Visa in Russia

Main article: Visa

Performance indicators

2023: Losses - 20.8 million rubles

The net loss of the Russian representative office of Visa at the end of 2023 amounted to 20.8 million rubles, which is several times less than the loss a year ago of 120.6 million rubles. Such data are given in the reporting under RAS, which LLC "Visa" disclosed in April 2024.

The company's other revenues at the end of 2023 decreased 2.5 times compared to 2022 and amounted to 341 million rubles. In 2022, they were measured at 858.8 million rubles. Other expenses decreased in 2023 to 175.7 million rubles from 1.1 billion rubles a year earlier.

𝓲

Unsplash

Labor costs at the end of 2023 decreased by more than three times - to 51.4 million rubles. At the same time, income from consulting services increased almost 4 times, to 22 million rubles.

Most of the income and expenses fall on exchange rate differences in the translation of assets and liabilities expressed and payable in foreign currency, specified in the statements, excerpts from which are quoted by Interfax.

The provision of clearing and encryption services within the payment system was previously the main type of Visa work in Russia, but after the start of the Russian military special operation in Ukraine, the company suspended this activity, which called into question the further work of the Russian legal entity of the payment system. The accounting statements of Viz say that by the end of 2023, the company's management has no "plans for future actions to resume operating activities." The intention to close the company is not reported.

An independent expert on the payment card market Dmitry Vishnyakov, in a conversation with Kommersant in April 2024, noted that it is "too expensive to liquidate a legal entity in terms of resources and risks associated with mandatory inspections of regulators." For many foreign companies, it is easier to leave a legal entity in hibernation mode, the expert said.^[1]

2022: Loss of 120.6 million rubles

The Russian subsidiary Visa recorded a net loss of 120.6 million rubles at the end of 2022, while a year earlier the company received a net profit of 894.4 million rubles. The company's revenue during this time decreased 3.6 times - from 21.6 billion to 5.9 billion rubles. Such data are contained in the financial statements, which LLC "Visa" disclosed in early May 2023.

According to Interfax, citing materials from the Russian division of Visa, in 2022, profit from the company's sales decreased by 3.8 times, to 310.8 million rubles compared to 1.2 billion rubles in 2021. Other expenses increased 2.5 times, to 1.1 billion rubles. against 432 million rubles in 2021. The majority were expenses related to negative exchange differences in the recalculation of assets and liabilities expressed in foreign currency - 860 million rubles (357 million rubles in 2021), as well as compensation for early termination of lease agreements - 101 million rubles.

LLC "Visa" recorded a net loss of 120.6 million rubles at the end of 2022

Other income in 2022 increased more than 2 times, to 859 million rubles against 394 million rubles in 2021. The main part was brought by positive exchange rate differences in the recalculation of assets and liabilities expressed in foreign currency - 843.7 million rubles (371.5 million rubles in 2021).

Accounts payable decreased to 150.6 million rubles against 2.6 billion rubles in 2021. Accounts receivable of LLC "Visa" in 2022 decreased to 42.1 million rubles against 2.6 billion rubles a year earlier.

It follows from the reporting of Viz LLC that after the company was excluded from the register of payment systems operators in March 2022, it continued to provide consulting services on commercial activities, as well as marketing and technical support services under an agreement with Visa International Service Association. However, this agreement was terminated in October 2022.

As a result, the main activities of the company were terminated during 2022 for an indefinite period, - says the documents "Visas."[2]

History

2022

The ability to issue an international Visa Gold card in the Russian office of Zepter

On July 19, 2022, it became known that Zepter Bank, in cooperation with Zepter International Russia, offers the opportunity to issue an international Visa Gold card without leaving the country at the nearest Russian office of Zepter. Read more here.

Loss of $60 million in Q1 due to work stoppage in Russia

The Visa payment system, which stopped working in Russia in March, announced a loss of $60 million due to the situation in Ukraine, according to the Visa report for the second quarter of fiscal 2022.

"During the three and six months ended March 31, 2022 , we recorded a loss in the form of general and administrative expenses of $35 million as a result of the deconsolidation of our Russian subsidiary ," the report said.

Visa spent $25 million to support staff in Russia and Ukraine.

Suspension of activities in Russia

Visa and MasterCard announced the suspension of activities in Russia. This became known on March 6, 2022.

If maps of these systems were released in Russia, they will continue to work in the country. But they will stop in foreign online stores, Apple Pay and Google Pay.

The information that all payments are being made was confirmed by Ozon, AliExpress and Yandex.Market.

Visa and Mastercard cards issued by foreign banks will not work domestically. Customer funds in accounts tied to Visa and Mastercard cards of Russian banks are fully preserved and available, the Central Bank explained.

Some banks have decided to extend the validity of all Visa and Mastercard cards. For example, Alfa-Bank extended it until the end of 2028, Sovcombank did the same, MKB - until the end of 2030. There is no need to reissue cards. Gazprombank announced that its cards will operate indefinitely.

