Russia’s first National Payment Council has been created
18 January 2012, Moscow – Joint press conference of the Golden Crown, MasterCard and Visa payment systems took place at Ritz Carlton Hotel during which the foundation of the National Payment Council Association was announced.
The Association’s key aim is to support orderly and accelerated development of Russian electronic payment industry and enhance the economic and social role of payment industry in Russia. The Association will assist in the dialog between state and society in discussing the current problems faced by the industry and improve Russia’s national payment system.
Such a large-scale aim can be achieved only with joint effort of the members of all industry segments: operators of payment systems, credit organizations, mobile operators etc. It will improve the efficiency of work on creation of industry standards, promotion of new payment technologies and instruments for their application sphere. The National Payment Council must become the organization that will promote implementation and mass use of innovations, support development of fair competition and improve the quality of payment services to Russian consumers.
The Association will have a range of projections, such as:
- Participation in improvement of the regulatory and legal framework. While the regulatory acts to the Law “On the National Payment System” are developed, the Payment Council will provide necessary expert support in this direction to all parties interested.
- Analysis and research of quantitative and qualitative characteristics of the national payment system. The Council will be one of the most authoritative sources of information about the current state of the market, trends and peculiarities of its development in comparison to the leading economies of the world countries.
- Contribution to appearance of new modern payment products for Russian consumers. The Council aims at supporting appearance of more convenient and innovative solutions in Russia’s payment area in respect of the local laws and world tendencies.
“The Payment System was founded by leading players and competitors of Russian cashless payment market, and this event has already become unique and it will go down to history,” said Ilya Ryabiy, Head of Russian MasterCard. “Russia now has a floor for a brand new dialog between all parties interested in the payment sphere development, as in this dialog the Council will represent the coordinated position of its participants that are also leading industrial experts.”
Unlike traditional banking associations, the National Payment Council will unite all payment industry players: banks, payment system operators, both cards and money transfer systems, and other, operators of payment infrastructure services (clearing and operation centers), and members of payment systems.
“We express the common position of leading companies that are active in different segments of retail payment market and that render services using different payment instruments. The industry members find it necessary to jointly improve the contribution of cashless payment industry to solving tasks that Russia faces today: increase of economics transparency, decrease of shadow market, modernization of the banking sector, introduction of innovations, coverage of wider population with financial services,” said Steven Parker, Director General of Visa in Russia, the CIS and countries of Southeast Europe.
In stating the nearest plans of the National Payment Council, Chief Executive Alexey Maslov remarked that “development of subordinate acts and regulatory documents that shall appear within the framework of realization of the requirements of 161-FZ is very important for the industry now. In this connection the expert activity of the Council, cooperation and dialog with the Government of the Russian Federation, the Bank of Russia and other parties interested will be chiefly directed to supporting this process.”
Establishment of the National Payment Council in Russia that shall represent the interests of the whole payment industry is a new stage in market development. Similar organizations are active in other countries.
For example, in the US there is the Electronic Payments Coalition that consists of over 60 members and includes card providers, banks and companies specialized in rendering financial services. The aims of this coalition are as follows: development of competition, provision of maximum convenient use of electronic payment system, cooperation with government bodies, consumers and other.
There is also the Payment Council in Great Britain. It is a voluntary organization whose aim is to determine the strategy of payment development through cooperation with government bodies, and public consultation of market members.
Reference about the National Payment System
The National Payment System Association unites members of Russian payment industry and supports development of electronic payment market, introduction of innovations, and provision of high quality and security of services as well as enhancement of the economic and social role of payment industry in Russia. Its founders are the Golden Crown, MasterCard and Visa payment systems.