Webmoney Russian Non Bank Products & Services (part 4)
Mark Herpel
October 19, 2009
Webmoney is software which connects non bank consumers with payment providers, financial services and global business. This solution is truly a model for the rest of the world.
The Russian non bank financial environment is completely the opposite to what is found in the United States. Local shoppers do not have wallets packed with plastic cards and ultimately cash is king. A large part of the Russian population "opts out" of what Americans would view as a traditional banking relationship. These Russian consumers simply do not have bank accounts and donīt want them. Unlike non bank American consumers, this segment of the Russian population was not formed because of strict regulations, credit reporting and ID requirements. Russian consumers opt out because there still exists a lack of trust between everyday Russian citizens and banks. In addition, many people simply can afford the bank fees.
Living in America and "opting out" of a U.S. bank account effectively condemns a person to lower quality, more expensive alternative financial services and check cashing stores. The U.S. non bank consumer is charged exorbitant fees and generally forced into a very ugly financial experience.
NOT SO in Russia! Excellent options abound for non bank Russian consumers.
A Level Playing Field for Russian Consumers
There is a real competitive science to the Russian non bank payment systems and it was the digital currency Internet that seems to have leveled the global playing field with new modern payment products. In Russia, if you build a better payment system the world WILL beat a path to your door! The business WILL NOT get crowded out by regulations & banking monopolies. (we all have seen how the U.S. regulations crowded out and persecuted e-gold.com )
Over the last decade, Webmoney Transfer has built the best online payment system I have ever had the pleasure of using. Furthermore, after a few days in Moscow, we recognized that the digital currency side of the companyīs business, which receives the most exposure in western countries, is only a tiny part of the overall operation.
Webmoney Transfer is considered one of the premiere non bank digital currency systems in the world. The chart shown below of their sales growth should illustrate this point.
Obtaining credit and paying on time is touted as a way to get ahead in America. Plastic cards and the strict concept of managing your balances are pushed onto children as young as eight years old. American, consumers are compelled to use American banks and a good credit rating is the highway on which you travel & enjoy the "American Lifestyle". If you donīt have a bank account in America, you are not mainstream, you are the exception to the rule and treated as so. Expensive "check cashing stores" operate across the country in place of banks and service an ever expanding U.S. non bank market.
While a bank...is a bank...is a bank and the services they provide donīt differ very much in price or options, non bank digital currency systems such as Webmoney Transfer offer a variety of products and cater services specifically for customerīs needs. (no matter what country) Each jurisdiction and each identifiable group of Webmoney consumers receives special treatment. This type of non bank service is not available anywhere in the U.S.
U.S. banks are also permitted to discriminate between customers based on income, employment, past financial histories and credit worthiness. Russian non bank systems do not "filter" their customers with such tools. The companies do not limit use or access based on prior financial status or income. Some rural Webmoney users may only earn $10 per month and the system works very well for them. WMID account holders can receive earned income, conveniently access their funds, send payments to anyone around the world and maintain a secure financial account outside the conventional banking system. P2P payments and B2B payments are automatically supported through a standard Webmoney account. No bank account, no credit check and no expensive merchant services are ever needed.
There are several things to remember when discussing Russian financial business. Unlike U.S. banks, where a drivers license is the standard form of ID, all Russian banks require the Government issued passport as identification. The second thing to remember is that all financial transactions, whether occurring in a bank, ATM, business office or cash terminal are highly regulated. Cash transactions in Russia are reported just as they are across Europe including similar transactions limits. Starting next year in 2010, these reporting rules will become even more conservative and the financial regulations will be even more strict.
The Russian non bank financial environment is completely the opposite to what is found in the United States. Local shoppers do not have wallets packed with plastic cards and ultimately cash is king. A large part of the Russian population "opts out" of what Americans would view as a traditional banking relationship. These Russian consumers simply do not have bank accounts and donīt want them. Unlike non bank American consumers, this segment of the Russian population was not formed because of strict regulations, credit reporting and ID requirements. Russian consumers opt out because there still exists a lack of trust between everyday Russian citizens and banks. In addition, many people simply can afford the bank fees.
Living in America and "opting out" of a U.S. bank account effectively condemns a person to lower quality, more expensive alternative financial services and check cashing stores. The U.S. non bank consumer is charged exorbitant fees and generally forced into a very ugly financial experience.
NOT SO in Russia! Excellent options abound for non bank Russian consumers.
A Level Playing Field for Russian Consumers
There is a real competitive science to the Russian non bank payment systems and it was the digital currency Internet that seems to have leveled the global playing field with new modern payment products. In Russia, if you build a better payment system the world WILL beat a path to your door! The business WILL NOT get crowded out by regulations & banking monopolies. (we all have seen how the U.S. regulations crowded out and persecuted e-gold.com )
Over the last decade, Webmoney Transfer has built the best online payment system I have ever had the pleasure of using. Furthermore, after a few days in Moscow, we recognized that the digital currency side of the companyīs business, which receives the most exposure in western countries, is only a tiny part of the overall operation.
Webmoney Transfer is considered one of the premiere non bank digital currency systems in the world. The chart shown below of their sales growth should illustrate this point.
Obtaining credit and paying on time is touted as a way to get ahead in America. Plastic cards and the strict concept of managing your balances are pushed onto children as young as eight years old. American, consumers are compelled to use American banks and a good credit rating is the highway on which you travel & enjoy the "American Lifestyle". If you donīt have a bank account in America, you are not mainstream, you are the exception to the rule and treated as so. Expensive "check cashing stores" operate across the country in place of banks and service an ever expanding U.S. non bank market.
While a bank...is a bank...is a bank and the services they provide donīt differ very much in price or options, non bank digital currency systems such as Webmoney Transfer offer a variety of products and cater services specifically for customerīs needs. (no matter what country) Each jurisdiction and each identifiable group of Webmoney consumers receives special treatment. This type of non bank service is not available anywhere in the U.S.
U.S. banks are also permitted to discriminate between customers based on income, employment, past financial histories and credit worthiness. Russian non bank systems do not "filter" their customers with such tools. The companies do not limit use or access based on prior financial status or income. Some rural Webmoney users may only earn $10 per month and the system works very well for them. WMID account holders can receive earned income, conveniently access their funds, send payments to anyone around the world and maintain a secure financial account outside the conventional banking system. P2P payments and B2B payments are automatically supported through a standard Webmoney account. No bank account, no credit check and no expensive merchant services are ever needed.
There are several things to remember when discussing Russian financial business. Unlike U.S. banks, where a drivers license is the standard form of ID, all Russian banks require the Government issued passport as identification. The second thing to remember is that all financial transactions, whether occurring in a bank, ATM, business office or cash terminal are highly regulated. Cash transactions in Russia are reported just as they are across Europe including similar transactions limits. Starting next year in 2010, these reporting rules will become even more conservative and the financial regulations will be even more strict.
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