FX.co ★ Japanese payment system plans to enter Russian market

JCB, the Japanese payment system, has started certain moves to enter the Russian market amid festering uncertainty among Russian users of Visa and MasterCard, the largest international payment systems. According to the well-informed sources, JCB has already decided in favor of Alfa-Bank which has been rumored to be JCB’s point of entry into the Russian market. Citing Vilen Timiryazev, Chief of Alfa Bank’s processing center, both parties have reached an accord in bottom lines. “We have already become a JCB member, and have had experience with it as an Aeroflot acquirer. Furthermore, according to existing agreements, we plan to carry out functions of a settlement bank for this system in Russia. If everything goes as planned, the primary potential target audience for JCB cards will be those clients, who often fly to China, Japan, and South Korea, where Visa and MasterCard are not well represented,” Vilen Timiryazev spoke in the interview. Meanwhile, Russia’s government enacted the new law on the national payment system. The law was suggested by President Vladimir Putin after Visa and MasterCard driven by US sanctions stopped card operations of several Russian banks. Russia’s Prime Minister Dmitry Medvedev believes that such hawkish actions should not be left unpunished. “Foreign partners have barred some Russian banks from international payment systems. No doubt, they have infringed agreements with payment systems’ providers. I strongly believe that such gross infringement should not be left unpunished,” Dmitry Medvedev stated. Importantly, Japan Credit Bureau (JCB) is capable to occupy a large share on the Russian market owing to flexible tariffs including cash withdrawal as well as beneficial service conditions. “JCB must obtain a license from the central bank permitting to operate as a payment system in Russia,” Vilen Timiryazev commented on. JCB is expected to submit the necessary paperwork to the regulator in the near future.