PayPal stopped internal transfers in Russia

International payment service PayPal July 31, stopped internal transfers in Russia, users will now be available only for international payments.

Payment service in early July, officially announced the termination of the money transfers within the Russian Federation. Such a decision PayPal accepted against the background of changes in the law "About national payment system". Now the operators of the turnover of electronic money and their organization may not transfer data on domestic remittances abroad or provide access to such information from the territory of a foreign state.

The new rules do not apply to international wire transfers, and also for cases where the transmission of information required for the consideration of applications clients on the use of electronic means of payment without their consent.

Termination of the service for domestic transfers will lead to significant changes in the market, it's hard to call this news is positive, said RIA Novosti Chairman of the Association of market participants of electronic money and remittances Victor Dostov. "PayPal came to Russia in 2011 due to the appearance of a very favourable regulation of electronic money. For 9 years the situation has changed, and due to the tightening of legislation with international player is forced to partly reduce their activities," - said the expert.

According to the analyst "Factory investment ideas" BCS Yegor Dachtler, the refusal from PayPal transfers within Russia will not have a material impact on the financial results of the company.

"The market is unlikely to affect significantly, users will switch to competitors. I think that in General considerable inconvenience citizens will not experience. According to the letter PayPal sent by the company to the Central Bank, the share of profit for domestic operations amounted to only 4%. Therefore, for the financial performance of the company it creates significant risks," said Dachtler.