Looking for an alternative: PayPal will limit internal transfers in Russia
On August 31, 2020, the international payment system PayPal stops internal transfers in Russia. What does this mean for business and for ordinary people?
The PayPal website says that Russian users are no longer able to transfer money across Russia to both companies and individual users. The payment service is preparing a reorientation to international payments. Any user will be able to use PayPal services as usual to make payments to foreign PayPal users and to receive payments from foreign PayPal users. The service for sending funds to users within the country is no longer available. Russian PayPal users will no longer be able to send money to PayPal users in Russia or receive payments from PayPal users in Russia.
In July 2020, amendments to the law "On the National Payment System" came into force, which fixed the obligation of electronic money operators to store data on domestic transactions exclusively on the territory of the Russian Federation, as well as prohibit the provision of access to such information from the territory of foreign states. PayPal continues to operate in Russia, but the business model is changing towards international cross-border transactions and servicing foreign payments. As we can see, during the pandemic and now, the most popular direction remains international. Of course, such a large well-known international payment system as PayPal could not fail to respond to the global challenge and the needs of people and businesses.
Payment cards are very flexible electronic money transfer systems around the world, however, there are country risks and legal restrictions for them as well. When choosing a payment card, be sure to pay attention to the license of this payment system, the country of issue and the licensing authority.
The Antwort team advises its clients to consciously approach the choice of bank and payment system. To begin with, read the legal information about the payment, its regulation, payment terms and the types of services offered. The next step will be to check the availability of the appropriate license from the regulator. And of course, do not forget about the tariffs. It is necessary to conduct a full due-diligence of the system through which you plan to work. Over the past six months, many payment systems have lost their licenses, and some of them have simply suspended work and blocked user funds.
Our specialists offer only effective payment solutions, help you choose a stable payment system with a good reputation. Do not risk your money, contact professionals at the stage of choosing a bank or payment system. Antwort Law values its customers and always helps to make the right choice for your business!