Published: 23/06/2016 - Updated: 23/06/2016 - Tags: Payment Methods
WebMoney is an online transaction platform out of Moscow, Russia. Established in 1998, the company originally targeted users located in Russia but have since expanded their user base. The company now claims to have over 31 million users.
The platform aims to provide a safe place to conduct business online. WebMoney operates using a system called “WebMoney units”. This special form of digital currency allows for an account to be created without being attached to a credit card or bank account. However, users must first purchase “WebMoney”, converting the legal tender of his or her nation to the e-currency. WebMoney can be used for merchant-customer and peer to peer transactions. At this time, over 100,000 shops and online stores accept payments from WebMoney accounts.
History of WebMoney
Many consider WebMoney to be a precursor of an e-currency that is better known today-- BitCoin. WebMoney came into favor after the collapse of the original e-currency, “E-Gold”. WebMoney was launched in Moscow in 1998 as an alternative to centralized currencies. WebMoney ensured its survival by creating safeguards against its being used by cyber criminals, a measure that its predecessor did not take.
Today, WebMoney can be purchased using a number of currencies including the British Pound Sterling, the United States Dollar, the Russian Ruble and BitCoin.
Like BitCoin, WebMoney uses a digital wallet to store a user’s account balance. Users must first “top up” their accounts using a centralized payment method. After this point, a credit card or bank account is not required to operate an account. Personal usage of a WebMoney account allows for the payment of bills, the purchase of products and electronic account transfers. Users can even apply for loans and request donations from other users. Accounts can also be converted back to a supported currency.
Business users can accept payments from other WebMoney users as well as make payments to other users or businesses that accept WebMoney. WebMoney also offers budget management and work management tools to help businesses keep close track of their transactions.
WebMoney offers a number of security features however, these features must be implemented by the individual user. The platform is largely unregulated and cannot be held responsible for the theft of general loss of funds.
As when working with sensitive data of any kind, standard security practices should be observed-- ensure that your system has an anti-virus installed, do not run strange files downloaded from the Internet, ensure that your data is backed up in case of a data loss and control unauthorized access to your system. While these security rules are very simple and widely applied, they are very crucial when working with an e-currency.
WebMoney also offers an application called WebMoney Keeper. This application is an encrypted e-wallet program. A key file to decrypt data is kept on a USB flash drive. Without this file, the wallet cannot function. A separate access can be established to provide a second layer of security for any funds stored using WebMoney. WebMoney also suggests that users to use IP blocking to ensure that the ewallet can only be accessed from certain IP addresses specified from the user.