Internet Acquiring in EU and CIS

About us More than 15 years of experience in e-Commerce Participation in management of the largest PSP services in Russia Own software uniting various payment methods and antifraud system Since 2015 we are presented at the market of EU countries as UK licensed payment institution Our main goal is to provide settlement functions for the PSP companies

E-commerce in the CIS becomes really international Why we moving to the West?

The CIS companies enter the market of the EU Generally services are: SAAS, online games, IT service, dating Main jurisdictions: Cyprus, Great Britain Important requirement: financial and IT support on Russian language OR

Purchases in foreign online stores grow in the CIS Goods with physical delivery and mobile apps are most popular Development of logistic infrastructure accelerates growth BUT In Russia the government tries to limit operational use of foreign Internet services by so-called "tax on Google"

Comparison of the EU and CIS acquiring services One product – Different markets

EU CIS Payment methods Bank cards E-banking PayPal Wire transfer E-money, self service kiosks But… Only cash on delivery for goods

AML and Security EU More difficult, disclosure of beneficiaries is required Rolling reserve and payout hold are the normal practice Simple chargeback procedures for payers CIS Usually simple, requires minimal number of documents No reserves and immediate payout Sometimes it’s hard to initiate chargeback

Fare policy EU PSP and PayPal usually works with small and medium size e-shops Fares at higher level, fix part of commission is used Additional fees are widely used CIS PSP and banks compete on equal terms even in a case of small e-shops High price competition, small margin of PSP (plus of 0,4 - 0,8% to interchange rate is normal) No installation or regular fees

Recent tendencies The volume of cross-border trade will be continue to increase Despite regional distinctions, Internet acquiring services is commodity product and conditions of cooperation in the different markets will be gradually leveled Payment services will actively enter the new markets, using local financial institutions

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