Key Data

• Trading Name: QIWI, QIWI Global
• Legal Entities: Qiwi plc, QIWI Wallet Europe» Ltd.
  
• Activities: Payment service provider
  
• Location: Russia, Cyprus
  
• Regulations: EMI license in Latvia, Revoked banking license in Russia
  
• Key People: Sergey Solonin, Boris Kim, Andrey Romanenko, Andrey Protopopov, Alexey Mashchenkov
• Latest news: Qiwi
• Latest update: August. 12, 2024

Background

Qiwi is a leading e-wallet provider in Russia and the CIS. The QIWI wallet is based on Visa Prepaid cards with more than 27 million customers, over 10,000 merchants, and over 100,000 kiosks and terminals. QIWI Group was founded by Sergey Solonin, Boris Kim, and Andrey Romanenko in 2007. QIWI PLC’s headquarters are in Nicosia, Cyprus.

In Jan 2024, Andrey Protopopov, the previous CEO of the overall QIWI group, resigned and was replaced by Alexey Mashchenkov as the new CEO (announcement).

To avoid Western sanctions, on January 19, 2024, QIWI sold its Russian business on January 29, 2024. The non-Russian business is now trading as QIWI Global with the new domain QIWI.globa.

The annual Revenue of QIWI’s continuing operations for the year ended December 31, 2023, was 71.0% higher YoY and reached RUB 7.2 billion ($80.3 million). Net Revenue was 87.0% higher YoY and equaled RUB 2.9 billion ($31.8 million). Adjusted Net Profit was RUB 1.3 billion ($14.1 million).

The Qiwi Offering

QIWI Group includes the QIWI payment system, QIWI Bank, CONTACT money transfer system, Factoring PLUS, Flocktory, and QPlatform. The company has representative offices in three countries.

The Qiwi wallet provides users with access to Visa products with universal acceptance and security. The Qiwi account can be connected automatically to a virtual or physical Visa prepaid card. Qiwi is one of the largest Russian e-wallets.

The core difference between Qiwi and other e-wallets is that Qiwi accounts can be accessed via both cash terminals and any smartphone.

NASDAQ Delisting

The QIWI shares are listed and traded on the U.S. technology exchange NASDAQ through its legal entity, QIWI PLC.

NASDAQ halted trading of the Company’s ADSs in 2022. In April 2023, NASDAQ conditionally accepted the Company’s plan of restructuring to avoid the delisting of QIWI ADSs.

However, in June 2024, the company received notice from NASDAQ about the intended delisting of its shares.

Compliance

On February 21, 2024, the Central Bank of Russia revoked the license of the Russian Qiwi Bank. The regulator found that the bank violated the law, systematically ignored anti-money laundering requirements.

In the EU, Qiwi operates through Qiwi Wallet Europe Ltd with an E-Money Institution (EMI) license in Latvia.

Russia’s financial watchdog reported in August 2024 that clients involved in suspicious transactions are migrating from QIWI Bank to other institutions after QIWI’s banking license was revoked for violating anti-money laundering laws. This, combined with the impact of Western sanctions, has left QIWI in a precarious position as it faces liquidation and an uncertain future.

Rating Conclusion

Due to Qiwi’s problems against the backdrop of the Russia-Ukraine war and Western sanctions, we have placed Qiwi on our Red Compliance and Red Risk list and advise merchants and private individuals to exercise extreme caution.