Russian news agency TASS reports that PayPal is changing its business model in Russia, citing details from a letter PayPal sent to the Russian Central Bank which Tass reviewed.
According to the report, PayPal will stop offering payment and money transfer services between Russian users by August and focus on cross-border trade instead.
Furthermore, PayPal said in the letter that after a review of its Russian operations, its primary volume in the Russian market is cross-border trade, and in 2019 domestic operations only accounted for 4 percent of total profits from the Russian market.
Given these numbers and the time the domestic service was available in Russia, it appears the Russian payment operations never caught on with users and the company must believe that will not change.
PayPal will maintain its Moscow offices to continue supporting its Russian users with cross-border trade payments, Tass added.
No Change Expected For International Sellers
This retrenchment by PayPal in Russia should not impact global sellers as the company will continue to offer its payment services to Russian buyers.
Apparently, the domestic volume was so low, there is no reason to believe this will deter Russian shoppers from adapting or using the PayPal payment system as they mostly used PayPal for just that purpose.
Therefore, sellers who have a significant volume with Russian buyers should not see any negative impact on their sales.
Connect With Us And Other Small Business Owners
Please head over to our Facebook Group for Small Business Sellers and interact with other small business owners.