MTS INTRODUCES A NEW PAYMENT SERVICE
Monday, August 01, 2016
MTS will launch a new, easy-to-use, payment system, allowing customers to leave their cash and bank cards at home. MTS subscribers will be able to make payments from their mobile accounts in a variety of stores or cafés. The system requires customers to provide their mobile number to the cashier and the transaction will then be confirmed by SMS. The designated stores will have to use special MTS POS-terminals, although MTS will gradually integrate this payment service into traditional POS-terminals that are in current use.
MTS will earn a commission from every transaction while increasing its share of loyal customers, given that the churn rate is 25% lower among customers using both mobile and financial services.
The service will be introduced in Moscow and, by the end of the year, in Ekaterinburg.
In 2015, the mobile commerce turnover from MTS mobile accounts increased to RUB 14.6 bln from RUB 12.8 bln in 2014, while the number of users increased from 2.6 mln in 2014 to 3.1 mln in 2015.