On May 25 (Moscow time), according to TASS news agency, the Central Bank of Russia said that Visa and Mastercard payment cards should withdraw from the country's market because they no longer fully perform their functions as before.
Speaking about the above issue, Ms. Alla Bakina - Director of the National Payment System Department of the Central Bank of Russia - said that Visa and Mastercard have actually left the Russian market before, but the number of cards circulating in people's hands is still quite large.
According to Ms. Bakina, in the past 4-5 years, the proportion of using these types of cards in the Russian market has decreased significantly. Domestic banks are also gradually replacing them with other payment instruments, especially Russia's Mir card system.
She said that the market share of Visa and Mastercard in Russia has now decreased to below 17%.
Our view is that international payment card systems should leave the Russian market because they no longer perform their inherent roles, while the national payment card system still has to bear the costs to support the operation of these cards," Ms. Bakina said.
According to Russian officials, the national payment card system is using economic incentive measures to gradually promote the process of Visa and Mastercard withdrawing from the market.
Experts interviewed by TASS said that this process is likely to take place gradually and will not cause major disruption to users.
Mr. Sergey Vasilkovsky - macroeconomic expert at the Stolypin Institute for Growth Economics - said that many Visa and Mastercard cards in Russia are still operating even after expiration, which may increase risks during use.
Meanwhile, political analyst Ilya Grashchenkov believes that the most reasonable scenario is a transition process in stages, without disrupting payments or forcing users to change suddenly.
Experts also emphasize that the statement from the Central Bank of Russia should be seen as a long-term policy and technology orientation, instead of a signal that Visa and Mastercard will be immediately suspended in this country.
