Central Bank is determining the conditions for canceling Visa and Mastercard credit cards
In Russia, the Bank of Russia is currently deliberating the timeline for Russian banks to phase out Visa and Mastercard cards and transition gradually to the domestic 'Mir' payment system. The process is expected to be gradual, with no immediate replacement required, allowing Russian users to switch to 'Mir' cards at their own pace [1][2].
Since the suspension of Visa and Mastercard operations in 2022, no new cards from these international providers have been issued in Russia. In response, the Bank of Russia extended the validity of existing international cards to permit continued use. The central bank has assured that a reasonable and sufficient timeline will be provided to banks for phasing out international cards [1][2].
At present, MPS cards continue to function as usual, and users can already choose to replace their MPS cards with 'Mir' cards. The Bank of Russia's decision to extend the validity of MPS cards was to allow people to continue using their cards without altering their habits [1][2].
The share of MPS cards in circulation is decreasing as people are preferring to replace cards of absent MPS with relevant domestic ones. The transition from MPS cards to domestic ones is ongoing, with users choosing to replace their MPS cards with 'Mir' cards [1][2].
The Bank of Russia intends to set a maximum validity period for MPS cards in July 2025, but no definitive date for the cessation of MPS card services has been specified at this point [1][2]. Banks will inform clients about further actions regarding the replacement of MPS cards with 'Mir' cards in due course.
The Bank of Russia expects a smooth transition to 'Mir' cards as clients choose to do so. The need for the measure to allow continued use of MPS cards has lost its relevance as the transition to domestic payment systems progresses [1][2].
Sources: [1] TASS News Agency [2] Bank of Russia Press Release
The Bank of Russia's phasing out of international cards such as Visa and Mastercard will likely affect the finance industry, as Russian banks gradually transition to the domestic 'Mir' payment system. This move will also impact the banking-and-insurance sector, given that many transactions, including those related to credit cards, are interconnected with these financial institutions.
As the central bank sets a maximum validity period for MPS cards in July 2025, the finance industry will need to adapt to the ongoing transition from MPS cards to 'Mir' cards, with the latter becoming the preferred choice for Russian users due to its domestic nature.
