In 2011 the Belgorod branch of Sberbank of Russia started accepting utility payments using the Gorod System technology. Thus at present the National Gorod System interacts with 10 territorial banks of Sberbank of Russia. Besides, service payment with the Gorod System has been implemented in the Regional Department of the Federal Postal Service of the Republic of Kalmykia, and now the cooperation of the Gorod System with Russian Post FSUE includes 16 regions of Russia. Besides, the NGS cooperation with its strategic partner in the Novosibirsk Region, Telecomservice LLC (terminal stations of Rostelecom OJSC), was extended to two new regions – Kemerovo Region and Krasnoyarsk Krai.
Payment Accrual Arrangement
In 2011 the Gorod utility payment accrual system started operation in three new cities - Belgorod, Vladivostok and Birobidzhan. Thus the System provides utility payment accrual in 12 regions of Russia.
Not only does the Gorod accrual system have experience in solving computerization and unification problems in the work of city utilities infrastructure and quick accruing of utility payments, but also it meets the latest payment accrual requirements in utility services providing automatic breakdown of payments by resource supplying and housing stock servicing organizations.
Increase of the Attractiveness of Remote Banking Services
Offering remote service payments via the Internet, mobile phone or ATM, for many years the National Gorod System has been engaged in improvement of the financial culture and increase of the Russian people’s awareness of innovative payment technologies. Nevertheless, market research shows that remote payment services are mostly used for payment for communication services and Internet access. The share of remote utility payments stays very low. The main reasons for that are not only the unavailability of these means of payment but also the lack of knowledge about this option. The Gorod System actively promotes the tools for online service payments, and in May 2011 it started implementing the Internet project “Queue Encyclopedia” – www.ochered.info, fully dedicated to queues and ways to avoid them.
In a funny manner the ochered.info project shows the history of queues, tells about the most remarkable queues at different times in different places and gives advice how to occupy oneself when in a queue. But the most important point on www.ochered.info is what you can do to avoid wasting time in queues.
Public Charity program of the National Gorod System was widely developed in 2011. The program allows making charity payments in favor of acknowledged national charity foundations – “Here and Now” engaged in orphans support, and “Children’s Hearts” supporting children with congenital heart disorder.
“The National Gorod System is the intellectual link between the payer and service providers. Our task is to simplify and quicken their communication. We develop payment collection via all channels: cash departments, terminals, ATMs, Internet payment services and mobile payment services. And of course we will pay special attention to further development of innovative online instant payment tools. For example, in 2012 we plan to implement service payments on the NGS website via cards of Visa and MasterCard international payment systems. For service providers, managing companies and all utility entities we have a new product called Accrual System,” comments Petr Mazanov, Director of the National Gorod System, on the central development trends.