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Russia to build national payment system after Japanese, Chinese models

Politics Materials 31 May 2014 00:20 (UTC +04:00)
Russian President Vladimir Putin said Friday that Russia is going to create its national payment system (NPS) based on the experience of the Japan Credit Bureau and China's UnionPay.
Russia to build national payment system after Japanese, Chinese models

Russian President Vladimir Putin said Friday that Russia is going to create its national payment system (NPS) based on the experience of the Japan Credit Bureau and China's UnionPay.

"We must bear in mind that in future it (the NPS) will sign corresponding agreements with its foreign partners, so it could gradually move to the international market," the Itar-Tass news agency quoted Putin as saying.

He told head of Russia's VTB bank Andrei Kostin that the prospective Russian NPS should learn from national payment systems which already work in Japan and China.

Kostin informed the president that 300 Russian banks have currently been united into a single electronic payment processing system.

"This could be a prototype of the NPS," Kostin said.

The Russian financial system ought to expand operations in currencies other than the U.S. dollar, first of all in rubles and Chinese yuan, Kostin added.

Putin said in March that Russia would create its NPS to secure smooth operations of local banks, in an apparent move to deter disruptions from such Western systems as Visa and MasterCard, which have suspended processing payments by cardholders at Russian banks targeted by the United States under sanctions over Ukraine.

As of January 2014, Russia's banking system comprised of some 900 financial organizations with some 200 million banking cards circulating in the country, 95 percent of them being served by foreign payment systems.

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