Russian banks that have been cut off from global payments networks are turning to China’s state-owned UnionPay system as the country tries to sidestep boycotts by Western businesses for its invasion of Ukraine, as per Bloomberg.
On March 6th , Visa Inc. and Mastercard Inc. said that they are suspending their Russian operations, making it difficult for Russians to buy goods from abroad. The moves by the two companies go beyond sanctions issued against many Russian banks.
Visa and Mastercards issued by Russian banks will work inside the country until they expire, according to the Russian central bank. But those cards will stop working on foreign websites and transactions abroad from March 10, 2022, per Visa and Mastercard.
Visa and Mastercard cards issued outside of Russia will also stop working within the country.
UnionPay was launched in 2002 as the Chinese equivalent of Mastercard and Visa. It operates under the approval of the People's Bank of China, the nation’s central bank, and it is the only interbank network linking all automatic teller machines within China.
UnionPay cards are used in 180 countries, including the U.S. and Taiwan.
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