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Union Pay continues expansion in Russia, closes deal with MDM Bank

Wednesday 20 August 2014 13:50 CET | News

Russian MDM Bank has partnered China’s Union Pay national payment system to issue Union Pay-based cards, standartnews.com reports, citing the Russian news agency Itar Tass.

Moreover, other Russian banks, including Alfa Bank, Gazprombank and Bank of Moscow are preparing to start implementing the Chinese Payment system and issuing Union Pay cards as well.

MDM bank has also informed that, in the aftermath of the technical implementation, Union Pay customers will be able withdraw cash at MDM Banks ATMs. Moreover, the same customers will be able to pay in stores and malls which are serviced by the bank.

Fan Zhiguang, Union Pays representative in Russia, has recently predicted that the number of the systems cards in Russia will reach 2 million until 2016.

On the other hand, Union Pay and the Japanese cards operator JCB will resume activities in co-branding with the operator of the Russian national payment system.

The Russian payment system was ordered by President Vladimir Putin after Visa and MasterCard stopped processing cards of some countrys banks due to sanctions imposed on the country by the US. Hence, the government has been looking for an alternative payment system: Union Pay.

Additionally, Prime Minister Dmitry Medvedev has informed in a decree cited by the source that the Russian government will also prepare proposals to finance projects for the BRICS New Development Bank (NDB) and expand Russias cooperation with other countries in innovation and technology by November 2014.

The NDB, with the planned authorised capital of EUR 100 billion, will finance infrastructure projects in the territory of BRICS member countries.

The Russian government is to prepare initiatives to support Russian innovation exporters by 1 October 2014.

Check out our Cross-border Ecommerce Research section here for more info on specific ecommerce facts and figures, preferred payment methods, risk and fraud, as well as ecommerce legislation and regulation in China.


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Keywords: China, Russia, Union Pay, MDM Bank, payments system, online payments, national payments system, cards, online transfers, money transfers
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