Magnit launches Magnit Pay

Magnit launches Magnit Pay

KRASNODAR, RUSSIA: Magnit PJSC has initiated development of its super app, which will use the existing loyalty program to bring together online ordering, payment and credit solutions, lifestyle and other non-financial customer services, as well as privileges from its partners. As the first stage in creating the super app, the Company launched the Magnit Pay payment service, developed in partnership with VTB group.

The Magnit Pay tool enables customers to pay for their purchases in any store, including online. Having registered in the app, users will have access to enhanced capabilities that allow issuing a virtual card with balance and monthly spending limits up to 60 and 200 thousand rubles of personal finances, respectively.

This card will also enable customers to transfer money to any Russian card. Customers can top their card up for free as well as add it to various Pay services. Loyalty program members using Magnit Pay will get an additional 0.5% of their purchase amount accrued as bonus points. For 30 days after the first purchase, customers will receive double point rewards.

In H1 2021, Magnit Pay’s functions will be significantly expanded. It will allow users to pay for third-party services (utilities, telecommunications, fines).

The company also plans to introduce contactless payments for customers whose smartphones are not NFC-enabled and wire transfers between members of its loyalty program. Magnit’s customers will be able to withdraw cash from VTB ATMs using only a QR-code.

Over the long term, the superapp is planned to cover non-financial services for ordering and paying for taxi and cinema and theater tickets. Users will be able to make reservations and food delivery orders as well as subscribe to other services. Ultimately, the superapp will also incorporate the Company’s own service to deliver goods from all Magnit formats.

“The launch of Magnit Pay represents an important milestone in the establishment of Magnit’s superapp. We want to be at our customers’ side at all times, and so strive to create convenient and easily accessible services they can use every day. During the coming months, we will refine the basic functionality of Magnit Pay and incrementally add new services to expand the opportunities for our customers and make being a part of Magnit’s ecosystem as rewarding as possible,”-commented Florian Jansen, Magnit’s Deputy CEO and Executive Director.

“Using Magnit Pay, we’ll bring together non-financial services and lending products, so our customers wouldn’t need to go to a bank to issue a card or make a transaction. All this will be available at a moment’s notice in the app, which will serve an audience of several million people. One of VTB’s major objectives is to incorporate simple yet high-quality financial services into regular and super apps of our strategic partners. We see great potential in integrating our products into lifestyle services catering to a broad audience to enable customers to use a single interface to access convenient tools allowing them to address a wide range of everyday problems related to various aspects of their life,”-noted Svyatoslav Ostrovsky, Member of the Management Board at VTB.

“The new digital platform is the first joint project between a banking group and a retail chain in the world aimed at cross-format retail,”-commented Andrey Makarov, CEO of Lifestyle Platform project of VTB Group. Magnit Pay is available to members of the Company’s loyalty program. The service will allow them to issue a card and use any NFC-enabled device for contactless payments when shopping. To use Magnit Pay, customers have to download the Magnit app to their smartphone.

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