Ingenico's e-commerce gamble in Russia pays off
When launching an e-commerce service in Russia more than a year ago, Ingenico Group knew it was entering a complex financial and payments market, as well as one with domestic e-commerce ecosystems unique to each region.
There was no guarantee Ingenico was going to find success with its Russian Payments Solution to help the country's consumers access products and services outside of the country using local acquiring and compliance to local payment methods.
After the service's launch in mid-2018, Ingenico says Russian Payments Solution is now its fastest growing payments offering, processing more than 100 million payments from Russian consumers buying overseas to the tune of nearly $1 billion (U.S.), while improving approval rates for e-commerce customers by 20%.
As much as 10% of Ingenico's merchant customer base has onboarded with Russian Payments Solution, making digital goods, retail products, travel and other services available to consumers.
"While Russian e-commerce is rapidly growing, we can support a business to grow and scale further," Mike Goodenough, general manager for Europe, Middle East and Asia at Ingenico ePayments, said in a Wednesday press release.
Ingenico says its work with acquiring banks Sberbank and Alfa Bank in Russia have helped boost the transaction approval rates to the benefit of online businesses receiving more sales, lower shopping cart abandonment and more returning customers.
Russian Payments Solution offers payments through Mir, the Russian domestic card scheme, as well as Russian e-commerce wallets Quiwi and Yandex Money.
It supports domestic payments in multiple currencies in addition to the Rouble, including euros and U.S. dollars, which helps reduce risk for Russian issuers. The system is also compliant with MirAccept in Russia, the country's equivalent of 3D-Secure.
Companies like All Nippon Airways, inCruises, Air China and shopping app Joom are accepting payments from Russian consumers.
"Russia has historically been a tough e-commerce market to crack," Daria Nikoleava, public relations manager for Europe at Joom, said in the release.