Earlier this month Vladimir Malugin, PayPal’s regional director for Russia, announced the addition of the ruble as an official PayPal currency. Starting from mid-September Russian users of PayPal will thus be able to pay for purchases in stores, accept payments, transfer money to other users’ accounts, and withdraw money from bank accounts in the Russian national currency.
This past spring the international payment operator received its license to work in Russia as a “non-banking credit organization.” So far Russian users could use the international electronic payment system but only via other currencies. In particular, they could not replenish their PayPal account directly from their Russian bank accounts.
PayPal’s next step in Russia is to have its virtual currency accepted by Russian e-commerce companies.
Industry experts and market players have mixed views on whether or not PayPal could change the game in the Russia’s e-commerce and e-payment markets. Many have underscored that the US giant will be competing with such well-established players as WebMoney and Yandex Money. The latter has been operating for years on the market with local user bases exceeding 13 million – compared with an estimated 1 million Russian users for PayPal to date.
However, in addition to being accepted worldwide – which is usually not the case for its Russian competitors – PayPal brings new interesting features. According to Malyugin, “PayPal’s Payment Protection Program will be extended to Russian people and stores. This program allows users and stores to use PayPal to resolve mutual claims. If one party is not satisfied with the transaction, then PayPal will help to resolve the situation.”
Some Internet retailers are showing interest. “It would be interesting to integrate PayPal and see the impact on sales. It is believed that the PayPal Buyer Protection program adds credibility to an online store, and consumer confidence is still lacking in all Russian e-commerce,” said Vsevolod Strakh, General Director of the online store Sotmarket.
PayPal did not reply to EWDN’s request for comments.
Source: Digit.ru (RIA Novosti).
- RUSSIAN E-COMMERCE AND PAYMENTS REPORTS – EWDN has published an in-depth research on Russia’s e-commerce and e-payment industries in partnership with leading universities and consultancies. To receive free insights or to order the full version (2013 edition), please contact us at [email protected].
