What is Webmoney?

WebMoney

     WebMoney is an electronic money and online payment system (transactions are conducted through WebMoney Transfer). WM Transfer Ltd, the owner and administrator of WebMoney Transfer Online Payment System, was founded in 1998 and is a legal corporate entity of Belize. Originally targeted mainly at Russian clients, it is now used worldwide. The company claims to have more than 11 million users.
As of December 17, 2010, Steam accepts WebMoney as a payment method.
An unrelated Japanese company provides a similar online payment system using the same name. However, the Japanese service only supports accounts denominated in yen and anonymity is not as strong as in WebMoney.

Currency

Every account, known as a "purse", is run in Gold-equivalents (WMG), US Dollar-equivalents (WMZ), ruble-equivalents (WMR), Belarusian ruble-equivalents (WMB), euro-equivalents (WME) or hryvnia-equivalents (WMU). From May 31, 2011 system supports Vietnamese đồng-equivalents (WMV), but only through a mobile phone interface.
Also, Kyrgyzstani som and Uzbekistani som-equivalents (WMS) and (WMY) were introduced, but canceled by central system authority.
Accounts are identified by strings called WM-IDs; account holders can remain completely anonymous towards each other.
Signing up and receiving webmoney (known as "WM units") from other users is free; sending WM units to other accounts incurs a fee of 0.8%. Funds can be deposited into or withdrawn from webmoney accounts by money order, wire transfer, by conversion from other electronic currencies, or by cash transactions at authorized exchange offices; all of these incur various fees. It is also possible to purchase WM cards for $10–$100 in order to fund an account.

Made for CIS

The main address for technical support is given in Moscow; the main proprietor and administrator is located in Belize. Transactions in WMR are underwritten by WMR LLC in Moscow and transactions in WME and WMZ are underwritten by Amstar Holdings Limited.
Besides CIS and Eastern European countries, WebMoney has offices in such countries as the USA, Netherlands, Spain, Japan, Greece, Israel, France, and the UAE.

Security

WebMoney transactions do not require a credit card or bank account, are final, and cannot be retracted. This is similar to Bitcoin, e-gold and cash and in contrast to credit card and PayPal transactions.

Criticism

• WebMoney isn't integrated into an international financial system. It doesn't offer to fill the purse using international credit cards. It doesn't accept Western Union or Paypal transfers. There are some third parties offering such services for commission fees.
• The routine need to use third parties for many operations with WebMoney raises the question of trust and the possibility of fraud.