In 2012 the payment system LEADER was engaged in technical modernization in order to enter the market in 2013 with an updated product range and high quality of service of the partners and their clients. Sergey BLUDOV, member of the board of directors, chairman of the board of NPO LEADER, told NBJ in an interview about the company's plans to develop its business in 2013 and in the midterm horizon.

NBJ: A new team joined NPO LEADER in 2012. Please, tell us about the first results of its work and about the strategy of the company.

S. BLUDOV: In 2012 we finished the main stages of our IT systems upgrading. The strongest developers, programmers, marketing specialists, "producters" and other specialists came to the company. I can safe say that our team is one of the best in the market.

NPO LEADER is ready to offer to our Russian and foreign partners our ready package solution for all distribution channels (cash departments, terminals, Internet bank) and for all types of money transfers and payments.

Our partner only needs to buy the equipment recommended by us, and we will provide the whole back office and processing on flexible terms, including with account of regional presence of the partner. Widening of our company in all directions also took place in 2012, thus Russia, Azerbaijan, Ukraine and the United Arab Emirates became the key countries for us.

The strategy of NPO LEADER proposes entry into new distribution channels and expansion of the product range. Thus we, certainly, remain in the classical market of bank money transfers.

NBJ: In total, the number of transactions by the LEADER system following the results of the first quarter of 2013 exceeded five million which is three times as much as in January - March, 2012. At the same time the average transaction amount decreased. What does it mean?

S. BLUDOV: In summer of 2012 the number of payment devices of the LEADER system promptly grew. The average payment amount decreased because we came to a wider range of clients. If our terminal is at location of the service provider (housing cooperatives, managing companies, maintenance services), the average payment amount is high. If the terminals are installed in the street, the main flow is payments for services of cellular service providers; the average payment amount thus is 150 rubles. Having expanded an ambit of clients as much as possible, we start offering them other services of our payment system.

NBJ: How is the service quality in the system supervised?

S. BLUDOV: High service level is a priority for any payment system. Any provider of this service understands that it shall be qualitative to the greatest possible extent irrespective of its price, because a consumer, having been disappointed once, will never address the same company again.

Service quality is measured, first of all, by dynamics of sales. Another indicator is the number of claims. Our call-center keeps analytics on this matter, and then we introduce changes either in our SW, or in technologies of service rendering, or we change distribution channels.

NBJ: What methods of payment do your clients actively use?

S. BLUDOV: As the product range of the LEADER payment system includes all services existing in the market, we have many client groups which use different channels of payment.

Historically we grew from a money transfer system. Users of this service are individuals who send the amounts up to 500 dollars either across Russia, or from Russia to the CIS. Labor migrants got used to be served at banks offices. However in recent years it has become possible to make money transfers via retail distribution networks. It provided rapid growth of the payment systems market.

All payments are divided into several groups, each of which has its specifics. For example, in case of payment for a high-cost service (tours, air tickets, insurances or credits settlement) clients are severe upon quality and reliability of the service and therefore they prefer to pay at the desk. However, in remote regions all channels work for credits payments. Housing services can be paid for both at the desks and in terminals, and state services - generally in terminals which stand in organizations. There is also a huge market of accounts replenishment - that is RBS (Remote Banking Service), cash desks and terminals. All channels of MFO loans redemption are developing gradually.

NBJ: Some systems in the advertisements declare cash remittance tariffs from 0%. Is it a dumping or some hidden commissions?

S. BLUDOV: Really, several systems in the market showed tariffs from 0% in 2012. In most cases this refers to some hidden commissions, transfers with conversion when the service provider's income is included in an unprofitable rate for the consumer or a funds transfer to a card of one of partner banks takes place. That is clients are mis­informed.

Thus basic fares of the main operators are at rather comfortable level, and for the sake of an illusive discount any client will not waste time and risk reliability. The most important thing now is trust in service and its walking distance.

NBJ: The LEADER system actively develops a network of terminals. To what extent are they in demand by consumers?

S. BLUDOV: Terminals are in demand and very perspective in their present sphere of use. I believe that in several years terminals will turn into an interface for electronic purse management or for replenishment of one's own card, and clients will make all transactions using their smartphones, tablets and other devices of remote access.

We can see that our partner banks try to release their cash desks from money transfers, to transfer this transaction to terminals and to DBO. However they should be very careful here. Some age groups, which are used to paying for utility charges via cash register, will not use terminals. If the bank does not offer this habitual service to them, people will go to some other credit organization or to an office of the Russian Post. But the bank is not able to afford to lose these clients as their deposits "will go" together with them. Examples when a financial institution lost a part of its deposits because of unwillingness to serve pensioners - payers of utility charges, already exist in the market. It is necessary to consider similar nuances.

NBJ: You have mentioned that quite recently the company has entered such exotic market as the United Arab Emirates. Why have you chosen this direction of expansion and what are the first results of work in the market of the United Arab Emirates?

S. BLUDOV: This country, in contrast to many other states and the whole regions, goes through economic recovery now, many labor migrants come to the United Arab Emirates. The tourist flow to this country grows as well - service personnel are required. Furthermore comfortable conditions for business development are created in the Emirates, which attracts visitors additionally. Therefore, all newcomers need payment services.

NBJ: What will occur in the market of money transfers and payment services this year according to your estimate? What tasks are facing NPO LEADER?

S. BLUDOV: Distribution channels will shift from bank offices towards bank agents and Remote Banking Service. Trust in terminals will grow.

As for our purposes, NPO LEADER plans to implement cumulative technological potential both in traditional service points and in remote channels and terminals in 2013. In the second half of this year we will transfer a new platform and will use it in an industrial mode. The system is already approved, its high level is already confirmed, and it will allow us to increase quality of our service significantly and to expand our product range, which will be noticed by all our partners and their clients at once.