Tuesday, April 25, 2017

In followup to ESFS payment system to bypass SWIFT, Russia ready to open Mir payment card for international use

With both Russia and China having recently completed their SWIFT alternative payment systems that will allow them or any nation to bypass the dollar and any potential U.S. sanctions, on April 25 Russia is pushing its next payment program forward by internationalizing the Mir payment card through a joint deal with Mastercard.

In fact, Russia is now joining China who has a similar credit/debit card system known as Union Pay, and where the Chinese version is already the singular biggest payment card in the world.

Russia's National Payment Card System (NSPK) and Mastercard are holding negotiations on co-badged cards, to be called Mir-Mastercard, Russian Vedomosti newspaper reported Tuesday, citing bank officials. 
According to the media outlet, NSPK and Mastercard will produce 40 million co-badged cards, if the outcome of negotiations is positive. In Russia, the card will operate as Mir, while abroad it will function as a card of the international payment system. 
The newspaper added that the Russian Central Bank and NSPK had been holding negotiations with Visa since the end of the previous year. The NSPK reportedly also signed agreements on co-badged cards with Japanese JCB, American Express and Union Pay. 
The Mir national payment system started operating in Russia on April 1, 2015. The system was created after Visa and MasterCard stopped service to some credit cards issued by Russian banks due to US sanctions imposed on Russia. Mir, operated by NSPK, seeks to ensure the sovereignty of the national payment industry and secure the processing of domestic transactions using Russian bank cards. - Sputnik News
As Russia and China continue to expand their creation of alternative financial systems to not only compete with, but even surpass long-standing Western models, the likelihood of more and more countries and consumers switching to dollar alternatives becomes a very real probability, especially since China intends to make use of their systems along their Silk Road initiative, and Russia likewise in their bid to control the global energy markets.

0 comments:

Post a Comment