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Regulatory Filings • Mar 31, 2021
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MAGNIT PJSC (MGNT)
Magnit Launches QR Code-Based Payments for Magnit Pay Cardholders
31-March-2021 / 09:59 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
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Press-release | Krasnodar | March 31, 2021.
Magnit Launches QR Code-Based Payments for Magnit Pay Cardholders
Krasnodar, Russia (March 31, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, launched a solution that enables Magnit Pay cardholders to pay for their purchases using the same QR code as used in the loyalty program. This is the first in-house QR code-based payment solution in Russian retail.
To use this payment method, the customer should present their QR code, generated and constantly updated for security purposes in the the Magnit App and replaces the physical loyalty card, at the checkout, then choose to pay for the purchase using Magnit Pay and show the QR code again. The payment is made instantly directly from the customer's bank account without involving any payment systems. The new option is aimed primarily at those customers whose mobile phones do not support NFC (contactless data transfer).
The pilot project was launched in Saratov and Perm regions in Magnit Convenience and Magnit Cosmetic formats as well as Magnit Family supermarkets and Magnit Extra superstores, encompassing more than 1200 stores in total. The Company plans to pilot the solution a few months, after which it will decide on whether to scale it further.
"We are the first among Russian retailers to employ the same QR code which is used in the loyalty program as a payment method. With the help of the new solution, we will enable Magnit Pay users whose mobile devices do not support NFC to pay for their purchases without a physical bank card. At the next stage of the development of the service, customers will need to show the QR code only once, which will significantly speed up the checkout. In addition to that, we are considering the possibility of enabling QR code-based payments within our application for customers of other banks in the future," - commented Lyudmila Podyapolskaya, Director of Department for CRM, Loyalty, and Customer Analytics at Magnit.
Magnit is expanding the capabilities of its loyalty program as part of the strategy to build a super app on its basis. Earlier, the Company became the first Russian retailer to add payments for mobile, Internet, and TV services and topping up transport cards to its loyalty program application. All these payments are accepted commission-free. In the nearest future, Magnit intends to incorporate new options into the app, including services to pay utilities, fines, taxes, etc.
For further information, please contact:
Dmitry Kovalenko
Director for Investor Relations
Email: [email protected]
Office: +7 (861) 210-48-80
Dina Chistyak
Director for Investor Relations
Email: [email protected]
Office: +7 (861) 210-9810 x 15101
Media Inquiries Twitter
Email: [email protected] @MagnitIR
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 December 31, 2020, Magnit operated 38 distribution centres and 21,564 stores (14,911 convenience, 470 supermarkets and 6,183 drogerie stores) in 3,752 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS 16 results for FY 2020, Magnit had revenues of RUB 1,553.8 billion and an EBITDA of RUB 178.2 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.
Forward-looking statements:
This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or 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.
| ISIN: | US55953Q2021 |
| Category Code: | MSCU |
| TIDM: | MGNT |
| LEI Code: | 2534009KKPTVL99W2Y12 |
| OAM Categories: | 3.1. Additional regulated information required to be disclosed under the laws of a Member State |
| Sequence No.: | 96654 |
| EQS News ID: | 1179986 |
| End of Announcement | EQS News Service |