WebMoney
Encyclopedia
WebMoney is an electronic money
and online payment system (transactions are conducted through WebMoney Transfer). WM Transfer Ltd, the owner and administrator of WebMoney Transfer Online Payment System, was founded in 1998 and is a legal corporate entity of Belize
, Central America
. Originally targeted mainly at Russia
n clients, it is now used worldwide. The company claims to have more than 11 million users.
As of Dec 17 2010, Steam accepts WebMoney as a payment method.
An unrelated Japanese company provides a similar online payment system using the same name. However, the Japanese service only supports accounts denominated in yen
and anonymity is not as strong as in WebMoney.
-equivalents (WMG), US Dollar-equivalents (WMZ), ruble
-equivalents (WMR), Belarusian ruble
-equivalents [WMB] euro
-equivalents (WME) or hryvnia
-equivalents (WMU).
From May 31, 2011 system supports Vietnamese đồng-equivalents (WMV), but only through mobile phone interface,.
Also, Kyrgyzstani som
and Uzbekistani som
-equivalents (WMS) and (WMY) were expluatated, but canceled by central system authority.
Accounts are identified by strings called WM-IDs; account holders can remain completely anonymous towards each other.
Signing up and receiving webmoney (known as "WM units") from other users is free; sending WM units to other accounts incurs a fee of 0.8%. Funds can be deposited into or withdrawn from webmoney accounts by money order
, wire transfer
, by conversion from other electronic currencies, or by cash transactions at authorized exchange offices; all of these incur various fees. It is also possible to purchase WM cards for $10–$100 in order to fund an account.
; the main proprietor and administrator is located in Belize
. Transactions in WMR are underwritten by WMR LLC in Moscow and transactions in WME and WMZ are underwritten by Amstar Holdings Limited.
Besides CIS and Eastern European countries, WebMoney has offices in such countries as USA, Netherlands, Spain, Japan, Greece, Israel, France, UAE.
and cash
and unlike credit card
transactions and PayPal
.
Electronic money
Electronic money is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems...
and online payment system (transactions are conducted through WebMoney Transfer). WM Transfer Ltd, the owner and administrator of WebMoney Transfer Online Payment System, was founded in 1998 and is a legal corporate entity of Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
, Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
. Originally targeted mainly at Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n clients, it is now used worldwide. The company claims to have more than 11 million users.
As of Dec 17 2010, Steam accepts WebMoney as a payment method.
An unrelated Japanese company provides a similar online payment system using the same name. However, the Japanese service only supports accounts denominated in yen
Japanese yen
The is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...
and anonymity is not as strong as in WebMoney.
Currency
Every account, known as a "purse", is run in GoldGold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
-equivalents (WMG), US Dollar-equivalents (WMZ), ruble
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
-equivalents (WMR), Belarusian ruble
Belarusian ruble
The ruble is the currency of Belarus. The symbol for the ruble is Br and the ISO 4217 code is BYR.-First ruble, 1992–2000:The breakup of supply chain in the former Soviet enterprises demanded that goods be bought and sold on the market, often requiring cash settlement...
-equivalents [WMB] euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
-equivalents (WME) or hryvnia
Ukrainian hryvnia
The hryvnia, sometimes hryvnya or grivna ; sign: ₴, code: , has been the national currency of Ukraine since September 2, 1996. The hryvnia is subdivided into 100 kopiyok. In medieval times, it was a currency of Kievan Rus'....
-equivalents (WMU).
From May 31, 2011 system supports Vietnamese đồng-equivalents (WMV), but only through mobile phone interface,.
Also, Kyrgyzstani som
Kyrgyzstani som
The som is the currency of the Kyrgyz Republic in Central Asia. The ISO 4217 currency code is KGS. The som is sub-divided into 100 tyiyn...
and Uzbekistani som
Uzbekistani som
The som is the currency of Uzbekistan in Central Asia. The ISO 4217 currency code is UZS.-Etymology:In the Soviet Union, speakers of Kazakh, Kyrgyz and Uzbek called the ruble the som, and this name appeared written on the back of banknotes, among the texts for the value of the bill in all 15...
-equivalents (WMS) and (WMY) were expluatated, but canceled by central system authority.
Accounts are identified by strings called WM-IDs; account holders can remain completely anonymous towards each other.
Signing up and receiving webmoney (known as "WM units") from other users is free; sending WM units to other accounts incurs a fee of 0.8%. Funds can be deposited into or withdrawn from webmoney accounts by money order
Money order
A money order is a payment order for a pre-specified amount of money. Because it is required that the funds be prepaid for the amount shown on it, it is a more trusted method of payment than a cheque.-History of money orders:...
, wire transfer
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
, by conversion from other electronic currencies, or by cash transactions at authorized exchange offices; all of these incur various fees. It is also possible to purchase WM cards for $10–$100 in order to fund an account.
Made for CIS
The main address for technical support is given in MoscowMoscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
; the main proprietor and administrator is located in Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
. Transactions in WMR are underwritten by WMR LLC in Moscow and transactions in WME and WMZ are underwritten by Amstar Holdings Limited.
Besides CIS and Eastern European countries, WebMoney has offices in such countries as USA, Netherlands, Spain, Japan, Greece, Israel, France, UAE.
Security
WebMoney transactions do not require a credit card or bank account and are final and cannot be retracted; this is similar to e-goldE-gold
e-gold is a digital gold currency operated by Gold & Silver Reserve Inc. under e-gold Ltd., and allowed the instant transfer of gold ownership between users until 2009 when transfers were suspended due to legal issues. e-gold Ltd...
and cash
Cash
In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...
and unlike credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
transactions and PayPal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
.
Criticism
- WebMoney isn't integrated into an international financial system. It doesn't offer to fill purse using international credit cards. It doesn't accept Western UnionWestern UnionThe Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
or PaypalPayPalPayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
transfers. There are some third parties offering such services for commissionCommission (remuneration)The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold...
fees. - The routine need to use third parties for many operations with WebMoney raises the question of trust and the possibility of fraud.
- User accounts can be blocked without explanation or for critique of the system.
- Non-legal service in Ukraine, National Bank of Ukraine press release -
See also
- Electronic moneyElectronic moneyElectronic money is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems...
- Internet currencyInternet currencyInternet currency was a form of electronic money for the Internet. Most sites offering Internet currency have either shut down or been acquired.-History:...
- Anonymous Internet bankingAnonymous internet bankingAnonymous Internet banking is the proposed use of strong financial cryptography to make electronic bank secrecy possible. The bank issues currency in the form of electronic tokens that can be converted on presentation to the bank to some other currency...
- BitcoinBitcoinBitcoin is a decentralized, peer-to-peer network over which users make transactions that are tracked and verified through this network. The word Bitcoin also refers to the digital currency implemented as the currency medium for user transactions over this network...