Russia plans to phase out Visa and Mastercard by 2028

Russia's National Payment Card System (NSPK), which processes all domestic transactions, has announced plans to gradually phase out Visa and Mastercard cards from circulation. This strategic move is designed to bolster the use of Russia's own payment infrastructure.

To achieve this goal, the NSPK intends to progressively lower the interbank commission rates associated with international payment systems like Visa and Mastercard. Currently, these rates average between 1.5% and 2.5% of the purchase amount, a commission received by the banks that issued the cards. This system was maintained even after Visa and Mastercard ceased operations in Russia.

However, the NSPK plans to reduce this interbank commission rate to 1% starting in early 2027. By the beginning of 2028, the rate is set to drop to 0%. This significant reduction is expected to make it financially unviable for Russian banks to continue issuing and servicing Visa and Mastercard cards, effectively pushing them out of the market in favor of domestic alternatives.