Russia’s plan to build its own card payment and processing system has received backing from the country’s President Vladimir Putin, after Visa and MasterCard removed their services from the country’s banks before reinstating again.
Putin said it is really too bad that certain companies have decided on…restrictions.
"I think it will simply lead to a loss of certain segments of the market for them, and a rather profitable market at that," Putin added.
Last week, Visa and MasterCard withdrew to provide card services to four Russian banks, in response to the US trade sanctions against Russia.
The affected banks were Bank Rossiya, Sobinbank, SMP Bank and Investcapitalbank.
The new payment system, which will be called Universal Electronic Card (UEC) PRO 100, is not yet ready for retail purchases and will be initially used in public sector and some commercial services.
Speaking during an interview on Russian TV channel Rossiya 24, Russia Finance Minister Anton Siluanov was quoted by Reuters as saying that Visa and MasterCard’s suspension of services made them start thinking very seriously how they can secure themselves against this kind of cases.
"Nevertheless, we believe that there is no serious reason to say that we should abandon the existing systems, especially Visa and Mastercard, but in parallel we will begin to focus more on developing our own settlement system," Siluanov added.