Visa and Mastercard may attempt a comeback in Russia, but the country’s financial system has already moved on. Could they reclaim lost ground, or is it too late?
Visa and Mastercard May Be Returning to Russia
Visa and Mastercard may attempt to re-enter the Russian market, according to Anatoly Aksakov, head of the State Duma Committee on Financial Markets. Speaking to Tass, Aksakov stated that the global payment giants could seek a return due to the loss of a significant market. However, he noted that their comeback would not be straightforward, as Russia has already integrated alternative financial systems. He explained:
I believe they would soon return and offer their services, because they have lost a large market and will try to re-enter it.
The two payment giants suspended their operations in Russia in March 2022 following the country’s invasion of Ukraine. The decision was part of broader Western sanctions aimed at isolating Russia from the global financial system. As a result, Russian-issued Visa and Mastercard cards stopped working for international transactions, forcing the country to accelerate the adoption of its own payment system, Mir. The departure of Visa and Mastercard led to a significant shift in Russia’s financial landscape, with domestic banks and businesses adapting to alternative solutions, including partnerships with China’s Unionpay and cryptocurrency-based payment methods.
Aksakov noted that despite Russia’s national payment system, Visa and Mastercard are still necessary for international transactions, particularly to Europe and the U.S., as global networks remain essential for cross-border payments. However, he stressed that their return would not be smooth, stating:
Their entry into the Russian market will not be easy, because we are already used to rely on our payment system.
Since the companies exited Russia, the country has strengthened its own financial infrastructure, and their re-entry would likely face regulatory hurdles and competition from emerging payment alternatives.