Russia has proven to be a difficult market to enter for the foreign online retailers. The problems do not end with difficult language, local search engines and advertising platforms, and cultural differences. The logistics is one of the main challenges; payments is the other.
Russian market is very different from other European markets when it comes to online payments. E-commerce is on a pretty early stage of its development, and the trust to online payments is low. Cash on delivery is still very common way of paying for products purchased online. Local online payment systems dominate the market, while PayPal has a very small share of the market.
During the last Russian Internet Forum (RIF) conference help in Moscow in April a number of Russian online payment providers such as PayU and Robokassa, as well as an independent research companies TNS Russia and DATA Insight shared some insights into the situation with online payments in Russia. Below I will try to summarize the main points from their presentations and give a snapshot of the current state of the market.