Press releases | Archive 2008
RBC acquires Rupay e-payment system
Moscow, April 15, 2008 - OAO RBC Information Systems (MICEX, RTS: RBCI) announces the acquisition of one of Russia’s leading e-payment systems, Rupay, for the development of the universal system of online financial transactions using the infrastructure of RBK Bank. RBC acquired a 20% stake in the Rupay payment system with a right to increase the stake to 51% within three years under an option agreement. Pursuant to the agreement, the terms of the deal cannot be disclosed.
Acquisition of Rupay enabled RBC to make a fast entry to a dynamically growing e-payment market. The new version of the Rupay payment system will operate using the resources of RBK Bank OJSC, acquired in late 2007. Under the umbrella brand of RBK Money the system will offer its clients a whole new range of innovative payment services based on a combination of e-payments and banking services.
The Rupay Internet payment service was launched in 2002 and was one of the first payment systems in Russia to offer an e-commerce money transfer solution. Rupay offers its services to over 250,000 Russian Internet users and 6,000 online shops. According to Cnews Analytics, the company handles around 5% of Russia’s total payments via the Internet. Rupay users can perform a wide range of quick payment transactions online using one payment gateway, the Rupay electronic wallet. This includes payments for utility bills, Internet access, IP telephony, cable TV, mobile, international and long-distance communication as well as for goods and services purchased from Russian Internet shops and other online services.
“By acquiring Rupay, we saved a lot of time needed for the development of a similar system, since Rupay boasts an advanced processing platform and an impressive client base, as well as sustainable partnerships with online shops, banks and payment outlets. Therefore, acquisition of a system serving a growing online shopping market was a logical and expedient move towards the creation of a universal and convenient tool for online financial transactions. Rupay will become the first Russian payment system to bring together electronic payments, currently enjoying high demand on the Internet shopping market, and innovative banking products. This will extend Rupay services beyond the Internet, making it equally easy for its clients to use them both online and offline,” said RBC Chairman and CEO German Kaplun.
In 2007, the turnover of Russia’s top five e-pay systems controlling a total of over 85% of the market increased 130% and reached $16bn. The compound annual growth rate (CAGR) of the Russian market of payment processing solutions amounted to 119% in the past three years. Positive market dynamics, as well as continued growth in the number of Russian Internet users give the sector investment and commercial appeal.
Internet payments constitute one of the most quickly developing sectors of the world e-payment market, and Internet payments integrated with banking payment solutions are gaining the widest popularity. For instance, the PayPal electronic payment system, which has over 164mln users, has announced that the payments it processed in the fourth quarter of 2007 reached a record high of $14bn. According to forecasts of Javelin Strategy and Research, by 2012 online transactions will increase 2.36 times from $150.4bn to $355.2bn.