PayPal Launches Ruble Payments
Electronic payments giant PayPal launched services in Russian rubles Tuesday, joining forces with 13 country’s leading Internet retailers in a move aimed at tapping Russia’s growing online retail market.
Russia’s Internet-savvy middle class is increasingly turning to online stores, but many are apprehensive about handing over their credit card details. PayPal hopes to assuage those fears and simplify the payment procedure.
“Our task is to make Internet shopping easy and simple for the Russian clients,” said Vladimir Malugin, Russia regional director for PayPal, a unit of eBay Inc.
Morgan Stanley, an investment bank, forecasts that revenue at Russian Internet stores will grow by 35% annually through 2015 to reach $36 billion.
Russian consumers will now be able to use PayPal to snap up high-end branded clothing and footwear on KupiVIP.ru or books at leading online seller Ozon.ru, the largest Russian stores in their categories.
PayPal opened its Moscow office one year ago. The country’s Central Bank changed its rules earlier this year to allow firms other than banks to carry out transactions.