Russian social network Vkontakte plans to close payment system

MOSCOW, Jul 14 (PRIME) — Major Russian social networking Web site Vkontakte plans to stop its current payment system operations, Vkontaktes press office said, RIA Novosti reported Thursday.

Vkontakte plans to gradually phase-out the payment system, the social networks Deputy CEO Ilya Perekopsky was quoted as saying.

An exact timeline for the closing the payment system was not provided.

The Web site decided to close the payment system due to certain logistics connected to a recently approved law concerning the national payment system. The law envisages numerous obligations, which would be unreasonable demands for Vkontakte, Perekopsky said, adding that the law obliged the Web site to set up additional legal entities, obtain licenses, and fulfill other requirements.

Vkontaktes payment system currently allows for paying for additional services within the social network and for goods at online stores cooperating with Vkontakte.

Vkontakte has more than 100 million registered users, according to the Web site.

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