• Russian banks, cell operators team to offer phone top-ups at the ATM

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MOSCOW --  As competition in the Moscow's cellular phone market tightens, operators are trying to sell clients on the convenience of paying their bills at ATMs, among other new payment methods.

According to a report in the Moscow Times, No. 1 Moscow operator Vimpelcom, which operates under the Beeline brand, has made the payment issue one of the main themes of its new advertising campaign, which features the slogan "With Us It's Convenient!"

Vimpelcom spokesman Mikhail Umarov told the Times that Vimpelcom has seen significant growth in the number of payments through its Beepay system, which was introduced last August. It offers payment through ATMs, banks, Sedmoi Kontinent stores and the company's dealers.

Mobile TeleSystems, the No. 1 cellular operator nationwide -- which recently lost its leading position in the capital to Vimpelcom -- also offers payment options via ATMs.

Both Vimpelcom and MTS clients can pay at the companies' offices or through ATMs, bank transfers or payment machines, which deduct money directly from a client's bank account. Another option offered by both companies is to register their debit or credit card with the operator and make payments via mobile phone, a call center or the Internet.

Major retail banks Avtobank and Pervoye OVK allow payments at their branch offices or ATMs.

Avtobank lets subscribers of MTS, Vimpelcom, Megafon, Moscow Cellular Communications and North-West GSM in St. Petersburg pay for services through its 66 ATMs in Moscow and seven in St. Petersburg using Visa or Europay credit cards. Pervoye OVK offers similar payment services using its 300 ATMs and 50 branch offices in Moscow, but only to Vimpelcom subscribers.

Neither bank charges commission to customers, but operators pay the banks commission.

"For the bank, it's another important step in developing their plastic-card business," said Olga Pershina, spokeswoman for Pervoye OVK.

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