Lead
Visa and Mastercard payment cards are effectively absent from the Russian market, though they still require technical support, according to the head of Russia's National Payment Card System (NSPK), the operator of the Mir payment system. The comments come as the Bank of Russia says it has not set a timeframe for withdrawing these cards from circulation.
Coverage Comparison
Reporting from TASS, the Russian state news agency, presents two main threads. In one article, NSPK CEO Dmitry Dubynin, speaking in an interview with Expert magazine, said that Visa and Mastercard cards "no longer provide any value: they do not work abroad, there is no access to the loyalty programs of these payment systems, and so on." He described them as "essentially just pieces of plastic bearing the logos of international payment systems that no longer operate in Russia."
In a separate report, Bank of Russia Governor Elvira Nabiullina told a briefing that the central bank is not setting a deadline for the cards' withdrawal, saying they will be phased out gradually. "You know, we aren't setting these timeframes. It is simply the case that these cards, <...> Visa and Mastercard, essentially function just like Mir cards. In our view, they will gradually be phased out of circulation, and this is already happening, partly through economic measures," she said.
The two reports align on the core point that Visa and Mastercard cards have diminished in relevance, but they approach the topic from different angles: one focuses on the practical assessment of their market presence, the other on the regulatory stance regarding their phase-out.
Key Claims
- Visa and Mastercard cards effectively absent: Dmitry Dubynin, CEO of the NSPK, said that Visa and Mastercard cards are effectively absent from the Russian market because they no longer provide value. They do not work abroad and lack access to the international payment systems' loyalty programs, he said, while still requiring technological support due to physical wear and tear and expiring chip security certificates.
- No timeframe for withdrawal: Bank of Russia Governor Elvira Nabiullina said the central bank has not set a timeframe for withdrawing Visa and Mastercard cards from circulation. She said they will be phased out gradually, partly through economic measures, and that they currently function essentially like Mir cards.
- Declining market share: According to the Central Bank, the share of Visa and Mastercard cards in the Russian market now stands at around 17%, having declined significantly over the past five years.
- Suspension of operations in March 2022: In early March 2022, Visa and Mastercard announced the suspension of their operations in Russia. Cards issued by Russian banks continued to function domestically because they are processed by the NSPK, the operator of the Mir system.
- NSPK recommendation on expired cards: The NSPK recommended that banks continue accepting cards whose expiration dates had passed, according to TASS.