MAGNIT PJSC (MGNT)
Magnit launches Magnit Pay
15-Dec-2020 / 09:59 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
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Press-release | Krasnodar | December 15, 2020.
Magnit launches Magnit Pay
The payment service represents the first step in creating the Company's own
Krasnodar, Russia (December 15, 2020): Magnit PJSC (MOEX and LSE: MGNT; the
Company), one of Russia's leading retailers, 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
"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.
For further information, please contact:
Director for Investor Relations
Office: +7 (861) 210-48-80
Director for Investor Relations
Office: +7 (861) 210-9810 x 15101
Media Relations Department
Note to editors:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers.
Founded in 1994, the company is headquartered in the southern Russian city
of Krasnodar. As of September 30, 2020, Magnit operated 38 distribution
centres and 21,154 stores (14,699 convenience, 469 supermarkets and 5,986
drogerie stores) in 3,819 cities and towns throughout 7 federal regions of
the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 1H
2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9
billion. Magnit's local shares are traded on the Moscow Exchange (MOEX:
MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a
credit rating from Standard & Poor's of BB.
This document contains forward-looking statements that may or may not prove
accurate. For example, statements regarding expected sales growth rate and
store openings are forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other important factors
that could cause actual results to differ materially from what is expressed
or implied by the statements. Any forward-looking statement is based on
information available to Magnit as of the date of the statement. All written
or oral forward-looking statements attributable to Magnit are qualified by
this caution. Magnit does not undertake any obligation to update or revise
any forward-looking statement to reflect any change in circumstances.
Category Code: MSCU
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 89696
EQS News ID: 1155135
End of Announcement EQS News Service
(END) Dow Jones Newswires
December 15, 2020 01:59 ET (06:59 GMT)