![]() Hence once can see why Qiwi is very much on the Central Bank's radar. Today, banks can print money, which is a tremendous power, however no bank can print Bitcoin directly. Furthermore, digital currencies, though not directly related to this issue also present a challenge to the fiat money of central banks. This action may give the Russian state greater control and insight over transactions. and ongoing internet regulation in China to name a few examples.Īs such, it may well be that the CBR wishes to tamp down on the free flow of payments, especially cross-border payments. We are seeing a general trend of a more regulated internet, with different regions taking different approaches, from the General Data Protection Regulation (GDPR) in Europe to debates over Section 230 and net neutrality in the U.S. However, the issue at stake is material, Qiwi is still challenged even if this is an industry-wide trend. The small size of the fine suggests that Qiwi may be correct that the issue is not so much Qiwi's practices as general electronic payment regulation. In addition, Qiwi now faces potential class action lawsuits, likely due to not disclosing these risks to investors early enough. Qiwi argues that these actions are more a reaction to the Russian bank's attitude towards digital payments in general, "driven by an evaluation of the overall approach of the CBR to the interpretation of the applicable e-payments regulation", rather than Qiwi in particular.Įither way, the actions are material and Qiwi estimates a 33% to 40% impact of the enforcement actions on Qiwi payment service net revenue had these restrictions been in place for the first 9 months of 2020 (source: 12/9/20 6-K). Prevention of money transfers to prepaid cards from corporate accounts.Suspension or limitation of most payments to foreign merchants.Photo by Jaunt and Joy on Unsplash Central Bank AuditĪfter an audit, the Russian Central Bank has taken two major actions against Qiwi, and imposed a nominal ($150,000) fine, these actions are: Only if this regulatory action proves to be an opening salvo from the regulator against Qiwi, should the shares be avoided, though that appears an unlikely scenario. Secondly, even taking the regulatory actions at face value without mitigation, Qiwi appears fairly priced offering some margin of safety to investors. These mitigations may roughly halve the impact compared to Qiwi's initial estimates, which appear embedded in its share price. This primarily because Qiwi in a quick response to the actions described the financial impact before any mitigating actions. In early December, central bank regulatory actions hit the company materially. PayPal supports processing of Visa QIWI Wallet payments so merchants will continue to receive seamless transaction processing and receipt of funds.Qiwi ( NASDAQ: QIWI) is an inexpensive Russian fintech play. QIWI Wallet can be used to pay for over 250 million items offered by cross-border sellers on eBay to consumers in Russia. QIWI Wallet in Russia is eBay's first alternate payment option.” ![]() ![]() By adding a locally recognized, immensely popular payment method to eBay in Russia, we are connecting shoppers in more ways than ever before with eBay merchants around the world. Vladimir Dolgov, Head of eBay Marketplaces in Russia, said: “This is a significant strategic milestone for eBay in Russia which demonstrates our commitment to making online shopping safe and convenient for Russian consumers. Given an estimated 70 percent of all commerce transactions in Russia – online and offline – being settled in cash, the new payment service is expected to open eBay to even more online shoppers. Users can chose a suitable interface from a range of options like mobile and social network apps, website or QIWI kiosk. QIWI Wallet is easily topped-up using a wide range of channels: by cash in over 100 000 QIWI’s kiosks, via credit or debit cards, mobile phone balance or electronic money. The new service, which becomes an additional payment option on eBay along with PayPal and credit cards, will allow eBay customers to make online purchases in a simple and secure manner. In a press conference in Moscow, eBay and PayPal announced that from early November on, all Russian eBay customers will be able to pay for their purchases with QIWI Wallet. EBay and PayPal have combined to launch a new payment service on eBay in Russia in association with Qiwi, a local Russian payment provider that helps customers buy online as if using cash. ![]()
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