Visa and Mastercard Help Russia to Localize Payments
The Visa International payment system will process domestic payments through Russia’s recently spawned National Payment System.
- Visa and Mastercard hold 90% of the Russian market, causing Russia to take a hit when the companies’ services were suspended due to U.S. sanctions.
- Mastercard signed a similar agreement in January and began to carry out transactions via the NPCS processing center.
- Processing local transactions is important for Visa and Mastercard to become nationally important payment systems of Russia; saving them both around $3 billion in fees to the Central Bank.
- In December the Central Bank announced plans for an alternative international payment clearing system to replace the SWIFT global system in fear of being cut off by the West.