Tuesday, March 28, 2017

UBRD says plastic is king in attracting customers

The Ural Bank for Reconstruction and Development (UBRD) believes one of the best ways businesses can gain customers is to provide more than one option of payment.

Records at UBRD show that Russian customers spent more than $31 billion on non-cash transactions during the second quarter of 2014.

Paying with plastic has become a habit for many Russian citizens with more than 220 million people using credit cards in Russia. Many customers report that they prefer paying for their products with plastic because it is safe, convenient and fast.

Both businesses and customers benefit from the simplicity of plastic cards. Businesses that allow plastic payments gain new customers, reduce safety risks with cash, increase the number of purchases and decrease time spent with customers at the register.

The government is supporting this transition from cash to plastic, having made a federal law in 2014 that requires businesses to offer both plastic and cash as payment options for customers. The law includes a fine of $871 for businesses that do not provide these options.