Our global retail network keeps growing. The idea is that we are a platform and a turn-key technology that is openly offered. A number of independent dealers and entrepreneurs, who build their business on WM and with WM is increasing constantly.
(Q) I'm interested in your prepaid Webmoney cards. Prepaid cards are huge business in places like the United States. When a local card seller is near, this method of funding seems most convenient for all users. Do a lot of people buy & use these cards?
Yes, exactly, we have grown so fast mainly due to the easy availability of the cards all over our territories. By the way, the cards can be used independently, without opening an account with WM - many merchants and services accept WM-cards pin-codes via phone IVR systems, thus people without any access to Internet at all can use WM as a payment means. Every card as well serves as a Paymer.com check , that is it can be split, merged or forwarded to other customers. Here we go - pure electronic money.
(Q) I read from your web site that prepaid Webmoney cards are available from automatic vending machines in Russia and Ukraine? I am very curious where you position a card vending machine. Are they located in shops, banks, subway stations or airports?
There is a boom of such cash-in machines in Russia, one of the reasons is that people are still mostly unbanked. You can find such cash-in in every shop, cinema, even in pedestrian subway. Of course the headliners are mobile network operators, but e-currencies and internet services are also widely presented.
(Q) I have some online friends and associates who may want to become involved distributing WM cards in the US and Europe. Does Webmoney Transfer allow global users to become distributors of WM prepaid cards? What is required?
Nothing. Anybody can issue pin-codes from your Webmoney purse using service Paymer.com and start selling them. Our commission is 0.3%-1%, depending on volume.
(Q) I see that Webmoney Transfer requires all Exchanger Agencies to be verified merchants and hold WM Personal Passports. Why do you take this additional step and to identify and 'know' who is transacting in Webmoney? Why does Webmoney require independent agents to disclose information on themselves?
The logic is very simple - to give the established exchange businesses the possibility to work comfortably and within current legislation [laws & regulations]. Suppose somebody moved dirty funds from WebMoney to another payment system or withdrew them; then, a court or other authority would ask for traces of this operation. If the transaction came through verified exchange agent, then this agent would indicate the receiver's account in another system, of the person who received the cash, we believe him and don't treat him as a beneficiary. But if traces breaks into anonymous account, this owner will bear the liability to prove to us and to the court that he is not a true and final beneficiary.
(Q) I hear this statement a lot from new e-gold users when they want to make a retail purchase online, "How do I know an e-gold merchant will deliver the items after I pay them in e-gold?" What is a Webmoney coded transaction and how does that help protect buyers using WM?
WebMoney code-protected transaction are used exactly for such transactions. You transfer funds to the merchant protected by a code. Funds are withdrawn from your account so the merchant sees that you are a fair customer. The merchant can't do anything with these funds unless you have received the goods/service you paid for and you will reveal the code to him. In case this measure is not enough, seller and buyer can establish mutual WM trust: http://trust.webmoney.ru/ .
(Q) I think one of the smartest tools the Webmoney system offers is the WMpassport. I see from your web that there are more than 10 variations of Webmoney Passports. Which Passport do must users have?
Internet-based currency, even being not formally linked to banking system, should comply with AML[Anti Money Laundering] rules and recommendations; any e-currency without authentication will face troublesome questions from the side of legal authorities. We allow users to register as alias, but for some operations, for example withdrawals to the bank account, you should get verified. There are three main types of passports: personal - it means you send us a notarized application; initial - you are authorized by a friend, who holds a personal passport; formal - you filled a form with passport data, which are verified at our side. Several passport types - Capitaller, Service, Operator etc. - designated to mark out WebMoney system sites and services.
Q) Every time I visit the Webmoney Transfer web site, I am amazed at the size and structure of your operation. Even from just a few years ago, it seems Webmoney has grown and added so many new features. The fast growth that you are now experiencing, will Webmoney ever grow too large and clash with government regulations in it’s home country? Do you have plans to ever open company offices in the United States or Canada?
Here we face a well-known contradiction between being local or going global. DGS work everywhere - [however]and are not treated as 100% legal everywhere too. We have developed separate legal models for each currency, individually tailored by our lawyers for local legislation and market peculiarities. For example, WMR are circulating as electronic bank bearer checks, WMU - electronic rights of demand for the bank deposit, Byelorussia has a regulation covering e-money, and WM fall under this regulation. We are interested in US and Canada market, but after 9/11 penetration to these countries is extremely difficult. The requirement of the US banking legislation to identify every participant of the transaction, even for micro payments are by default contradicting with the nature of electronic cash. Even in Europe these requirements are not so tough and you can make transactions with amounts less than 150 Euro easily without long and complicated verification procedures
(Q) I hear this statement a lot from new e-gold users when they want to make a retail purchase online, “How do I know an e-gold merchant will deliver the items after I pay them in e-gold?” What is a Webmoney coded transaction and how does that help protect buyers using WM?
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