PayPal launches payments in Russian Rubles
eBay Inc. are continuing their assault on emerging markets across the planet. Yesterday, it was announced that PayPal will now be processing payments in Rubles. It’s all part of a move to tap into the burgeoning Russian ecommerce market. Predictions from bank Morgan Stanley suggest Russian ecommerce will grow by 35% annually into 2015 and reach $36 billion.
According to the Wall Street Journal: “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.”
PayPal has teamed up with 12 of Russia’s top online retailers including KupiVIP.ru and Ozon.ru, to offer safe payments to Russian consumers. Vladimir Malugin, Russia regional director for PayPal said: “Our task is to make internet shopping easy and simple for the Russian clients.”
This isn’t a surprise. Russia has a strong and growing economy which is increasingly of interest to global investors and eBay Inc. has had its eye on Russia for at least a year since it opened a Moscow office. Earlier in 2013, the Russian Central Bank liberalised laws to permit financial transactiosn to be made by organisations other than banks. PayPal have clearly taken adevantage of that rule change.