Payment Systems vs EOR  in Belarus

Understanding the correlation between payment systems in Belarus and EOR (Employer of Record) services allows us to understand how modern financial technologies and business models can interact to improve working conditions and increase business efficiency. Payment systems play an important role in the economy of any country, providing secure and fast financial transactions. Given the growing interest in digital payments and the need to integrate with international standards, this topic is becoming particularly relevant in Belarus. EOR services, in turn, offer companies the opportunity to work in Belarus, minimizing the risks associated with hiring employees. In this article, we will look at the types of payment systems that operate in Belarus and the specifics of providing EOR services using payment systems.

Types of Payment Systems in Belarus

Payment systems are services for settlements between the parties to obligations that help transfer money (fiat or electronic) and cryptocurrencies for a fee. Payment system services are paid. The fee is often a percentage of the amounts that pass through the payment systems. The bank retains this percentage or the payment system operator.

The following types of payment systems can be considered:

1. Well-known international payment systems such as VISA, Mastercard, and UnionPay are available in different countries. However, due to restrictions on settlements using these systems, only the MIR payment system operates between residents of Belarus and Russia.

2. National payment systems. It is the BISS (Belarus Interbank Settlement System) system in Belarus. The national payment systems in Belarus include Belcard. 19 out of 23 Belarusian banks issued cards of this payment system. In the Belkart system, banks issue bank cards integrated with the Russian national payment system MIR for settlements and purchases in Russia and money transfers from Russia to Belarus.

According to the payment method, payment systems (in which payments are made using physical bank payment cards) and electronic payment systems (in which you can pay from bank accounts or virtual payment cards) can be distinguished.

Electronic Payment Systems 

Electronic payment systems allow you to make payments online. National, international and cryptocurrency payment systems operate in Belarus. 

Belarusian Electronic Payment Systems

The Belarusian national electronic payment system is the ERIP (Unified Settlement Information Space). Using this payment system, you can pay for goods and services and transfer money to individuals within Belarus. Other Belarusian payment systems that work with ERIP:

• WebPay
• Oplati
• EasyPay
• iPay
• MTS Money
• Hutki Grosh

These payment systems generally have mobile applications that can be used to create an electronic wallet.

International Electronic Payment Systems in Belarus

Some international payment systems are available in Belarus (there are restrictions on their use):

• WebMoney is a Russian system that allows you to create electronic wallets in euros, US dollars, Kazakhstani tenge, and some cryptocurrencies.
• ЮMoney is one of the Yandex services, and its main currency is the Russian ruble.
• PayPal is an international multicurrency payment system operating in over 200 countries. There are restrictions for users from Belarus (for example, withdrawal of funds) starting in 2023, but it still allows them to pay for goods and services abroad.
• QIWI is an electronic payment system owned by the Russian Qiwi Bank, currently liquidating. Its payment terminals are located in various cities in Belarus.

Cryptocurrency Payment Systems

In Belarus, paying for goods and services and receiving cryptocurrency wages is impossible. However, citizens of Belarus can create cryptocurrency wallets to make payments and receive funds abroad. For example, the following payment systems are used for this purpose:

• CryptoCloud is a payment system designed for businesses that enable legal entities to pay for goods and services using cryptocurrency.
• BitPay is a payment system that allows you to pay for goods and services in cryptocurrency in more than 200 countries worldwide.
• NOWPayments is a system specially created for integration with eCommerce and designed to accept cryptocurrency payments in stores.

How do Customers and EOR Service Providers Use Payment Systems 

Payment systems that operate in Belarus are important for customers of EOR services, service providers, and employees. Foreign customers of EOR services should understand these systems to safely transfer money to service providers and track costs, including remuneration from the payment system.

How do Customers of EOR Services Use payment Systems

Customers cooperating with EOR providers use payment systems to transfer funds for EOR services. Customers usually pay for the provider’s services through bank transfers or electronic payments. 

Use of Payment Systems by EOR Providers 

EOR providers use payment systems to:  

• Receiving funds from service customers.
• Salary payments to employees.
• Management of taxes and contributions, as EOR pays taxes and contributions through banking services, using integration with Belarusian banks and tax authorities.  

How do Payment Systems Provide Services to Individuals Using Payment Cards

Payment cards of one payment system can work with other payment systems. Here is an example of payments by an individual for goods:

1. When paying for goods using a payment card, you provide the seller’s bank with the bank card details when you transfer it through the payment terminal. 

2. The seller’s bank will forward this data and the payment amount to its system. 

3. Using your card information, the payment system transfers the amount to be paid to the issuing bank (the bank that issued the payment card). 

4. The issuing bank checks the account status to which your card is linked. If the account is active and there are enough funds, the bank confirms the transaction and returns this information to the payment system, while the specified amount is blocked on your account. 

5. The payment system returns the received data to the seller’s bank. 

6. The seller’s bank notifies you of the successful payment.

Why is it Important for Customers of EOR Services to Know about Payment Systems that Operate in Belarus

For companies that use EOR services in Belarus, understanding the specifics of local payment systems is an important factor in doing business successfully. It is due to several important aspects:

1. Compliance with Local Legislation  

Belarus has strict rules governing money transfers and salary payments. Using payment systems that comply with legal requirements allows you to avoid fines and other legal risks. Service customers should be aware of secure ways to transfer amounts to pay and reward EOR service providers. Companies providing EOR services must consider local laws on currency transactions, taxation, and financial reporting for employee benefits.

2. Guarantee of Timely Payments 

Payment systems affect the speed and reliability of funds transfers to employees and contractors. Choosing platforms that provide fast payment processing and minimal fees is important. Companies working with EOR need a fail-safe infrastructure for regular and timely salary payments.

3. Currency Transactions and Conversion  

Many foreign customers work with currencies other than the Belarusian ruble. Knowledge of payment systems that support favourable conversion rates and minimal fees allows you to optimize the cost of international transfers and avoid financial losses.

4. Tax Deductions and Reporting  

EOR providers must properly withhold taxes and contributions from employees’ salaries and remuneration. Reliable payment systems guarantee the transparency of customers’ cash receipts. When using cryptocurrencies, payments outside of Belarus must be covered by converting them into traditional funds so that they are credited to the Belarusian bank accounts of the EOR service provider. In Belarus, direct payments in cryptocurrencies with EOR service providers are impossible. 

5. Consideration of Sanctions Restrictions

In the context of international sanctions, it is important to use payment systems that are not subject to restrictions and continue to work smoothly with foreign companies. It avoids the freezing of payments and financial blockages. For each specific case, you need to choose the appropriate payment system.

6. Convenience for Employees 

Popular payment systems in Belarus can offer convenient conditions for employees, such as instant transfer of funds, and access to banking products and services through mobile applications. This increases staff loyalty and simplifies financial flow management. The EOR service provider usually chooses the internal payment system.

Thus, a deep understanding and a competent choice of payment systems help companies minimize risks, optimize costs, and ensure the smooth operation of business in the Belarusian market through EOR services.

Conclusion

Payment systems in Belarus play a key role in ensuring the stability and efficiency of financial transactions for businesses and individuals. The development of technology and the expansion of digital services contribute to improving the user experience and increasing transaction security. In the context of globalization and digital transformation, there is a growing demand for solutions that simplify the management of international employees. It puts EOR services in demand for companies seeking to enter new markets.

Using EOR services allows businesses to minimize risks and reduce administrative costs when hiring employees abroad. In Belarus, thanks to a combination of modern payment instruments and convenient personnel management solutions, companies can effectively adapt to changes in the market and remain competitive. Thus, choosing the right payment system for interacting with an EOR provider guarantees business growth and scaling opportunities.