Russia looks to China for assistance with domestic microchip bank cards

By Nikita Chaurasia  | Date: 2022-04-07

Russia looks to China for assistance with domestic microchip bank cards

Russia is reportedly seeking out Chinese microchip manufacturers to bypass the sanctions imposed by Western countries, which has caused an uptick in demand for bank cards linked to Mir payment systems.

For the unaware, Mir payment systems are payment systems established by the Central Bank of Russia to facilitate electronic fund transfers. As a direct consequence of its invasion of Ukraine. Russia has been clipped off from the global financial system, resulting in the withdrawal of half of its forex and gold reserves amounting to USD 640 billion.

According to Oleg Tishakov, a top executive with the National Card Payment System (NSPK), Moscow is facing a significant scarcity of microchips and Asian manufacturers have suspended production due to the pandemic, and now European suppliers have ceased complying due to the sanctions levied on Russia.

He further said that they are seeking fresh suppliers, some of them from China and that the certification process is currently underway.

It is worth noting that some of Russia's largest banks have forfeited access to the SWIFT banking messaging system. Furthermore, international payment cards Visa and Mastercard have halted their servicing for Russian accounts found abroad. Mir's connection to Apple Pay was also rejected last month.

Notably, NSPK released nearly 2 million Mir cards between the end of last year and March 2022, for a combined amount outstanding on the cards of USD 116 million, according to system data.

As of now, all predominant Russian banks have called for domestic cards that are also co-branded with China's Union Pay, as an alternative to Visa and Mastercard for Russians living overseas.

Nonetheless, banks in some countries, including Vietnam, Uzbekistan, Armenia, Turkey, and Belarus, continue to accept Mir cards, which is a beacon of hope for Russian foreign nationals.

Source credit:

https://money.usnews.com/investing/news/articles/2022-04-05/russia-turns-to-china-for-microchips-for-in-demand-domestic-bank-cards

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Facebook-owner Meta to share more data on political advertisements

Facebook-owner Meta to share more data on political advertisements

By Nikita Chaurasia

Facebook-parent Meta Platforms Inc has recently announced that it would provide additional data from its public ad database regarding the targeting decisions made by publishers running social and political-issue advertising. As a part of the expan...

Massachusetts finds first 2022 monkeypox case in the United States

Massachusetts finds first 2022 monkeypox case in the United States

By Nikita Chaurasia

The Massachusetts Department of Public Health has recently reported the first case of a rare infection called monkeypox in a man who recently visited Canada. According to Boston’s public department, the identified case is no threat to the pu...

Russia denies plans of blocking YouTube & cutting off from the internet

Russia denies plans of blocking YouTube & cutting off from the internet

By Nikita Chaurasia

The Digital Development Minister of Russia has reportedly stated that the country is not planning to block Google’s video streaming platform YouTube as such a move would affect its users and will therefore be avoided.  It is worth notin...

Indian food delivery giant Swiggy to buy Dineout from Times Internet

Indian food delivery giant Swiggy to buy Dineout from Times Internet

By Nikita Chaurasia

Swiggy, an Indian food delivery giant, has recently announced an agreement with Times Internet to buy Dineout, a dining and restaurant technology platform. Swiggy will use the acquisition to enter the dining out (non-delivery) market, where it will c...

Grocery delivery platform Instacart files for U.S. stock market debut

Grocery delivery platform Instacart files for U.S. stock market debut

By Nikita Chaurasia

Instacart, a grocery delivery service, has announced that it has submitted a provisional registration statement with the Securities and Exchange Commission (SEC), clearing the way for the company to list its shares on the U.S. stock exchange. The ...