WebMoney

WebMoney users' funds are stored in a "purse", which holds electronic money corresponding to an underlying asset, such as a currency. The underlying assets for WebMoney units are held by a global network of companies that act as guarantors for the payment system.{{cite book|title=A History of Digital Currency in the United States: New Technology in an Unregulated Market|last=Mullan|first=Philip Carl|date=2016|publisher=Palgrave Macmillan|isbn=9781137568700|pages=252–259}} Guarantors accept deposits in the underlying assets and issue the corresponding WebMoney units.{{cite news|title=Is WebMoney the Next Liberty Reserve?|last=Finberg|first=Ron|date=2013-06-19|access-date=2018-02-28|url-status=live|url=https://www.financemagnates.com/forex/brokers/is-webmoney-the-next-liberty-reserve/|archive-url=https://web.archive.org/web/20180228021455/https://www.financemagnates.com/forex/brokers/is-webmoney-the-next-liberty-reserve/|archive-date=2018-02-28}} WebMoney Transfer can be used for peer-to-peer payments, and includes an escrow system. It charges 0.8% of the transacted amount in fees, up to a maximum fee of €50.

WebMoney provides an application called WebMoney Keeper for using their payments services, for Microsoft Windows,{{cite web|url=https://www.wmtransfer.com/eng/information/manage/winpro.shtml|work=WebMoney|title=Keeper WinPro (Classic)|access-date=2018-02-27}} Windows Phone, Android, iOS, and Blackberry.{{cite web|url=https://www.wmtransfer.com/eng/information/manage/mobile.shtml|title=Keeper Mobile|work=WebMoney|access-date=2018-02-27}} In 2006, security researcher Kris Kaspersky criticised WebMoney Keeper Classic for Windows, as it installed a low-level device driver that allowed direct access to the I/O ports and accessed the hard disk directly using ATA commands instead of via the operating system.{{cite magazine|last=Kaspersky|first=Kris|author-link=Kris Kaspersky|trans-title=The Naked Truth About WebMoney|issue=94|url=https://xakep.ru/issues/xa/094/|magazine=Hacker|title=Голая правда о WebMoney|date=2006-10-01|archive-url=https://web.archive.org/web/20140904004537/http://xakep.ru/issue/xa-094|url-status=live|archive-date=2014-09-04|access-date=2020-05-30|pages=62–68}}

The company was founded in November 1998 in Russia{{cite web|url=https://www.thepaypers.com/interviews/exclusive-interview-vladimir-sharko-director-international-business-development-webmoney-transfer/745823-38|title=Exclusive Interview: Vladimir Sharko, Director, International Business Development, WebMoney Transfer|work=The Paypers|language=en|date=2011-11-14|access-date=2020-05-29|archive-date=2016-08-10|url-status=live|archive-url=https://web.archive.org/web/20160810202603/https://www.thepaypers.com/interviews/exclusive-interview-vladimir-sharko-director-international-business-development-webmoney-transfer/745823-38|editor-last=Muel|editor-first=Melisande}} as a money transfer system for United States dollars, in the wake of the 1998 Russian financial crisis that had led to increased US dollar use in Russia.{{cite book|last=Ghernaouti|first=Solange|author-link=Solange Ghernaouti|title=Cyber Power: Crime, Conflict and Security in Cyberspace|chapter=Chapter 8: The Cybercriminal's Toolkits|date=2016-04-19|publisher=CRC Press|isbn=9781466573055|page=248}}{{cite book|last=Mullan|first=Philip Carl|title=The Digital Currency Challenge: Shaping Online Payment Systems through US Financial Regulations|chapter=WebMoney Transfer|isbn=9781137382559|date=2014|publisher=Palgrave Macmillan}}

In November 2015, WebMoney Europe Ltd, based in Cambridge, United Kingdom, was granted an FCA licence to issue e-money within the European Economic Area.{{Cite news|url=https://www.finextra.com/pressarticle/62163/webmoney-gets-european-e-money-license|title=WebMoney gets European e-money license|last=Finextra|date=2015-11-17|work=Finextra Research|access-date=2018-02-09|language=en}} On 01-01-2021, the company terminated its agreements with all WebMoney EUR wallet holders as a result of Brexit.{{Cite web|url=https://wiki.wmtransfer.com/projects/webmoney/wiki/WME_EU_License_Notice|title=WME EU License Notice|date=2020-10-29}}

In 2019, Sberbank said that WebMoney had joined its instant transfer ecosystem, allowing clients to make instant transfers from Sberbank cards to WebMoney purses and vice versa. The recipient’s phone number (which the card or purse is tied to) is needed to transfer funds.{{Cite web|url=https://www.finextra.com/pressarticle/77372/sberbank-customers-can-now-transfer-money-from-their-cards-using-recipient-phone-number|title=Sberbank customers can now transfer money from their cards using recipient phone number|date=2019-02-22|website=Finextra Research|language=en|access-date=2019-07-31}}

