Visa and Mastercard could return to Russia after a long absence?
Visa and Mastercard are likely to try to return to Russia after withdrawing from the market, but can they regain lost ground, or has Russia moved ahead with its own payment system?
Visa and Mastercard could return to Russia
Global payment giants Visa and Mastercard have a chance to re-enter the Russian market, according to Anatoly Aksakov, head of the State Duma Committee on Financial Markets. In an interview with Tass, Aksakov said that both companies could return to Russia to seek profits from a large market they left. However, such a return would not be easy, as Russia has already deployed and strengthened alternative payment systems. He shared:
"I believe that they will soon return to provide services, because they have lost an important market and will try to re-enter it."
Visa and Mastercard suspended operations in Russia in March 2022 following the invasion of Ukraine. The move was part of international sanctions aimed at isolating Russia from the global financial system. Since then, Russian-issued cards from Visa and Mastercard have been blocked for international transactions. This has prompted Russia to increase its use of the national payment system Mir and look for alternatives such as partnering with China's Unionpay and adopting cryptocurrency payment methods.
A comeback could be challenging
Aksakov said that while Russia has developed its own domestic payment system, Visa and Mastercard remain important for international transactions, especially with Europe and the US, where current alternatives are not yet fully available. However, he also stressed that a return to the Russian market would be difficult:
"It won't be easy for them to come back, because we are used to relying on domestic payment systems."
Since Visa and Mastercard withdrew from Russia, the country has significantly built up and strengthened its financial infrastructure. The return of the two companies will not only face regulatory hurdles but also have to compete with alternative payment methods emerging in the country.
