(Worthy News) – After Visa and Mastercard announced that their operations in Russia would be suspended, many Russian banks announced on Sunday that they would soon begin issuing cards using the Chinese UnionPay card operator’s system combined with Russia’s own Mir network. Sberbank, Russia’s largest bank, as well as Alfa Bank and Tinkoff, all announced the transfer to UnionPay on Sunday.
The development has come amidst, Visa and Mastercard, both based in the United States, announced on Saturday that they were halting operations in Russia as a result of the invasion of Ukraine and that they would work with clients and partners to stop all transactions there. All transactions started with Visa cards issued in Russia will no longer function outside of the nation within days and any Visa cards issued outside of Russia will no longer work within the country, the company said in an official statement.
It is pertinent to note that Russian banks have been barred from using the SWIFT global payments system by the United States, the United Kingdom, and the European Union. SWIFT connects nearly 11,000 banks and institutions in over 200 countries, and Russia’s loss of access to the system would have an impact on international cash transfers and foreign trade. Multiple Russian financial firms have also been barred from utilising Mastercard and Visa’s networks. [ Source: International Business Times (Read More…) ]