Non Bank Payments: Pay Pal or WebMoney (part 3)

The Pay Pal online account is ALWAYS funded by the consumer's credit card or bank account (strict limits & verifications apply). This “digital to bank & bank to digital” funding process illustrates how all U.S. funds move between national currency and mainstream digital payment accounts. The credit card or the bank account of the owner is ALWAYS the original funding source. Funds which exit a PayPal digital account back to the user are generally sent by electronic fund transfer (wire) to the account holders bank.

All U.S. online digital payment accounts are only able to pull funds from existing regulated bank products. There is no way to use cash money to fund an online U.S. payment account and there are no Pay Pal prepaid cards which could be purchased for cash. In the United States, it is not permitted to deposit or withdraw digital payment funds outside of the normal regulated banking procedures. (no third party agents) Consequently if you don't have a bank account or credit card you are out of luck operating a U.S. digital payment account.

Compared to the U.S. market, Russian non bank payments operate on the other end of the cash spectrum. The restrictions placed on U.S. consumers by companies like Pay Pal are basically nonexistent in Russia. The Webmoney Transfer system was created for those consumers without any bank account or plastic cards. As a Webmoney customer with no bank account there are a wide variety of convenient cash funding solutions available through third party agents. (Webmoney even offers prepaid funding cards) Today, more than 30% of the total WMR (ruble purse) deposits come from cash-in terminals.

American regulators ask, “how can you permit these cash deposits?” While Russians citizens ask, “how is it possible you only offer funding through a bank?”

Perhaps these are both valid questions.

This Netto Pro technology is constantly being improved and upgraded. While touring their offices Andrey demonstrated a preview of their newest model called Netto Check which will be in operation later this year. This is an amazing machine which includes the latest biometric technology fingerprint scanner, bar code readers and touch screens. This company is quickly expanding their client base into Europe and if you are interested in learning more please take note. http://www.nettopro.ru (Special thanks to Andrey Klyashtorny for taking time to meet with me)