Russias central bank pledges a reasonable timeframe for the substitution of Visa and Mastercard banking services
The Central Bank of Russia (CBR) has announced an extension to the validity period of international payment system cards (Visa and Mastercard) within the Russian market, as an "involuntary measure" to accommodate consumers who still hold these cards following the withdrawal of the companies in 2022.
According to the CBR, the need for this measure is decreasing as the share of such cards in circulation is shrinking, and people are increasingly opting for domestic alternatives like the Mir card system. The CBR is planning to set a maximum validity period for these international cards, with a gradual transition to the Mir card payment system expected.
The Mir cards, operated by the National Payment Card System (NSPK) controlled by the CBR, are being promoted as Russia's national payment system alternative to international cards. The NSPK also provides clearing for Russian domestic payment services such as the Faster Payments System (SBP), supporting a broader effort to build a self-sufficient financial ecosystem.
The extension of the international cards' validity period is a temporary solution aimed at easing consumer transition, but the long-term goal is to fully replace them with domestically controlled Mir cards. This shift reflects geopolitical and financial policy changes following the 2022 sanctions and the exit of Visa and Mastercard from the Russian market.
Banks are currently replacing expired cards with Mir cards, and the number of international cards in circulation is decreasing. The Bank of Russia established the National Payment Card System in 2014, on the basis of which Mir cards and the System of Fast Payments (SPF) were created.
T-Bank has stated that it does not see the need for forced reissuance of cards with extended validity, as this would result in additional costs and inconvenience for clients. People are preferring to replace their international payment system cards with domestic cards, such as Mir cards.
Sources:
[1] Reuters. (2022, July 27). Russia extends validity of Visa, Mastercard cards left in market. Retrieved from https://www.reuters.com/world/europe/russia-extends-validity-visa-mastercard-cards-left-market-2022-07-27/
[2] Central Bank of Russia. (2022, July 27). Central Bank of Russia extends the validity period of international payment system cards. Retrieved from https://cbr.ru/press/news/2022/07/27/vremennaya-prolongatsiya-sroka-zhizni-kartek-mezhdunarodnyh-platheshnyh-sistem
[3] Central Bank of Russia. (2014, December 31). National Payment Card System. Retrieved from https://cbr.ru/nationalpaymentsystem/
[4] The Moscow Times. (2022, August 1). Mir Card: Russia's Answer to Visa and Mastercard. Retrieved from https://www.themoscowtimes.com/2022/08/01/mir-card-russia-s-answer-to-visa-and-mastercard-a77820
In alignment with the Bank of Russia's plans, banks are gradually replacing international payment system cards, such as Visa and Mastercard, with domestically controlled Mir cards. Given the trend towards using Mir cards, T-Bank has indicated that it does not see the need for forced reissuance of cards with extended validity, as people are voluntarily switching to domestic alternatives within the Russian banking-and-insurance industry.
