NASDAQ-listed Russian payment operator QIWI announced today the acquisition of the e-currency business of Mail.ru Group, a major Russian Internet group. After the completion of transition period all Money.Mail.Ru transactions will be performed by QIWI. The terms of the deal, which is presented as part of a “long term strategic partnership,” have not been disclosed.
[email protected] (Money.Mail.Ru in English) is not among the main electronic currencies on the market, but it enjoys a non negligible 6% reach among Internet users in major Russian cities, according to a TNS survey in early 2014.
This e-currency is used mainly for online games as well as for online purchases of software, virtual goods, financial and other services. It is not widely used, however, for purchases of physical goods, with only a few dozens of sites accepting it, notes East-West Digital News in its recent study on the Russian e-commerce and e-payments markets.
Dmitry Grishin, CEO and Co-Founder of Mail.Ru Group, conceded that [email protected] “has never been strategic business for us,” while “it became obvious that efficient development in this field required maximum focus.”
QIWI is a very specific player on the Russian electronic payment scene. In the mid 2000s, it first developed a large network of physical cash-in kiosks (also known as payment terminals). Initially designed to accept payments for mobile phone and utility bills, but now used for any type of payment operation, these kiosks exist on virtually every street corner or metro station in Russian cities and towns. QIWI quickly asserted itself as market leader with 169,000 machines of different kinds across Russia in 2013, according to EWDN’s research.
Over the last few years, QIWI has gone online, providing its users with electronic wallets and cooperating more closely with e-retailers. QIWI has introduced several payment instruments partnership with Visa, including three payment cards and the Visa QIWI Wallet, which was created in November 2012.
QIWI’s main competitors on the e-currency market are WebMoney and Yandex Money. Among other, less widespread e-currencies are Moneta.ru, Money Mail, Rapida Online, W1, WebCreds, Unistream Money, and some others, according to EWDN’s research.
