Russia's Central Bank Official Calls for Visa, Mastercard Exit

MOSCOW, May 25. /TASS/. Visa and Mastercard cards should leave the Russian market since they no longer provide the functionality they once ensured, Director of the Bank of Russia’s National Payment System Department Alla Bakina said.

Experts interviewed by TASS expressed the opinion that the final withdrawal of Visa and Mastercard cards from Russia will be gradual and orderly, with users calmly and progressively switching to Mir cards. TASS has compiled the key facts about the situation.

Decline in use

Bakina pointed out that the Visa and Mastercard payment systems had effectively exited the Russian market, while "a sufficient number of cards remained in people’s hands, but over four to five years the share of these instruments in the market has declined."

She noted that banks are gradually replacing them with other instruments, including Mir cards. Bakina specified that the share of Visa and Mastercard cards currently stands at below 17%.

Need to leave Russian market

Visa and Mastercard cards should leave the Russian market, Bakina said. "With regard to international payment system cards, our position is that, of course, these cards should leave our market because they no longer carry out or provide the functionality they always ensured, while the National Payment Card System continues to bear the costs of supporting these cards," she stressed.

"Through economic incentive measures, National Payment Card System is moving toward a situation where Visa and Mastercard cards leave the market," Bakina stressed.

Experts’ opinions

The final withdrawal of Visa and Mastercard cards from Russia will be smooth and gradual, while users will calmly and progressively switch to Mir cards, experts interviewed by TASS said.

Most of these cards continue operating "beyond their expiration date," which makes their use unsafe, therefore "a systematic and gradual transition of users to Mir appears justified," macroeconomist and expert at the Stolypin Institute for Growth Economics Sergey Vasilkovsky told TASS.

Political analyst and head of the Center for Regional Policy Development Ilya Grashchenkov noted that the reasonable scenario would be "a calm phased transition - without loss of funds, without payment disruptions, and without the need to urgently rush to the bank."

He believes the Central Bank representative’s remarks should be interpreted as a political and technological position rather than an announcement of an immediate shutdown of the cards.

For his part, Boris Kopeikin, chief economist at the Stolypin Institute for Growth Economics, recalled that Visa and Mastercard cards previously issued by Russian banks continue to operate domestically, including after the expiration dates indicated at issuance, because "this is convenient for users."