Russia's SMP Bank says that Visa and MasterCard have stopped processing transactions for its clients after the US imposed sanctions on its major shareholders.
I wonder how long it will be before a new Russian Cardscheme is launched...
It will take them multiple years (+10) to build up a new scheme. In Russia they do not need any scheme - 90% of usage is atm withdrawals and this can be managed domestically. But to use Russian cards abroad - much more difficult to achieve without Visa and
MasterCard. And if Russia ends up in a USD clearing blocade - look at Iran - did they build a new card scheme? Nope - but they do have atm:s for domestic use in Iran. So prepare for cash paying oligarks in London.
Yes indeed -CUP is the dominant scheme in China. This since there is the legal provision that only CUP cards can be connected to bank accounts in Renminbi. So to hold a Visa or MasterCard you need a bank account in for instance USD, which is not allowed
for all chinese... thus the dominance in a short while. The flipside of that is than these CUP cards cannot be used widely abroad, not even in atm:s. Should Russia need to downgrade existing Visa and MasterCard cards to RUCard they will experience lack of
acceptance, especially if they are in a USD clearing blocade... How will "RUCard" settle with an atm owner in Thailand if they do not access USD and perhaps not Euro (like Iran). In renminbi with its makeshift currency rate?
to £60k base, £100k OTEAnywhere, UK
© Finextra Research 2014