A major Russian corporate bank has chosen its lead payment vendor. Reports over the weekend said Russia-based Sberbank, which provides financial services to more than 1 million corporate customers in the country, will be working with electronic payments company PAX Technology as its main payment terminal supplier.
[bctt tweet=”Sberbank will be working with electronic payments company PAX”]
In a statement, PAX CEO Jack Lu said that Russia is a key market for the company.
“The alliance with Sberbank will allow both companies to exploit new revenue opportunities in the growing Russian market,” he said, “and we will continue to invest in the local market in delivering a faster, more convenient and increasingly reliable set of services to customers.”
According to reports, PAX will provide mobile, countertop and PIN pad payment terminals for Sberbank’s corporate customers. The companies said their collaboration is part of an effort to strengthen PAX’s market share and revenues for FY2016, while Sberbank sees the partnership as a way to increase its activity in Russia’s payments industry.
Russia has been heightening its FinTech market at home while overseas companies struggle to operate in the country. Last year the nation was threatened with being cut off from the SWIFT global financial messaging network, though the latest reports suggest that those sanctions, as proposed by EU leaders, will not move forward.
The nation’s banks have also struggled on the global stage, as Russian policymakers warned last September that the country’s financial institutions are unlikely to implement Basel III banking standards by the start of next year as planned.
Basel III rules are guidelines aimed at mitigating risk within the world’s largest banks. However, unnamed sources recently said that the threat of a reduction in corporate lending as a result of Basel III implementation has caused officials to delay their adoption in Russia amid an economic recession.
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