from China UnionPay The cards are expected to be issued by major Russian banks Credit Bank of Moscow i DOM.RF from the beginning of 2023, Report on Russia.
The new bank cards, from one of China’s leading card schemes, will allow Russians to do business abroad, Russia Briefing said, and will be jointly branded by UnionPay and Mir, the electronic payment system owned by the Central Bank from Russia
UnionPay cards were mainly aimed at Chinese tourism, he said RA Expert analyst Evgeny Romanov a Report of the banksbut Russians can also use the cards in other countries, although demand will depend on the cost.
Big banks are the latest in Russia to embrace the Shanghai-based financial service, after the war in Ukraine spurred Western companies. visa i MasterCard suspend operations in the country.
China enters Russian banking
Eleven other large Russian banks, incl Gazprombank, RSHB, Bank of Saint Petersburg i Zenithave already made the switch to China’s Union Pay, Russia Briefing said, with the likes of Absolut Bank, Rosbank, AK Bars and Home loan expressing plans to do the same.
However, business with Russian banks will remain monitored and limited, Romanov noted, due to China’s fear of US sanctions.
Union Pay could gain a 5-8% share of Russia’s card payment economy, Russia’s Novikombank he told Russia Briefing, as long as Visa and MasterCard do not lift their bans in the near future.
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Alfie is a reporter at Asia Financial. He previously lived in Mumbai reporting on India’s economy and health for the data journalism initiative IndiaSpend, as well as working for London-based Tortoise Media.