Russia’s Fast Payment System Via Phone Set To Expand Into The Global South

Russia’ Fast Payment System (SBP), in which banks will accept money transfers by phone number is rapidly developing and has now expanded to include nine countries: Abkhazia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Laos, Moldova, Tajikistan and Uzbekistan. The number of foreign banks accepting money through the SBP by phone number is also growing, with 50 now accepting the system. This trend is set to continue in 2025 and especially in Asia. The system’s technology effectively renders SWIFT redundant.

Russia’s Alfa Bank and VTB make SPB transfers to Belarus, Tajikistan and Uzbekistan, as well as to Kyrgyzstan through VTB. They will soon be joined by Iran. T-bank provides clients with the possibility of transfers to nine countries, including Abkhazia, Armenia, Kazakhstan, Moldova and Laos. Iran will soon follow.

The benefit of the SPB system is that all transactions are instantaneous, and inexpensive – the commission is 0.2% of the transaction amount, although the banks may also charge a commission. The transactional transfer limit is typically set at ₽1 million (US$9,820), depending on the recipient bank.

The Agricultural Bank of Russia (RSHB) and Novik Bank can also make SBP transfers to Belarus, Tajikistan, Uzbekistan and Kyrgyzstan, with RSHB charging a commission of 1.5%. and a limit of ₽1 million per month. Other banks are more flexible, allowing transfers of up to ₽30 million (US$295,400) per month, suitable for corporate traders.

Since the introduction of sanctions and the withdrawal of international payment systems from Russia, the issue of transferring funds abroad has become more urgent. In early 2022, Russia-issued Visa and MasterCard cards stopped working in both Russia and overseas. In addition, the largest Russian banks, including Sber, VTB, PSB, RSHB, MKB, Novikombank, and Sovcombank were disconnected from SWIFT.

It therefore became necessary to implement alternative solutions, which is why SBP transfers began to develop, and almost impossible to disconnect or sanction as they use national digital communications networks as a transfer mechanism.

At present, Armenia, Belarus, Kazakhstan, Tajikistan and Uzbekistan account for more than 90% of the total number of international SBP transfers received from Russia. Currently, the main users of cross-border transfers are migrant workers and Russians who have moved abroad. The ability to send funds abroad via SBP is also used to top up foreign cards when traveling.

The demand for transfers abroad under the SBP is likely to continue to grow. This is due to the convenience, speed and relatively low fees of such transfers, as well as the expansion of participating countries. Russia is actively offering friendly states cooperation with its Mir system, and over the coming two to three years new recipient countries for SBP transactions will almost certainly appear, with Turkiye, Africa, Asia, South America and the Middle East all likely to accept the technology and permit SBP use in handling inbound financial transfers.