Russian banks could problem playing cards with China’s UnionPay as Visa, Mastercard reduce hyperlinks

FILE PHOTO – Chinese language guests stroll previous an indication for China UnionPay exterior a pawnshop in Macau, on this image taken November 20, 2013. Image taken November 20, 2013. REUTERS/Tyrone Siu/File Picture

LONDON, March 6 (Reuters) – Bank cards issued by Russian banks utilizing the Visa and Mastercard fee techniques will cease functioning abroad after March 9, Russia’s central financial institution stated on Sunday, including that some native lenders would look to make use of China’s UnionPay system as an alternative.

Russian-issued Mastercard and Visa playing cards can be accepted inside Russia till their expiry, the financial institution stated,

The abroad ban additionally applies to playing cards issued by native subsidiaries of international banks, the financial institution stated.

Its announcement got here after U.S. funds companies Visa Inc (V.N) and Mastercard Inc stated they have been suspending operations in Russia, becoming a member of the listing of firms which might be severing enterprise hyperlinks with Russia. learn extra .

The central financial institution added that many Russian banks plan to problem playing cards utilizing UnionPay, a system it stated was enabled in 180 international locations.

Whereas a number of Russian banks already use UnionPay, others together with Sberbank (SBER.MM) and Tinkoff might begin issuing playing cards co-badging Russia’s home Mir funds system with UnionPay, it added.

Hundreds of Russians, together with holidaymakers, are stranded overseas after many international locations closed off their airspace to Russian plane whereas Russia has retaliated with flight bans for a lot of international airways.

The central financial institution suggested residents at present abroad, to withdraw money earlier than the ban got here into drive learn extra .

Reporting by Sujata Rao;Enhancing by Elaine Hardcastle

Our Requirements: The Thomson Reuters Belief Ideas.