GORKI (Moscow Region), June 18 (RIA Novosti) – Russia’s national card payment system is not being created to counteract foreign counterparts, but as a reasonable alternative to them, Russian Prime Minister Dmitry Medvedev said Wednesday.
“The national card payment system should give consumers more opportunities to choose, and in fact, most importantly, the idea is not to struggle against foreign systems, this is wrong and in fact a violation of competitive principles. This is a kind of a reasonable alternative to foreign systems, including the famous and most popular ones like Visa and MasterCard,” Medvedev said at a meeting on establishing the national card payment system.
Russian President Vladimir Putin signed into law a bill to create a national card payment processing system in early May. Plans to establish the system were initiated in response to Ukraine-related sanctions that saw several Russian banks denied service by global powerhouses Visa and MasterCard, troubling the general public and raising concern over the security of the country’s financial system.
In late March, following Russia’s reunification with Crimea, Visa and MasterCard halted client operations for cardholders at Bank Rossiya, SMP Bank, as well as at their subsidiaries Sobinbank and Investkapitalbank, with no prior notice, causing a serious drop in the banks’ consumer confidence.
Full article: Russia’s National Card Payment System is Alternative to Western Counterparts – Medvedev (RIA Novosti)