Between January and September 2023, money moved abroad via mobile apps by Russians rose threefold compared with the same period the previous year. The majority of transfers went to Kazakhstan, Azerbaijan, and Uzbekistan. This insight comes from a study by Pochta Bank based on its customers’ transaction data, with results provided to editors of socialbites.ca.
Cross-border transfers are predominantly routed through Moscow, but demand also comes from residents of St. Petersburg and the Sverdlovsk, Novosibirsk, and Chelyabinsk regions. Regions such as the Amur, Karachay-Cchern, St. Petersburg, and the Khabarovsk and Krasnoyarsk areas show the largest average transfer amounts for international payments.
The main drivers of the growth include the separation of international payment systems from the Russian market and restrictions on using Russian bank cards abroad. As a result, funds flow through alternative channels and methods for sending money. People transfer funds to support family members and business partners abroad, sometimes also buying foreign currency or making purchases overseas. The overall volume of cross-border transfers to loved ones and business associates abroad has risen noticeably, according to Vladislav Ermakov, head of digital business development at Pochta Bank.
He notes that expanding transfer destinations to friendly countries has further boosted cross-border activity. The bank’s mobile application now enables instant transfers from any card to national payment system cards in several neighboring regions and countries, including Belkart in Belarus, Elkart in Kyrgyzstan, Korti Milli and Express Pay in Tajikistan, and ArCa in Armenia, as well as versions in Abkhazia and South Ossetia linked to Mir. Transfers to Visa and MasterCard networks in Kazakhstan and Uzcard and HUMO networks in Uzbekistan are also supported. Transfers occur in rubles and are converted at the issuing bank’s prevailing rate for the recipient card, with only the recipient card number required for sending.
The study underlying these findings was conducted in September 2023. It highlights how geopolitical and regulatory shifts can reshape cross-border payment behavior, a trend evident not only in Russia but also in North America. In Canada and the United States, similar patterns appear where mobile wallets and cross-border payment services are increasingly used to facilitate remittances and international purchases, underscoring a broader move toward flexible, card-to-card and card-to-bank transfers across borders.
Previously socialbites.ca highlighted five methods to send money abroad, illustrating the variety of ways people can move funds internationally in today’s digital economy.