Communication restrictions hit businesses in Makhachkala.

Mobile internet outages in Makhachkala are disrupting cashless payment systems, depriving customers of a convenient payment method and reducing business revenue. Even market traders are reporting losses.

As reported by "Caucasian Knot," mobile internet restrictions have forced people to carry cash and significantly slowed down businesses, according to respondents from the North Caucasus Federal District. They reported problems with in-store and online purchases, calling a taxi, and searching for information. Residents of the North Caucasus have also experienced inconvenience due to the slowdown of Telegram.

Mobile internet outages have also impacted small businesses, entrepreneurs told a "Caucasian Knot" correspondent.

"Due to mobile network restrictions, acquiring machines are having problems, making it impossible to pay for purchases using QR codes or bank apps on a mobile phone. This is especially true for small retail outlets where acquiring is connected to a mobile network. In larger shopping malls, the problem isn't as acute, as they have wired internet and Wi-Fi," said coffee shop owner Zakir.

"Contactless payment terminals are working intermittently. The main problem in our area of ​​the city is that power outages are frequent, and all service is lost," said Osman.

"At our market, people usually pay in cash, but often ask to transfer money to a bank card. "Without mobile internet, customers can't pay for their purchases and leave, which leads to lost revenue and unsold goods," said market vendor Asiyat.

Zemfira, the owner of a small grocery store, explained that she can't afford the cost of purchasing and maintaining an acquiring terminal. It costs between 10,000 and 20,000 rubles, and maintenance costs an average of 2 percent of the transaction amount. "People mostly pay in cash or transfer to a card. But sometimes banks block cards because they consider regular payments suspicious," she said.

Many large retail chains aren't equipped with contactless payment terminals, noted Makhachkala resident Arsen. "I lived in Moscow for a long time and am used to always paying through a phone app. In Makhachkala, some large stores don't offer this option; apparently, they want to conceal their revenue. Recently, I wanted to buy household appliances and had to withdraw a large amount from an ATM first, but the bank immediately blocked the transaction, considering it fraudulent. Only after negotiating with the bank did they block my card," he said.

In January 2025, the Ministry of Economy and Territorial Development of Dagestan announced plans to increase the share of cashless payments over the next three years. The plan was to increase the share of cashless payments in the republic to 70% by 2027, according to Minister Gadzhi Sultanov, whose words are quoted by RBC-Kavkaz.

According to Sultanov, at the beginning of 2025, the volume of cash payments in Dagestan amounted to more than 500 billion rubles, while non-cash transactions reached only 115-120 billion. According to the minister, this gap requires active measures to encourage the transition to cashless payments.

In 2025, the Bank of Russia received more than 1,800 complaints from residents of Dagestan. Most frequently, people complained about denials of banking transactions and blocking, which is related to strengthened measures to combat financial fraud, RBC-Kavkaz reported on February 16, citing the press service of the regional branch of the Bank of Russia.