eMoney 2011 in Russia: New stage and new opportunities
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- The document summarizes a press conference by the Russian Electronic Money Association on e-money trends in 2011 and the first quarter of 2012. - Key developments included a new law on the national payment system that established regulations for payment system operators and requirements for processing centers and chargebacks. - Results from 2011 showed growth in e-money volumes, top-ups, and number of active wallets, though growth was less than expected. Most e-money payments were for online games, entertainment and telecom services by number, but financial instruments by value. - Upcoming dates were outlined for operators to comply with banking regulations and further changes were anticipated regarding prepaid cards and customer due diligence procedures.
eMoney 2011 in Russia: New stage and new opportunities
- 1. 10 April 2012 Press-conference Russian Electronic Money Association E-Money 2011 (& 1Q 2012): New Stage and New Opportunities Victor Dostov President Not to be cited without proper reference
- 2. For payment system in England “Bloody Sunday” was the main event of 1125
- 3. Fight for Genuine Money In 1125 Henry I summoned the mint-men who had to prove their integrity. Not all kept their limbs…
- 4. Customs became softer in 2011: Law “On National Payment System”
- 5. 29 September 2011 • Coming into force 29 September 2011 • All Operators to become credit institutions 30 June 2012 • Registration of Payment system Operators • Processing centers to become domestic 29 December 2012 • Payments are subject to chargebacks
- 6. 1. Trends and Developments 2. Figures
- 7. Law “On National Payment System” Next important date is 29 September 2012. Text is satisfactory, yet it still has technical ambiguities and few errors Scope of regulation turned out to be wider than expected: integrators, exchange services, gift certificates, etc.
- 8. Law “On National Payment System” First results are positive: big players and foreign businesses are coming to the market. Some legal arrangements were formalised. Coming into force is gradual Long-term costs of ‘banking’ regulation is yet unclear.
- 9. Law “On National Payment System” Audit of banking regulation Review of Regulation on cashless settlements, Regulation on issuing bank cards and transaction made with payment cards, Requirements on service continuity Since 2013: Payment System Operators, unconditioned chargebacks
- 10. Latest debates: - Future of the pre-paid cards
- 11. 1. Simplified CDD • Non face-to-face CDD is long overdue 2. CDD performed by agents • Applicable for certain type of transaction 3. Thresholds • Threshold of 15 000 RUR is extended to e-money and similar products. 4. New FATF Recommendations (February 2012) 5. Working Group on simplified CDD in AML/CFT Authority Customer Due Diligence 2.0
- 12. What did we expect? E-Purses volume, bln. RUR: 40 → 70 → 140(?) 2009 2010 2011 (forecast)
- 13. What happened? • Lots of developments – from soaring growth in mobile commerce to payments for state services
- 14. Top-ups, bln. RUR 70 → 125 Results of 2011
- 15. Number of active wallets, mln. 30 → 34 Results of 2011
- 16. What do Customers pay for?
- 17. Number of payments Online games, entertainment, social networks, lotteries (38%) Professional Web- services (3%) Telecoms: Internet and mobile accounts (36%) Financial instruments (11%) Digital goods and coupons (8%) Physical goods (1%) Payments to the budget (1%) Utilities and housing maintenance services (1%)
- 18. Value of payments Financial instruments (57%) Digital goods and coupons (7%) Professional Web- services (5%) Utilities and housing maintenance services (1%) Physical goods (1%) Payments to the budget (1%) Telecoms: Internet and mobile accounts (11%) Online games, entertainment, social networks, lotteries (17%)
- 19. Not to be cited without proper reference. For more information on reproduction rights or other inquiries, please, contact: shoust@npaed.ru