Russia has created a homemade rival to Visa and Mastercard. Its central bank set up a payments system with its own card, named Mir (“world”, or “peace”, in Russian)
Yet it was not until the annexation of Crimea in 2014 that these indignities came to be seen as acute vulnerabilities. America and Europe imposed sanctions that were designed to hurt misbehaving Russian banks and President Vladimir Putin’s cronies. Visa and Mastercard briefly blocked cards issued in Crimea or by blacklisted banks. American senators and the European Parliament called for Russia to be cut off from.
Central to that plan is a homemade rival to Visa and Mastercard. The central bank set up a payments system with its own card, named Mir . Legislators passed a law forcing Visa and Mastercard, in effect, to have their payments processed at a clearing-house owned by the Russian payments system. In 2019 themade 11.9bn roubles , or three-quarters of its revenue, from charging clearing fees to foreign card brands. These proceeds have allowed it to lower Mir’s commission rate to 0.
Pensioners and civil servants are required to receive their incomes on a Mir card. Businesses must accept payments from it. Seven years after its launch Mir accounts for 30% of cards issued in Russia . Last month it had about 100m cards in circulation. On July 20th Mir announced that it was connected to Apple Pay—a big deal, given that mobile phones make up 60% of contactless payments in Russia.
Mir wants even more. It bombards Russians with promises of special treatment if they switch cards. A ride on the St Petersburg metro is roughly half price when the commuter taps a Mir card at the gates. A “cashback” scheme offers a 20% discount on any holiday inside Russia booked with Mir. On August 17th Wildberries, Russia’s answer to Amazon, began charging Visa and Mastercard users an extra fee of 2%.
Outside of Russia, though, Mir does not fulfil its worldly ambitions. Most banks abroad do not accept it . Efforts to produce a version of the card co-badged with Mastercard’s Maestro brand, which would see it accepted more widely, have not solved the problem. Similar obstacles abound for another central-bank creation,
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
10 Amazing Results of a Life With PurposeCultivating a sense of purpose is key to health and happiness as people age. Here's how to do it, explains MegSelig1
Leer más »
Opinion | Replace Joe Biden’s Foreign Policy NowFrom WSJopinion: The past two weeks make clear that the responsibility of providing long-term protection for the U.S. in an unfriendly world has defaulted to Republicans. It’s a dirty job, but someone has to do it, writes DanHenninger
Leer más »
Las Vegas Breaks Record In July With $794 Million In Gambling RevenueLast month marked Sin City's best financial performance in eight years.
Leer más »
Women Turn To Crypto For Funding And Financial Freedom When Other Systems Are BlockedWomen face endemic financial barriers to economic freedom, entrepreneurial pursuits, independence, and security.
Leer más »
University deferral deals: Current students brand them unfairBristol, Leeds and Exeter unis have offered financial incentives to encourage people to defer.
Leer más »