In Russia, MasterCard Wants to Make a Deal, Visa May Leave

MasterCard and Visa are taking different stances on the issue of trying to remain in Russia after the US placed sanctions aiming to punish the Russian economy.

MasterCard and Visa issues 90 percent of the payment cards in Russia, and being forced to leave would put a major kink into the everyday lives of Russian consumers.

President Vladimir Putin signed off on new legislation that would force foreign card companies to pay a hefty deposit to stay in the country, though regulators have shown openness to easing or delaying these requirements.

MasterCard, in order to bypass the potential deposit requirement (Morgan Stanley estimates it to be $1 billion), is looking for a Russia-based payment-processing partner.

Visa on the other hand, has stated that the deposit (valued at around $1.9 billion) would be untenable, and force Visa to take its business out of Russia.

If forced to withdraw, neither company’s revenues would be impacted drastically, since Morgan Stanley reported in May that Russia accounted for only four percent of global revenue for either company.

Russia plans to launch a national payment network called the PRO 100 to compete with and perhaps supplant the foreign providers.

In the meantime, Deputy Finance Minister Alexei Moiseev spoke to Reuters and clarified that the law requiring deposits may be amended under certain conditions.