Contactless payments affect average transaction: Yandex.Checkout study
February 28, 2020
Contactless payments continue its rapid expansion into e-commerce in Russia, and the efficiency of alternate payment methods introduction has been proved. According to the recent study conducted by Yandex.Checkout analysts, the conversion rate within contactless payments is higher than in traditional bank card operations, and the average transaction is significantly higher in some categories in comparison with other payment methods. 19% of the companies utilizing Yandex.Checkout accept contactless payments via Apple Pay and Google Pay on the web-site or in the app.
Most often contactless payments are enabled by companies selling groceries online — 24% of them accept payments via Apple Pay and Google Pay. Throughout other categories the number of merchants utilizing contactless payment solutions is smaller: movie, theatre, museum tickets — 23%, hobbies and education, beauty and health products — 20% for each category, auto parts and accessories — 17%, household and gardening appliances — 16%. There is a curious correlation with the data on shopping behavior in Russia. According to PWC, 71% of Russian customers shop online at least once a month and 79% of them use a smartphone to shop online. Analysts from Yandex.Checkout report, that 44% of payments were conducted from mobile devices, the number grows up to 5% in the last years.
Industry split by average transaction in contactless payments
The average transaction is significantly higher when paid contactless in comparison with other payment methods in some categories. For example, at apparel and shoes web-stores it is 5 times higher.
“The fact that average contactless transaction is at times greater than traditional bank card transaction is quite rational: it is easier for customers to pay contactless — no need to pull out the card from the wallet and waste time on entering the credentials. Contactless payments eliminate payment failure due to the wrong entered payment information. The only reason that can negatively influence the payment — an insufficient amount of funds. That’s why conversion rate at contactless payments accounts for 94%,” — said Oksana Korobkina, CCO at Yandex.Money.
Last year the greatest average transaction in contactless payments were at the web-sites offering design and construction services — $155 (9766 rubles). Average transaction in payments with card or online-banking is 3 times less and stands at $50 (3202 rubles). Hotel booking is the second category in the rating by average transaction ($152 or 9570 rubles via contactless and $80 or 5068 rubles via cards). Average contactless check at apparel and shoes is 5 times greater than traditional — $91 (5759 rubles) vs $17 (1123 rubles).
Average check in contactless payments by categories
1. Construction and design - $155
2. Hotel and accommodation booking - $152
3. Jewellery - $151
4. Construction products - $135
5. Electronics and home appliances - $127
6. Tourism and leisure - $105
7. Utilities - $97
8. Apparel and shoes - $91
9. Medical products - $90
10. Sports goods - $84
Revenue in contactless payments by categories
The greatest revenue in contactless payments belongs to electronics, which is true for the country in general. The only exclusion is the city of Moscow — top-revenue category is tickets to movies, theatres and museums, at the national scale this category is the second.
Categories of spending by revenue
2. Tickets to movies, theatres, museums and concerts
4. Personal education and training
5. Accessories and goods for hobbies
6. House and garden appliances
7. Beauty and health products
8. Credit organizations
9. Apparel and shoes
10. Autoparts and car accessories
The Yandex.Money analysts have examined payments on web-sites and apps of the merchants’, who ulitized Yandex.Checkout. The subject of the study and comparison was data regarding payments via Apple Pay, Google Pay and other methods. As of now Yandex.Checkout serves over 120 thousand companies.
Yandex.Checkout is the leading service for accepting online payments in Russia, according to a 2019 survey by MARC. Yandex.Checkout received the Best PSP Award in 2019 and the Emerging Payment Award in 2017 at the Merchant Payments Ecosystem conference (Berlin). With this payment solution, merchants from all over the world can offer Russian consumers the online payment methods most popular among Russians and CIS-citizens: bank cards, e-wallets, mobile phones, cash via mobile retailers and payment kiosks (there are over 250K cash-acceptance points all over CIS). Currently, more than 120K online stores across the globe use Yandex.Checkout.
Yandex.Checkout was launched by Yandex.Money in 2013. Yandex.Money is the joint venture of search engine Yandex (NASDAQ: YNDX), and Sberbank, the largest bank in Russia.