China’s UnionPay cards are expected to be issued by leading Russian banks Credit Bank of Moscow and DOM.RF from early 2023, Russia Briefing reported.
The new bank cards, from one of China’s major card schemes, will enable Russians to conduct business abroad, Russia Briefing said, and will be co-branded by UnionPay and Mir, Russia’s Central Bank owned electronic payment system.
UnionPay cards were primarily intended for Chinese tourism, said Expert RA analyst Evgeny Romanov in a Banks report, but Russians can also use the cards in other countries, although demand will depend on the cost.
The big banks are Russia’s latest to adopt the Shanghai-based financial service, after the war in Ukraine prompted Western firms Visa and MasterCard to suspend operations in the country.
China Moves Into Russian Banking
Eleven other major Russian banks, including Gazprombank, RSHB, Bank Saint Petersburg and Zenit, have already made the switch to China’s Union Pay, Russia Briefing said, with the likes of Absolut Bank, Rosbank, Ak Bars and Home Credit expressing plans to do the same.
However, business with Russian banks will remain controlled and limited, Romanov noted, due to China’s fear of sanctions by the US.
Union Pay could gain a 5-8% share of Russia’s card payment economy, Russia’s Novikombank told Russia Briefing, as long as Visa and MasterCard do not lift their bans in the near future.
- By Alfie Habershon
Read more:
Russian Banks Seek Tie-Up With China’s UnionPay After Card Ban
China’s UnionPay Wary of Deals With Russian Banks – RBC
China, Russia Central Bank Officials Meet Over Payments System
