Dmitry Dubynin, CEO of the National Payment Card System (NSPK), stressed that cards issued by Visa and Mastercard “don’t provide any value,” as their operations are currently supported by the national system. Visa and Mastercard exited the Russian market in March 2022.
Key Takeaways
Mir cards captured 85% of Russia’s market as sanctions rendered Visa and Mastercard effectively useless.Remaining foreign cards will soon fail due to physical wear and the expiration of security certificates.Russia’s central bank announced a gradual phase-out for international cards without strict timeframes.As local options rise, the Russian card market is being increasingly driven by Mir alternatives after Mastercard and Visa, the two international credit giants, exited the country amid a sanctions push.
Dmitry Dubynin, CEO of the National Payment Card System (NSPK), stressed that international cards were absent from the Russian market, with local alternatives retaking almost all of the credit card market share.
Dubynin compared these leftover cards to pieces of plastic bearing the logos of international companies that no longer operate in Russia, stressing that local support kept them operating.
He commented that eventually, these cards will fail as they endure wear and tear and their security certificates expire. Nonetheless, the NSPK is implementing measures to ensure its continued operation even under these circumstances.
Nonetheless, on July 2, central bank Governor Elvira Nabiullina disclosed that there would be no timeframes for their withdrawal, indicating that they would be phased out gradually.
