PayPal to launch business in Russia with $25 mln investment

Online payment company PayPal plans to start business in Russia with a $25 million investment and open its first office in Moscow soon, Vedomosti business daily reported on Wednesday.

“There are rumors that this fall, the five largest Internet companies will search for key employees in Russia,” head of Pruffi recruitment agency Alyona Vladimirskaya said on her Facebook page, mentioning PayPal and eBay, its parent company.

PayPal plans to open a small office in Moscow in late fall or early winter, and eBay is considering various plans for operating in Russia, the paper quoted an official at a company that advised PayPal. Auction payments will be done through PayPal which is holding talks with DHL and other postal services.

PayPal was unavailable for comment.

Russia is one of the largest and fastest-growing payment markets in the world, Digital Money Association Chairman Viktor Dostov told the paper. In 2010, online payments turnover in Russia rose 75 percent year-on-year to about 70 billion rubles ($2.545 billion) with 33 billion rubles changing hands with the help of online wallets.

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