Carrier billing services available for Russians via MegaFon

The card enables customers make in-store purchases wherever Mastercard is accepted, charging the payment to their mobile phone bill. It is available in the operator’s stores in Moscow, St Petersburg and other leading cities. It will be available nationwide from 1 October 2016. The card has no service fee and it is issued by the country’s Round Bank, complying with all bank card security requirements.

Card benefits include 8% interest rate paid monthly on the balance held in users’ mobile accounts. Additionally, users will be able to get up to 10% of the value of a transaction back from select retail partners. Users can also send money to other MegaFon subscribers, both within Russia and internationally, commission-free.

However, customers might have to pay a small fee to receive a MegaFon card. They can apply at one of the operator’s stores and show a passport to prove their identity. The contactless cards are free for those on the All inclusive tariffs. For others, the card costs from RUB99 (USD 1.5). The user then calls 5555 to activate the card. An app for the card is available for download on Android, iOS and Windows Phone on which they can track transactions, make transfers and pay for goods and services.

There is no indication that the app and user’s smartphone can be used to make NFC-based payments at points of sale where MasterCard is accepted. The only mention is of the plastic contactless card, according to Mobile World Live.