You surely have heard about self-service payment terminals at least once. You probably even had chance to apply to one of the wide variety of those. But for some reasons the greatest popularity this kind of interactive kiosks, representing hardware devices that work in combination with self service software, allowing users to perform any possible transaction, gained within Russia and Commonwealth of Independent States (CIS) members.

This sector of Russian market of electronic payments even seems to be the most wholesale and the most profitable, revealing uniting trend, with over 400,000 devices across the country. So, why self-service payment terminals gained such a huge popularity among Russian businessmen, and currently became one of the most widespread kind of e-payment devices?

International experts lift their hands in dismay, wondering why there is a huge volume of self-service payment terminals in Russia, which moreover are very profitable.

Actually, these kiosks let users pay a public utility accomplishing an online transaction, or collect cash in exchange for merchandise. Customized components such as coin hoppers, bill acceptors, card readers and thermal printers enable kiosks to meet the owner's specialized needs.

On the Russian market of electronic payments self-service payment terminals are mostly dealing with accepting utility payment bills, pre-payment to an Internet service provider, credit repayment to a bank. They are mostly popular as they let any person to top-up a mobile phone account at almost any public place with a very small commission charged. Meantime self-service kiosks let users credit their electronic accounts or debit card accounts.

In Russia, about 30 manufactures supply nation’s market with wide variety of self-service payment terminals. Payment terminals are so popular amid public for its high off-line mode level, with monitoring accomplished via the web.

So, why these kiosks are so much popular amongst Russian consumers as well as businessmen? Well, self-service payment terminals capabilities are aimed for the convenience and profitability of both consumers and business industries. The benefits include:

• ease of access
• reduced transaction time
• access to information
• ability to perform multiple transactions
• financial service includes: bill payment, check cashing and credit applications
• retail product information access, such as in-store product lookup and information
• customer check-in such as airlines and hotels.
• internet access
• visitor management and security
• human resources for benefits information
• retail check-out POS systems in grocery stores and hardware stores.

For business industry particularly this advantages include reduction in staff and real estate requirements since one employee can monitor multiple self-service kiosks; unattended operation with extended service hours and off-site locations; supplying users with a more enjoyable experience boosting customer satisfaction; track usage statistics.

Actually, targeting to conquer foreign markets of electronic payments, some Russian self-service terminals manufacturers once settled their devices in China and several CIS countries. But this move failed because of a very low appeal to kiosks. That also reflected the fact self-service payment kiosks are not popular in other countries.

Concerning some specific factors that drive terminals’ spread across Russia, it’s important to say about non-confidence. Wonder? But business entities mistrust each other. Like that, mobile providers don’t trust their subscribers, not granting any credit mostly - excluding some corporate offerings, which however have a rather low credit line. So, mobile holders have to pre-pay their mobile phone accounts, otherwise they’ll not have an ability to make, or sometimes even receive, an important call.
Banks are also usually not delighted to supply people with credit card accounts, revealing their distrust to public. So, credit card payment system is on a significantly lower level relative to other developed countries.

On the other hand, though it sounds strange, individuals don’t trust banks or other financial organizations, preferring to safe their money by themselves somehow. So, Russian people are not often to apply to a bank to open a saving account, or getting debit card, using cash for the majority of payments. There is also no any convenient system of withdrawing money from individuals’ banking accounts, for their utility bills repayment for instance, without acceptance.

Meantime, the rapid deployment of payment terminals in Russia, led to development of crime, performed by illegal cashing-out. That surely let some unfair businessmen to avoid tax payments. This type of cashing-out has been gaining popularity since 2005.

The scheme is working as following: money from the operating account of so-called fly-by-night company is transferred to the operating account of a company maintaining payment terminals. In turn, it transfers money collected from the public with the help of terminals - excluding forehead agreed interest- to cashing-out market players. Actually, imperfection of legal framework, sustained the appearance of such an unfair method of cashing-out money.

This negative fact also became one of the driving factors of self-service payment terminals success in Russia. However, the situation is getting better as Russian president Dmitry Medvedev, targeting to eliminate fraud with payment terminals, issued a law ordering payment agents, supplying with terminals, are ordered payment terminals to be featured with cash registers. This action will supposedly reduce the volume of unfair money cashing-out and other related counterfeits.

Well, self-service terminals offer a variety of conveniences while paying different kinds of bills at any time at any place. And such a rapid growth of their volume in Russia might seem to be seen as a good sign. But, for some reasons, self-service terminals’ rapid deployment in Russia is mostly driven by some negative factors. However, the benefits terminals supply with are irrefutable.

Interestingly, Russia appeared to become the world leader in terms of self-service kiosks deployment. This fact can be explained as lack of credibility along with business entities mistrust within the country, while other developed countries can boost they have strong credit infrastructure.

So, it’s obvious that the countries, like Russia, can easily become a platform of self-payment terminals successful rolling out. That is a result of the monetary policy and financial legislation imperfection, low credit cards usage penetration along with stagnant development of electronic money and electronic payment systems.

On the contrary, the countries, where different financial and banking services are developed highly, with high percentage of credit cards usage, where the majority of goods and services payments can be withdrawn from banking account, can hardly accept such terminals because as there is no need to apply to this kind of electronic devices in these countries as often as in Russia.

That’s why self service terminals gained the greatest popularity just in Russia, where some economic conditions underpin such a process.