Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Highly competitive payment services industry with larger competitors having greater financial resources.
• Decline in average net revenue yield.
• Substantial portion of revenue from a few large merchants (Big Three MNOs).
• Lack of control over fees levied by agents on consumers.
• Material weakness in internal control over financial reporting identified in 2011.
• Dependence on consumer confidence.
• Decline in cash usage as a means of payment.
• Challenges in expanding into new geographical markets.
• Extensive government regulation.
• Economic risk and business cycles of merchants and agents.
• Risks related to corporate structure and doing business in Russia and other emerging markets.
• Rapid growth requiring enhanced compliance processes.
• Need to keep pace with rapid technological changes.
• System failures and cybersecurity breaches.
• Potential for fines or termination of agreements with Visa Inc.
• Potential increase in costs of consumers reloading Visa Qiwi Wallet accounts.
• Deficiencies identified by Russian banking regulators in Qiwi Bank.
• Customer complaints and negative publicity.
• Lack of exclusivity clauses in agreements with agents and merchants.
• Potential for fraudulent, illegal, or improper use of the payment system.
• Counterparty and credit risks.
• Potential for being deemed to hold a dominant market position.
• Challenges in protecting intellectual property.
• Potential risks associated with using open-source software.
• Insufficient insurance coverage.
• Need to raise additional funds.
• Challenges in attracting, recruiting, retaining, and developing qualified personnel.

Mitigation Strategies

• Implementing greater controls over communication, approval, and accounting for non-routine transactions and complex estimates.
• Hiring an external consultant to advise on internal control over financial reporting.
• Recruiting additional qualified personnel.
• Introducing consumer fees and value-added services to offset decline in merchant fees.
• Developing and enhancing services offering.
• Increasing payment volume.
• Implementing enhanced processes, procedures, and controls to ensure compliance with regulatory requirements.
• Developing a fully developed FCPA compliance program.
• Expanding services and developing new projects.
• Investing in start-up companies and research and development initiatives.
• Implementing measures to ensure compliance with Visa Inc.'s agreements and regulations.
• Addressing deficiencies identified by Russian banking regulators.
• Improving customer service.
• Monitoring the creditworthiness of counterparties.
• Taking actions to remedy violations of anti-trust legislation.
• Implementing measures to protect intellectual property.
• Obtaining insurance policies where commercially acceptable.
• Generating sufficient capital from operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS