Three of the world’s leading payment system providers – credit/debit card companies Visa and Mastercard, and online payments leader PayPal – put out statements Saturday that they will be suspending all operations in Russia.
Visa and Mastercard cards issued is Russia will no longer work outside the country, and any cards issued by financial institutions outside of Russia will no longer work within the Russian Federation.
Similarly, PayPal will no longer allow for transfers to and from Russia based accounts. PayPal’s suspension in Russia also applies to its money transfer tool, Xoom.
While Russia has over the past number of years developed its own domestic payments system, as well as a bank transfer system similar to SWIFT, moving money in and out of Russia will be increasingly difficult. Similarly, any Russians abroad without bank accounts outside the country will be basically unable to pay for anything, or withdraw cash in local currency.
Each of Visa (NYSE:V), Mastercard (NYSE:MA) and PayPal (NASDAQ:PYPL) are based in the US and trade on US stock exchanges. The full statements issued by each of Visa and Mastercard follow.
Visa Suspends All Russia Operations
SAN FRANCISCO — Visa Inc. (NYSE:V) today announced it is suspending its Russia operations.
Effective immediately, Visa will work with its clients and partners within Russia to cease all Visa transactions over the coming days. Once complete, all transactions initiated with Visa cards issued in Russia will no longer work outside the country and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation.
“We are compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed,” said Al Kelly, chairman and chief executive officer of Visa Inc. “We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability demand we respond in line with our values.”
About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating payments transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.
Mastercard Statement on Suspension of Russian Operations
MARCH 5, 2022
For more than a week, the world has watched the shocking and devastating events resulting from the Russian invasion of Ukraine. Our colleagues, our customers and our partners have been affected in ways that most of us could not imagine.
We have previously shared the steps we have taken in response to these events, with the well-being and safety of our employees being our first and foremost priority. And as we have navigated and complied with our regulatory commitments, we have been in constant dialogue with our customers, partners and governments. We’ve received perspectives from our employees, in addition to people across the industry, consumers and our shareholders. We have also considered what would be most important to support the continued availability of services, if possible, to impacted people in the region.
It’s with all of this in mind – and noting the unprecedented nature of the current conflict and the uncertain economic environment – we have decided to suspend our network services in Russia.
This decision flows from our recent action to block multiple financial institutions from the Mastercard payment network, as required by regulators globally.
With this action, cards issued by Russian banks will no longer be supported by the Mastercard network. And, any Mastercard issued outside of the country will not work at Russian merchants or ATMs.
We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years. We have nearly 200 colleagues there who make this company so critical to many stakeholders. As we take these steps, we will continue to focus on their safety and well-being, including continuing to provide pay and benefits. When it is appropriate, and if it is permissible under the law, we will use their passion and creativity to work to restore operations.
In the meantime, our teams across the region and around the world will continue to enable and advance our global business, supporting our customers in other geographies where we currently do business. As they do, we will remain vigilant to ensure the safety and security of the global payments ecosystem and our network. Our Cyber & Intelligence teams will continue to work with governments and partners around the world to ensure that stability, integrity and resiliency of our systems continue to guide our operations and response to potential cyber-attacks.
These have been and will continue to be very difficult days – most of all for our employees and their families in Ukraine; for our colleagues with relatives and friends in the region; for our colleagues in Russia; and for the rest of us who are watching from afar.
As we take this step, we join with so many others in hoping for and committing to a more positive, productive and peaceful future for us all.