Home / Business / Instant Payment Companies Divided the Market

Instant Payment Companies Divided the Market

A new division of the market has occurred two years after  the instant  payment companies defined  a commission fee of 4% while replenishing their mobile phone balance through instant payment terminals.

In particular, David Kenchadze, CEO of TBC Pay,  notes that the company holds  28% of a market share.

Kenchadze claims that the company’s turnover fell by 20% when a commission fee on replenishment of mobile phonebalance was imposed, however, the market was divided , one  company went bankrupt, and due to this they’ve managed to restore the turnover to previous levels  in the shortest term.

Kenchadze notes that last summer TBC Pay system was rebranded, in particular,  the company is represented on the market under two brands  – TBC Bank terminals and Multipay. Accordingly, in Kenchadze’s words, the number of payment terminals has doubled in  5 months and now totals 3 700 .

Kenchadze notes that in  future they will focus on high quality and accessibility. In addition, they are  going to increase the number of payment terminals  in the  market.

Levan Kirvalidze, Director of Nova Technology, does not specify  the number of payment  terminals the company owns, however, notes that their company holds up to 30% a market share.

Kirvalidze also notes that the company is now more advanced than in 2013, when a 4% fee was charged to customers. At the time, the problems arose, however, has not caused a catastrophe.

According to him, their strategy does not include  fees change, because if for the banks this  is an additional service, for the Nova Technology – it’s net business, so if a direction is not profitable, it is either canceled or closed, etc.

In Kirvalidze’s words,  they  try to attract more loyal customers and increase this segment, as well as to  introduce new products.

It should be noted that the number of  Express Pay machines  of “Bank of Georgia ” makes 2 000 here across the country,  apart from instant payment terminals,  “PrivatBank”  owns   307 self-service payment terminals.

From April 1, 2013 mobile operators began shifting the cost of services on to consumers , there is a 0% charge on Bank of Georgia machines, other similar pay boxes charged 4% per lari.

OSMP and  “Nova Technology” instant payment companies  accused “Bank of Georgia”  of creating  a monopolistic scheme on the market through cartel deals  and corrupt practices in the instant payment market.

Later, OSMP went bankrupt and left the market ;  TBC Pay and  Nova Technology  divided its payment terminals between themselves.

OSMP owned 750 express payment terminals in Tbilisi and up to  4 000  throughout Georgia.

A new division of the market has occurred two years after  the instant  payment companies defined   a commission fee of 4% while replenishing their mobile phone balance through instant payment terminals.

In particular, David Kenchadze, CEO of TBC Pay,  notes that the company holds  28% of a market share.

Kenchadze claims that  the company’s turnover  fell 20%  when a commission fee on replenishment of mobile phonebalance was imposed, however, the market   was  divided , one  company went bankrupt, and due to this they’ve managed to restore  the turnover to previous levels  in the shortest term.

Kenchadze notes that last summer TBC Pay system   was rebranded , in particular,  the company is represented in the market under two brands  – TBC Bank terminals and Multipay. Accordingly, in Kenchadze’s  words, the number of payment  terminals has doubled in  5 months and now totals 3 700 .

Kenchadze notes that in  future they will focus on high quality and accessibility. In addition, they are  going to increase the number of payment terminals  in the  market.

Levan Kirvalidze ,  Director of Nova Technology,  does  not specify  the number of payment  terminals the company owns, however, notes that their company holds up to 30% a market share.

Kirvalidze also notes that the company is now more advanced than in 2013, when a 4% fee was charged to customers. At the time, the problems arose, however, has not caused a catastrophe.

According to him, their strategy does not include  fees change, because if for the banks this  is an additional service,  for the Nova Technology- it’s net business, so if a direction is not profitable, it is either canceled or closed, etc.

In Kirvalidze’s words,  they  try to attract more loyal customers and increase this segment, as well as to  introduce new products.

It should be noted that the number of  Express Pay machines  of “Bank of Georgia ” makes 2 000 here across the country,  apart from instant payment terminals,  “PrivatBank”  owns   307 self-service payment terminals.

From April 1, 2013 mobile operators began shifting the cost of services on to consumers , there is a 0% charge on Bank of Georgia machines, other similar pay boxes charged 4% per lari.

OSMP and  “Nova Technology” instant payment companies  accused “Bank of Georgia”  of creating  a monopolistic scheme on the market through cartel deals  and corrupt practices in the instant payment market.

Later, OSMP went bankrupt and left the market ;  TBC Pay and  Nova Technology  divided its payment terminals between themselves.

OSMP owned 750 express payment terminals in Tbilisi and up to  4 000  throughout Georgia.