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Are virtual cards becoming preferred payment option?

The COVID-19 pandemic has prompted most trade platforms and customers to go online to minimize visits to offices, banks and shopping malls, a media release by the virtual banking service TalkBank reported. For most consumers, who are currently on lockdown, all contacts while making purchases are now limited to the use of contactless delivery to pick up goods they ordered at online stores, with payments made with a bank card.

According to the online business resource Shopolog, between March 16 and March 22, when part of Russian citizens started switching to online studies and work, online payments on websites and grocery store apps increased by 21% as compared to the previous week, with the average check growing by 10%. Online marketplaces that sell health products, vitamins and dietary supplements saw their cash flow increase by about 25%, with the average check growing by 16%.

The data provided by CityAds Media showed that due to the changes caused by the COVID-19 pandemic the food delivery industry will see the average growth of 47% this year. Even those who did not use online ordering and food delivery services have started to do so when necessary, analysts noted.

A handy and efficient financial tool is required for a greater online buying activity. A virtual bank card can become such a tool, with customers able to easily make it the preferred means of payment in the personal account at an online store, add it to their PayPal account, or add it to their mobile phone for instant online payments with the use of contactless payment systems such as PayPass, PayWave or ApplePay. 

Currently, Russia’s top banks are offering appealing virtual card options in the Russian market. TalkBank offers cards issued by a fully automated system via a chatbot in one of the five most popular messenger apps, with no fees for issuing and maintenance of cards, no limits for free money transfers, and up to 40% cashback from partner companies. Tinkoff Bank’s options include no fees for loading cash to the bank card using ATMs worldwide as well as up to 30% cashback on all purchases from the bank’s partners and a 15% cashback on purchases of special category goods chosen by the client each month. With a virtual card issued by Sberbank, clients will receive 30% of the purchase price back as bonuses, while such longtime players in the virtual card market as Yandex.Money and Qiwi offer low tariffs for card maintenance as well as a greater transaction anonymity.              

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