Russian Credit/Debit Card Network?

Discussion in 'The Russian Economy' started by NukeCEO, Apr 8, 2014.

  1. NukeCEO

    NukeCEO Citizen

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    http://rbth.com/business/2014/03/28...alternative_to_visa_and_mastercard_35469.html

    I've seen some articles about the potential for a Russian credit/debit card network, like Visa or MasterCard.

    While I can certainly see why it should be done, I believe that such a system would have to be competitive in order to really be effective.

    How would such a system be able to compete in such a deeply established field? How could this new provider innovate to expand internationally?

    Perhaps I'm thinking about this wrong, but I just think it should be a commercially viable product without the need for any influence from the Russian government.
  2. Carlo

    Carlo Ship Secretary (11th class)

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    I agree it must be commercially viable, but it doesn't need to be global by now - if it is accepted withing the Eurasec first, it will be a good start. And if the Russians convince the Chinese to participate, then it surely will have a future.
  3. NukeCEO

    NukeCEO Citizen

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    Yes, but to be global in the future, it would need a way to be competitive in the traditional areas of JCB, Visa, and MasterCard.
  4. José Moreira

    José Moreira High Commissar Staff Member

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    The new law was passed today:

    http://www.rapsinews.com/legislation_news/20140429/271233770.html
  5. PCO VolgaTrader

    PCO VolgaTrader Collegiate Registrar (14th class)

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    The Russian government has two options. A very expensive national system protected from price competition by barriers against foreigners; for example; the deposits already demanded from Visa and Mastercard. This will be a cost imposed on the Russian economy in general. The second option is direct subsidy. This might allow the platform to operated outside Russia in countries with lax competition rules such as China or India but like abandoning the dollar, whose card gets chosen? Again there is a cost this time directly on taxes. Mastercard and Visa are coalitions of once seperate card systems. The UK had Barclaycard and Access for example. The logic of the market demands a unified system. Amex, a charge card, had a small international unified system owned by itself but its charges became too high to keep it mainstream. Russia could do a deal with Amex to get technical and administrative support quite quickly once Ukraine subsides.

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