Russians using these bank cards are about to encounter an unexpected turn of events.
In a move aimed at bolstering the country's financial stability, the Bank of Russia has announced plans to phase out the use of Visa and Mastercard cards issued by Russian banks. The transition to the domestic MIR payment system is expected to be a gradual process, with no fixed date set as of August 2025.
The decision to transition away from international payment systems is a response to the growing popularity of MIR cards in Russia. By the end of 2023, over 240 million MIR cards had been issued, accounting for 52% of the total transaction volume in the country.
Russian banks and customers will receive advance notices about when the transition will take place. Users can switch to MIR cards voluntarily at any time, facilitating a smooth transition away from Visa and Mastercard services.
The phasing out of Visa and Mastercard cards issued by Russian banks does not affect the use of these cards issued by foreign banks in Russia. The National Payment Card System (NSPK) has announced the gradual phasing out of the functionality of previously issued Visa and Mastercard cards within Russia.
The creation of the MIR payment system was initiated in 2014 as a response to the introduction of international sanctions aimed at enhancing the independence of Russia's financial infrastructure. Andrei Kuznetsov, a financial analyst, comments that the full transition to MIR cards is a logical step in the development of the national payment system and ensures its sovereignty.
The elimination of dependence on external factors through the full transition to MIR cards is expected to strengthen the country's financial stability. This measure is a continuation of the policy aimed at reducing dependence on international payment systems.
It is important to note that the further extension of the Visa and Mastercard cards' validity is considered unnecessary due to the high number of Russians using domestic cards. The transition to MIR cards is not mandatory and will be done voluntarily by clients.
Earlier, the indefinite extension of Visa and Mastercard cards was a temporary solution adopted after they left Russia in the spring of 2022. The National Payment Card System (NSPK) has emphasized that there is no urgency to remove international cards immediately, and the transition will be carried out in a coordinated and technical manner.
In conclusion, the gradual transition to MIR cards in Russia is a significant step towards financial independence and strengthening the country's financial stability. Russian cardholders are encouraged to stay informed about the progress of this transition and consider switching to MIR cards at their convenience.
The gradual transition to MIR cards is a logical response to their growing popularity within the Russian business industry, as over 240 million MIR cards were issued by the end of 2023, accounting for 52% of the total transaction volume in the country. The phasing out of Visa and Mastercard cards issued by Russian banks is a move towards enhancing the sovereignty of Russia's domestic payment system, contributing to the country's financial stability in the industry and finance landscape.
