Numerous Russian banks have said they plan to begin issuing cards using the Chinese UnionPay card operator system, combined with the Mir network from Russia, Reuters reported Sunday (March 6).
On Saturday (March 5), Mastercard and Visa — the two largest credit card and digital payment processors — both suspended operations in Russia, forcing Russian banks to consider alternate systems. Tinkoff, Alfa Bank and Sberbank, the biggest lender in Russia, are all looking to switch to the UnionPay system.
PYMNTS wrote recently about Mastercard and Visa’s decisions to get out of Russia, with both of the processors releasing statements Saturday that they would suspend operations within Russia over its invasion of Ukraine.
Read more: Mastercard, Visa Suspend Russian Operations, Condemn Unprovoked Attack on Ukraine
The statements were issued very close to one another, and both companies announced their plans to amp up their original plans to stop operating in Russia.
“With this action, 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,” the Mastercard statement said.
Visa said it had been “compelled to act” and was working with clients and partners in Russia to cease all transactions there.
Visa CEO Al Kelly said that, while the company doesn’t like that it has to impact employees, clients, partners, merchants and cardholders in the country, there was no other choice — because of the country’s threats to “peace and stability,” the company had to “respond in line with our values.”
Visa’s statement said “all transactions initiated with Visa cards issued in Russia will no longer work outside the country and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation.”
Both companies’ actions follow a growing wave of global outrage and financial sanctions against Russia. President Joe Biden, in his State of the Union address, announced plans to “cripple the Russian economy” after the central banks moved to freeze hundreds of billions in foreign reserves globally.
Russia has also largely been blocked from moving money internationally through SWIFT.
Related: Report: EU Considers SWIFT Ban for Belarus Banks
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