Payments

Visa and Mastercard Help Russia to Localize Payments

MEDICI

  • The Visa International payment system will process domestic payments through Russia’s recently spawned National Payment System.
  • Visa and Mastercard hold 90% of the Russian market, causing Russia to take a hit when the companies’ services were suspended due to U.S. sanctions.
  • Mastercard signed a similar agreement in January and began to carry out transactions via the NPCS processing center.
  • Processing local transactions is important for Visa and Mastercard to become nationally important payment systems of Russia; saving them both around $3 billion in fees to the Central Bank.
  • In December the Central Bank announced plans for an alternative international payment clearing system to replace the SWIFT global system in fear of being cut off by the West.

(Sources: Russia’s Federal Custom Services; The Central Bank of Russian Federation; rt.com)

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MEDICI

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