Share of NFC payment users to reach 10% of total number of mobile subscribers by 2017-report

In 2013 MTS, a mobile network operator in Russia, launched two NFC adoption projects in Russia for NFC ticketing system in public transport. Project participators were Kazan and Novosibirsk, two Russian cities with population of more than one million people. To take part in the project, MTS subscribers were suggested either to buy NFC-enabled smartphone, or change SIM-card and add a special NFC antenna to the phone.

First results of pilot revealed that in April, 2013 there were almost 4500 trips in Kazan made with the help of NFC phones, and in October number of trips in Kazan and Novosibirsk increased up to 13,000, growth made up 188%. Total number of NFC SIM-cards given to MTS subscribers was 7,000 pieces. According to the public opinion polls, more than 30% of respondents in both cities are aware of public transport ticketing service adopted by means of NFC SIM-cards.

According to the report, announced on the first Russian National Payment Forum, the main problems which the company faced during implementation of these projects were: conservatism of the users being wary about innovations, unwillingness of the users to overpay for comfort when using new payment methods, poor compatibility of some NFC smartphones with NFC readers, low NFC smartphone penetration among the target audience.
MTS-branded NFC smartphone was released for sale and does not charge subscription fee and commission fees for NFC payments.