Moscow Credit Bank (MCB) and DOM.RF have been exploring the rollout of UnionPay cards, the Chinese payment system, with officials from the issuing banks signaling progress on this initiative. The development has been reported by the newspaper News, citing statements from representatives of credit institutions.
In discussions framed by the Interbank Cooperation Directive, the institutions are evaluating the feasibility of issuing UnionPay-branded cards. DOM.RF has publicly indicated a plan to begin issuing UnionPay cards around 2023, with a potential joint product pairing UnionPay with Mir cards as part of the program. These plans are discussed in the context of expanding international payment options for Russian consumers and merchants.
Industry observers weigh the potential market impact. Alexey Voilukov, a vice president of the Russian Banks Association, suggested that UnionPay could secure a meaningful share of the Russian payment card market, potentially capturing 5-8 percent if Visa and MasterCard do not return to the market in the near term. He noted that currently eleven banks have the official authorization to issue UnionPay cards, with a few additional institutions undergoing the necessary payment system and regulatory approvals.
Evgeny Romanov, a leading analyst in banking ratings at Expert RA, cautions that UnionPay cards are often marketed for tourism. He points out that in many countries the card might be accepted mainly within larger retail spaces and shopping centers, and there could be limitations at smaller merchants. He also highlights that the number of banks able to work with UnionPay remains limited, and sanctions-related restrictions could cause some merchants and websites to block payments from customers located in the Russian Federation.
There is a broader context to the discussion. Earlier reporting indicated that UnionPay cards had begun appearing at certain electronics retailers as a workaround during periods when cross-border use of Visa and MasterCard faced restrictions abroad. The evolving landscape reflects broader shifts in how Russian consumers access international payment networks and how banks position themselves amid changing global sanction and compliance environments.
For travelers and shoppers, the emergence of UnionPay in Russia could offer an alternative payment pathway, potentially reducing reliance on traditional networks for international purchases. Banks and payment processors are navigating regulatory compliance, cross-border settlement considerations, and merchant acceptance to deliver a seamless experience for cardholders who travel or shop internationally.
As the dialogue continues, stakeholders emphasize the importance of clear guidance for cardholders regarding where UnionPay is accepted, potential foreign transaction fees, and any limitations at smaller merchants or in border regions. Industry experts also stress that the success of UnionPay in Russia will hinge on the willingness of merchants to adopt the network and the ability of issuers to secure favorable interchange terms. (Citation: News) (Citation: Russian Banks Association) (Citation: Expert RA)