Visa and Mastercard announced on Saturday that they are suspending operations in Russia within the next several says. Cards that were issued in Russia will cease working outside of Russia. Likewise, cards that were issued outside of Russia will stop working in Russia.
Both credit card companies are joining a long list of companies that halted their services in Russia. PayPal, Netflix, Apple, Intel, Inditex, Airbnb and Rolls Royce are just some of the brands that acted against Russia.
Visa released the following statement:
“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.”
MasterCard issued the following statement:
“Cards issued by Russian banks will no longer be supported by the Mastercard network. And, any Mastercard issued outside of the country will not work at Russian merchants or ATMs.
“We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years. We have nearly 200 colleagues there who make this company so critical to many stakeholders.
“As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide pay and benefits. When it is appropriate, and if it is permissible under the law, we will use their passion and creativity to work to restore operations.”
Sberbank to Adopt Chinese UnionPay
Russia has been preparing for such actions for several years (since the annexation of Crimea). In 2014 Russia introduced the National Payment Cards System (NPCS). The Mir cards along with the System for Transfer of Financial Messages (STFS, which is an alternative to SWIFT) were launched to minimize the impact of possible economic sanctions.
Sberbank announced that it may issue Mir cards based on the Chinese operation system, UnionPay. UnionPay is a Chinese credit card company, it is used by over 120 countries.
If not met by retaliation from the US or EU, such a move may further mitigate Visa and Mastercard’s announcement.
Visa and Mastercard announced on Saturday that they are suspending operations in Russia within the next several says. Cards that were issued in Russia will cease working outside of Russia. Likewise, cards that were issued outside of Russia will stop working in Russia.
Both credit card companies are joining a long list of companies that halted their services in Russia. PayPal, Netflix, Apple, Intel, Inditex, Airbnb and Rolls Royce are just some of the brands that acted against Russia.
Visa released the following statement:
“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.”
MasterCard issued the following statement:
“Cards issued by Russian banks will no longer be supported by the Mastercard network. And, any Mastercard issued outside of the country will not work at Russian merchants or ATMs.
“We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years. We have nearly 200 colleagues there who make this company so critical to many stakeholders.
“As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide pay and benefits. When it is appropriate, and if it is permissible under the law, we will use their passion and creativity to work to restore operations.”
Sberbank to Adopt Chinese UnionPay
Russia has been preparing for such actions for several years (since the annexation of Crimea). In 2014 Russia introduced the National Payment Cards System (NPCS). The Mir cards along with the System for Transfer of Financial Messages (STFS, which is an alternative to SWIFT) were launched to minimize the impact of possible economic sanctions.
Sberbank announced that it may issue Mir cards based on the Chinese operation system, UnionPay. UnionPay is a Chinese credit card company, it is used by over 120 countries.
If not met by retaliation from the US or EU, such a move may further mitigate Visa and Mastercard’s announcement.
Source: https://www.financemagnates.com/fintech/russian-sberbank-is-turning-to-unionpay-following-the-suspension-of-visa-and-mastercard/