- The document summarizes a press conference by the Russian Electronic Money Association on e-money trends in 2011 and the first quarter of 2012. - Key developments included a new law on the national payment system that established regulations for payment system operators and requirements for processing centers and chargebacks. - Results from 2011 showed growth in e-money volumes, top-ups, and number of active wallets, though growth was less than expected. Most e-money payments were for online games, entertainment and telecom services by number, but financial instruments by value. - Upcoming dates were outlined for operators to comply with banking regulations and further changes were anticipated regarding prepaid cards and customer due diligence procedures.

1. 10 April 2012
Press-conference
Russian Electronic Money Association
E-Money 2011 (& 1Q 2012):
New Stage and New Opportunities
Victor Dostov
President
Not to be cited without proper reference

2. For payment system in England
“Bloody Sunday” was the main event of 1125

3. Fight for Genuine Money
In 1125 Henry I summoned the mint-men who had to prove their integrity.
Not all kept their limbs…

4. Customs became softer in 2011:
Law “On National Payment System”

5. 29 September
2011 • Coming into force
29 September
2011
• All Operators to become credit
institutions
30 June 2012
• Registration of Payment system
Operators
• Processing centers to become
domestic
29 December
2012
• Payments are subject to
chargebacks

6. 1. Trends and
Developments
2. Figures

7. Law “On National Payment System”
Next important date is 29 September 2012.
Text is satisfactory, yet it still has technical ambiguities
and few errors
Scope of regulation turned out to be wider than expected:
integrators, exchange services, gift certificates, etc.

8. Law “On National Payment System”
First results are positive: big players and foreign businesses are
coming to the market. Some legal arrangements were formalised.
Coming into force is gradual
Long-term costs of ‘banking’ regulation is yet unclear.

9. Law “On National Payment System”
Audit of banking regulation
Review of Regulation on cashless settlements,
Regulation on issuing bank cards and transaction made
with payment cards, Requirements on service continuity
Since 2013: Payment System Operators, unconditioned
chargebacks

10. Latest debates:
- Future of the pre-paid cards

11. 1. Simplified CDD
• Non face-to-face CDD is long overdue
2. CDD performed by agents
• Applicable for certain type of transaction
3. Thresholds
• Threshold of 15 000 RUR is extended to e-money and similar products.
4. New FATF Recommendations (February 2012)
5. Working Group on simplified CDD in AML/CFT Authority
Customer Due Diligence 2.0

12. What did we expect?
E-Purses volume, bln. RUR:
40 → 70 → 140(?)
2009 2010 2011
(forecast)

13. What happened?
• Lots of developments –
from soaring growth in mobile commerce to
payments for state services

14. Top-ups, bln. RUR
70 → 125
Results of 2011

15. Number of active wallets, mln.
30 → 34
Results of 2011

16. What do Customers pay for?

17. Number of payments
Online games,
entertainment, social
networks, lotteries
(38%)
Professional Web-
services (3%)
Telecoms: Internet and
mobile accounts (36%)
Financial
instruments
(11%)
Digital goods and
coupons (8%)
Physical
goods (1%)
Payments to
the budget
(1%)
Utilities and housing
maintenance services
(1%)

18. Value of payments
Financial
instruments
(57%)
Digital goods and
coupons (7%) Professional Web-
services (5%)
Utilities and housing
maintenance services
(1%)
Physical
goods (1%)
Payments to
the budget
(1%)
Telecoms: Internet and
mobile accounts (11%)
Online games, entertainment, social
networks, lotteries (17%)

19. Not to be cited without proper reference.
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