China, Russia Central Banks to Discuss National Payment Systems

The central banks of Russia and China are set to discuss the use of the two nation’s national payment systems in both countries.

That’s according to a Friday (May 6) report from Reuters, citing comments from Zhang Hanhui, China’s envoy to Moscow, in an interview with the TASS news service.

“Regarding the promotion and use of the Mir and China UnionPay national payment systems in both countries, this question will be decided by the two sides’ central banks at consultations,” he told TASS.

Mir and UnionPay are among just a handful of cross-border payment options left available to Russians since Russian banks were blocked off from the global financial system following the country’s invasion of Ukraine in February.

Companies such as Visa and Mastercard have suspended operations in Russia, as have American Express, Japan’s JCB, PayPal, Western Union, Apple Pay and Google Pay.

Use of Visa and Mastercard was widespread in Russia before this, with the two companies holding 70% of the Russian debit card market.

See also: Russian-Built Payment System Capitalizes on Visa, Mastercard Exit

As PYMNTS reported last month, many would-be card users in Russia have quickly embraced other options, including UnionPay. Few major Russian banks used UnionPay before the invasion, but some of the biggest banks have begun showing interest.

Russia built its own payment system following an earlier set of sanctions imposed after its military actions in Crimea in 2014. The country launched the National Card Payment System in August of that year, introducing the Mir card a year later.

China has not condemned the Russian invasion and has been critical of the sanctions. Zhang said his country would use a clearing bank for operations in yuan in Russia to ensure the sustainable development of national trade, which Russia projects will reach $200 billion by 2024.

The ambassador added that China and Russia were not pushing for the rejection of U.S. dollar and euro payments in bilateral trade.