The head of Russia's National Payment Card System (NSPK) has declared that Visa and Mastercard cards are now 'useless plastic' in the country, as the cards issued by the two international networks approach their expiration dates. Dmitry Dubynin, CEO of NSPK, made the statement on Tuesday, adding that the operations of Visa and Mastercard are currently supported by the national payment system, not by the companies themselves.
A blunt assessment from the top
Dubynin didn't mince words. In an interview with a Russian business daily, he said that Visa and Mastercard cards have become 'useless plastic' for Russian users. He argued that the cards' functionality now depends entirely on the infrastructure of the national payment system, which processes transactions behind the scenes. 'They are just pieces of plastic with a logo,' he said, according to the report.
The CEO's remarks come as the cards issued by Visa and Mastercard in Russia are reaching their expiration dates. Since the two companies suspended operations in the country in March 2022, following the invasion of Ukraine, no new cards have been issued, and existing ones cannot be reissued by Russian banks.
The exit that changed everything
Visa and Mastercard exited the Russian market in March 2022, along with a wave of other Western companies. At the time, the move crippled international transactions for Russian cardholders. But the domestic payment system, Mir, which NSPK operates, took over the processing of all card transactions inside Russia. That system now handles the payments for the remaining Visa and Mastercard cards, which only work within the country.
Russian banks have been urging customers to switch to Mir cards, which are fully independent of Western payment networks. The Mir system was launched in 2015 as a response to earlier sanctions, and it now covers most domestic transactions.
What's left for Visa and Mastercard holders
For the millions of Russians still holding Visa or Mastercard plastic, the practical reality is that the cards will stop working altogether once they expire. Banks cannot issue replacements because the licenses are frozen. The only option is to apply for a new card from the Mir system.
Dubynin's blunt language appears to be a push to accelerate that transition. The NSPK chief said that the continued operation of expiring Visa and Mastercard cards is 'a temporary measure' that will end once the last card expires. He didn't specify a timeline, but industry estimates suggest that most cards will expire within the next two years.
The question left unanswered is how many of those cards remain in circulation. The Central Bank of Russia has not released a recent count, but before the 2022 exodus, Visa and Mastercard accounted for the vast majority of payment cards in the country. The countdown is now on for those holding onto the old plastic.