In March 2019, the international settlement system WebMoney introduced a video identification system for customers. {{Cite web |url=https://profile.ru/news/finance/webmoney-zapuskaet-sistemu-identifikacii-klientov-po-video-132789/ |title=WebMoney запускает систему идентификации клиентов по видео|author=|website=profile.ru|date=|publisher=}}

The WebMoney Transfer system offered the solution of accepting payments via QR code for restaurants and shops. Customers need to scan a QR code displayed on the cash till screen and confirm the payment. In 2019, Burger King Russia has partnered with WebMoney Transfer to integrate QR code payments for customers.{{cite web|url=https://www.thepaypers.com/mobile-payments/burger-king-webmoney-team-up-for-qr-code-payment-solution/777398-16|title=Burger King, WebMoney team up for QR code payment solution|website=www.thepaypers.com|language=en|access-date=2019-07-08}}

On February 11, 2022, the Central Bank of Russian Federation revoked the license of KKB Bank JSC, the guarantor and the settlement bank for WebMoney's Russian ruble wallets, freezing WebMoney's funds on KKB's accounts.{{cite web | url= https://tass.com/economy/1401755 | title = WebMoney halts operations with Russian wallets from February 11 | publisher = TASS | date = 2022-02-11 | access-date = 2022-02-12}}{{cite web | url= https://www.akm.ru/eng/news/the-central-bank-revoked-the-license-of-the-astrakhan-bank-kkb/ | title = The Central Bank revoked the license of the Astrakhan bank "KKB" | publisher = AK&M Information Agency | date = 2022-02-11 | access-date = 2022-02-12}}

In June 2013, the Ukrainian government seized computer equipment from the Ukrainian guarantor and froze ₴60 million (US$7.5 million) of funds residing on guarantor's accounts in Ukraine, causing Ukrainian WebMoney transactions to be blocked. Officials of the Ministry of Revenues and Duties of Ukraine said that there were major irregularities in the operations of the company acting as the Ukrainian guarantor, and that the rules of the operation of the payment system were not agreed with the National Bank of Ukraine.{{cite web|title=UAH 60 mln of Ukrainians blocked in WebMoney by tax authorities|url=http://qha.com.ua/uah-60-mln-of-ukrainians-blocked-in-webmoney-by-tax-authorities-127536en.html|work=QHA|access-date=2014-12-19}}{{cite web|title=Ukraine freezes WebMoney bank accounts|url=http://dgcmagazine.com/ukraine-freezes-webmoney-bank-accounts/|last=Dixon|first=Julia|work=DGC Magazine}}{{cite web|title=WebMoney Ukraine says tax evasion charges are 'absurd'|url=http://www.rapsinews.com/news/20130614/267768004.html|date=2013-06-14|publisher=Russian Legal Information Agency|access-date=2018-02-27}} The ministry described WebMoney as an "illegal system" that was suspected of being used for money laundering and tax evasion, and the central bank said that WebMoney did not have a licence to operate in Ukraine.{{cite web|title=WebMoney says Ukrainian arm resumes transactions|url=http://en.interfax.com.ua/news/economic/157341.html|publisher=Interfax-Ukraine|access-date=2018-02-27}} WebMoney transactions resumed in Ukraine the following week.

In March 2015, the Ukrainian guarantor's bank accounts were released after a court ruling. Later that year, the National Bank of Ukraine{{Cite web|title=Внутрішньодержавні платіжні системи та міжнародні платіжні системи, платіжними організаціями яких є резиденти|url=http://www.bank.gov.ua/control/uk/publish/article?art_id=7746551&cat_id=8436158|date=2015-05-21|archive-date=2017-08-28|archive-url=https://web.archive.org/web/20170828145729/http://www.bank.gov.ua/control/uk/publish/article?art_id=7746551&cat_id=8436158|url-status=dead|website=National Bank of Ukraine|language=uk|access-date=2016-06-15}} and the State Savings Bank of Ukraine{{cite news|last=Karpus|first=Vadim|url=http://itc.ua/news/oshhadbank-stal-partnyorom-webmoney-ua/|title="Ощадбанк" стал партнёром Webmoney.UA (Oschadbank has become WebMoney.UA's partner)|date=2015-06-18|archive-date=2017-09-02|archive-url=https://web.archive.org/web/20170902113338/http://itc.ua/news/oshhadbank-stal-partnyorom-webmoney-ua/|url-status=live|work=ITC.ua|publisher=Hotline LLC|language=ru|access-date=2020-05-29}} partnered with WebMoney.UA.

In May 2018, the National Bank of Ukraine has abolished the registration of the inner-state payment system WebMoney.UA (the subsidiary of 'Financing company ElMI', Kyiv) as it was put on the sanctions list of the National Security and Defense Council of Ukraine.[https://112.international/ukraine-top-news/national-bank-of-ukraine-excludes-webmoney-from-register-of-inner-state-payment-systems-28810.html National Bank of Ukraine excludes WebMoney from register of inner-state payment systems.] 112 Ukraine. 2018-05-25.

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