Russian banks are planning to issue cards using the UnionPay payment system, as Visa and Mastercard to suspend their operations in Russia
Bank of Russia headquarters in Moscow. (Credit: Ludvig14/Wikipedia)
Russian banks are reportedly looking to use China’s UnionPay system, as card issuer companies Visa and Mastercard recently suspended their operations in Russia.
The US-based payment card companies have announced their plans to suspend operations in Russia, forcing several Russian banks to look for alternative payment systems.
Visa and Mastercard cards issued by Russian banks will stop working overseas from 9 March, but would function within the country until their expiry, reported Reuters.
The transactions initiated using Visa cards issued in Russia may not work outside of the country, and cards issued outside of Russia may not work within the country
Visa chairman and CEO Al Kelly said: “We are compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed.
“We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability demand we respond in line with our values.”
Bank of Russia stated that various Russian banks are planning to issue cards using the UnionPay payment system, which is said to operate in 180 countries, the publication said.
Joining several Russian banks, Sberbank and Tinkoff are expected to start issuing cards co-badging Russia’s domestic Mir payments system with UnionPay.
Mir’s cards are accepted in a few countries, including Turkey, Vietnam, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
Furthermore, the central bank has advised Russians currently stranded abroad, to withdraw cash before the payment services are suspended.
Mastercard, in a statement, said: “In the meantime, our teams across the region and around the world will continue to enable and advance our global business, supporting our customers in other geographies where we currently do business.
“Our Cyber & Intelligence teams will continue to work with governments and partners around the world to ensure that stability, integrity and resiliency of our systems continue to guide our operations and response to potential cyber-attacks.”