Russia's second-largest retailer Magnit has added Credit Broker online service, being the first retailer in the country to provide such service and seeing it as a new stage in development of its own super app, the company said in a press release.

The new service allows any user of the chain's mobile app to apply for a credit card via Magnit Pay and receive a quick response from partner banks connected to the service. It fits into the trend of retailers adjusting to declining incomes of consumers, such as development of discount strategies and expansion of private labels. 

As followed by bne IntelliNews, on the digital front Magnit is trying to catch up with its rival X5 Group that emerged as the largest e-grocer in Russia in 2020. Magnit's 2021-2025 strategy includes building a leading e-grocery platform capable of handling 5%+ turnover with integration into an omni-channel consumer experience.   

Magnit, in co-operation with Russia's second-largest bank VTB, launched its Magnit Pay service with a virtual card in September 2020 as part of its loyalty programme, and added an array of payment services to it in 2021.

Magnit reminds that in spring 2020 the company became the first retailer in Russia to add mobile, Internet and TV payment services, as well as a feature enabling transport cards to be topped up, to its loyalty programme application, in addition to Magnit Pay card service.

"We hope that the new [credit brokerage] service – coupled with Magnit Pay that was launched earlier – will contribute to higher customer loyalty towards Magnit brand," the CEO of Magnit Jan Dunning commented.

As followed by bne IntelliNews, X5 Group also reportedly plans to set up a new unit providing financial services as rivalry in the fintech segment in Russia intensifies.

At the same time, for Magnit optimisation efforts in the traditional offline segment have also paid off, with the retailer showing a surprising pick-up in sales and lower costs in 2020, and the analysts are improving their outlooks on the company. 

In May Magnit said it is in a deal to take over rival Dixy and add over 2,500 supermarkets to its distribution network, almost doubling its size in the process.