The VISA direct function appeared in the “Apelsin” payment application of “Kapitalbank” on August 23. Currently you can transfer money from VISA cards of “Kapitalbank” to VISA cards of other banks, including money transfers overseas. Sergey Gimadiev, Deputy Chairman of the Executive Board of “Kapitalbank”, speaks about the advantages of VISA Direct, “digitalization” of banking processes and the afterlife of money transfer services like “Zolotoya Korona”.
- Sergey, what is VISA direct?
- VISA direct is the service enabling to send money from VISA cards of “Kapitalbank” to VISA cards of other banks to any CIS country and about 20 European countries. In this case, it doesn’t matter in what currency the recipient’s cards are issued. For example, you want to send money to Russia, and a recipient has rubles on the VISA card there. You can send the USD from your card and VISA will automatically convert them into rubles.
- The VISA payment system has been operating in Uzbekistan for several decades. Why has the VISA direct been launched only now?
- Firstly, the reason is the adjustment in legislation. A short time ago the law on foreign exchange regulation allowed making transfers between cards of various customers. Earlier transfers were not available to individuals and it was possible to transfer dollars within the territory of the Republic of Uzbekistan only from the own account in foreign exchange only to the own account in foreign exchange opened, for example, in another bank or branch. Nowadays transfers from card to card in foreign currency have become available.
Secondly, “Kapitalbank” has held a course for the digital technologies development. We are actively updating “Apelsin”, trying to bring as many banking services as possible to “digital” format, so that people can solve the majority of the issues without visiting the bank. The same approach is with cards - our users can easily manage them - block, monitor expenses and revenues, make transfers.
- What does the appearance of VISA direct signify for money transfer services? Will “Zolotaya Korona” lose its urgency?
- Both VISA and Mastercard have been developing such a transfer system for a long time. And sooner or later the market share of standard money transfers will definitely shift from ordinary offices to remote service channels. The VISA direct is one of the many services that helps customers receive high-quality service and, naturally, it will make an impact on the share of standard money transfers. Nowadays in Uzbekistan it is difficult to find such an application in which you can independently send money through any money transfer system. In case of receiving money – you are welcome. However, sending money automatically, and even so that the recipient will not have to go to the office ... In fact, I don’t know any application that can provide this service efficiently, within 24 hours and in fully automated form.
Moreover, people have long preferred international cards of “Kapitalbank”. In reliance upon the data from VISA it is possible to make a conclusion that we are one of the leading banks in the republic in terms of the number of cards and their turnover. VISA direct is, first of all, a service for our customers. However, we are not the only ones who are developing this business area. Another 2 banks have launched transfers from Visa cards for their customers. Each bank independently determines its limits and commissions, and also differs by the available countries to which card a transfer can be sent. And I am sure that the list of such banks will constantly increase.
Under the condition that the share of standard money transfers will move to VISA direct, our service will not entirely replace transfers. Despite the fact that approximately 23 million cards have been issued in the republic, the number of VISA holders is still very small. One person can often have several cards, while most of them do not use VISA at all. Furthermore, to transfer money using VISA direct, it is required to have a smartphone or Internet access on a computer to the apelsin.uz website.
Currently the number of people who simultaneously use mobile Internet on a smartphone and VISA cards constitutes a very small percentage of the population, compared to those who got used to making standard money transfers.
In addition, people don’t always trust new technologies. When the first self-service terminals appeared 15 years ago, people were suspicious of the possibility to pay for the same mobile connection not through the Paynet office where a living person was sitting, but through the “iron soldier”. Just about the same deal is happening now when you have to choose to have trust your money in a mobile application or take it to a bank office.
And now it turns out that you somehow sent money by air and it must be converted somewhere “there” and all this without the visible participation of the bank. People doubt and this is completely normal - they will get used to it sooner or later. The main “drivers” are young people who will help and educate their parents and grandparents. VISA direct will be used basically by the younger generation, while older people are more likely to prefer standard money transfers.
- How can you allay concerns of those who do not trust VISA direct?
Before VISA allowed us to launch this service, we have gone through the PCI DSS certification. Our network and infrastructure are protected by all standards. “Kapitalbank” is a principal member of the VISA International. Visa company itself trusts us thoroughly.
The VISA direct is integrated into Kapitalbank’s mobile application “Apelsin” which is already used by over 200 000 people. The rating of the application in the Play Market constitutes 4.7, and in the App Store it is 4.8 points out of 5 possible. The VISA direct is also available in Apelsin’s web version: apelsin.uz
We are constantly working on improving the quality of service and simplify the process of using banking services for our customers!