Abroad, these cards will not work - including in countries where cards work payment system , World"" specified in the National Payment Card System (). NATIONAL PAYMENT CARD SYSTEM

According to the NSPK, banks will automatically issue a card of the Russian Mir system in return.

Alfa-Bank said it will continue to issue Visa and Mastercard cards - they will work in the country, and "when international payment systems return to the country, cards will automatically earn around the world."

The Central Bank proposes to pay in cash with foreign currency or cards "Mir" in the countries where they are accepted. At the beginning of March 2022, these are:,, Turkey,, Vietnam,, Armenia, Belarus Kazakhstan Kyrgyzstan South Tajikistan Ossetia and Abkhazia. Some banks offer to issue virtual cards "Mir." The Russian payment system also has its own Mir Pay service, but it is only available on Android.

In foreign online stores, it will be possible to pay only if they support Mir, the Central Bank said. For example, Netflix accepts it.

In addition to Visa and Mastercard, Russian banks also issue both cards of other international systems - for example, the Japanese JCB and the Chinese UnionPay cobaging cards (UnionPay/Mir, JCB/Mir). They can also be paid abroad and in foreign online stores and services. The exception is Maestro/" Mir "cards, as Maestro is one of Mastercard's debit cards.

But UnionPay and JCB aren't all releasing. The possibility of issuing a holding card "Mir "/UnionPay was reported by", Sber"", "Tinkoff MKB," Alfa-Bank. " The terms of the bank do not specify, as of March 6, 2022, such cards^[3]issued^[4].

2021

Enter 3D Secure Fees

International payment systems Visa and MasterCard will make the 3D Secure transaction confirmation service paid for banks. Read more here.

Raising fees

In September 2021, Visa announced that from February 2022 it would increase commissions for payment of goods in supermarkets by 30% - the commission for accepting cards will increase from 1 to 1.3%. Large stores of furniture, household appliances and courier services will also lose the preferential tariff - now the interconnection for them is set at 1-1.65%, later it will depend on the category of the card that was paid for, and will vary from 1.5 to 2.3%.

Visa said that the issuing bank receives an interchange commission and sends it to the development of the payment infrastructure. "This tool allowed the payment Russia market to become one of the most innovative in the world as soon as possible," the company summed up.

2020

80 million cards issued in Russia

Payment card issue dynamics in Russia

Sberbank and Visa create a data laboratory in which they will study the behavior of customers

On September 30, 2020, SberBank told TAdviser that together with Visa they are launching a Data Lab in Russia, which will study changes in customer behavior based on impersonal data and develop personalized offers for all users of card products using artificial intelligence and machine learning technologies. Read more here.

Visa introduces a single exchange rate in Russia at the time of payment

On August 26, 2020, it became known about Visa's decision to change the rules for converting currencies with ruble bank cards. The company will use a single exchange rate at the time of payment.

As told to Izvestia in Visa, the rate will be fixed on the date of purchase, and not on the day of settlements of the payment system and the bank, as it was before. This will protect customers from a sharp jump in the dollar or euro. The innovation will enter into force in April 2021.

Visa will change the rules for converting currencies in April 2021

It is designed to improve the consumer experience of cardholders and increase the level of customer confidence when paying for purchases in foreign currencies, Visa explained. They also added that this innovation will not entail the collection of any fees or commissions.

Visa will provide issuers and acquirers with reporting and account reconciliation tools to enable transaction identification. Additional technical information and specifications will be provided in the letter, which is expected to be sent out in October 2020. The bank that issued the card is obliged to notify customers about the conversion tariffs, Visa emphasized.

By August 26, currency conversion on ruble cards takes place at the rate of the payment system on the date of clearing the transaction (settlement between banks). Thus, the final purchase amount is written off a few days later, taking into account the change in the exchange rate.

The publication says that earlier the payment system MasterCard changed the rules for converting currencies, but this has not yet affected cardholders. The Russian payment system "" has World not yet discussed changes in the conversion procedure.

Experts interviewed by the newspaper believe that changes in the conversion to Visa and MastarCard will preserve the level of foreign exchange transactions that Russians began to abandon due to the volatility of the foreign exchange market.^[5]

Visa allowed Russians to withdraw cash at the cash desks of pharmacies and gas stations

On February 18, 2020, it became known about the expansion of the Visa pilot project to withdraw cash at cash desks in Russia. If earlier such a function was available only in grocery stores, now the company has decided to extend it to pharmacies and gas stations (gas stations).

You can use the service when paying with a card or smartphone, when it is enough to confirm the operation with a fingerprint or password code.

Russians will be able to withdraw cash in cafes, pharmacies and hotels

The service for withdrawing cash at outlets with Visa cards in different countries was previously launched in other countries, including the USA, Great Britain, Slovakia, Poland, the Czech Republic and Mexico.

According to Izvestia, they also intend to launch a cash withdrawal service at cash desks at catering points and gas stations banks "Ak Bars". Zenit Ak Bars plans to launch the option as an experiment in the second quarter of 2020. According to the head of the department for the development of social projects and cash solutions for partners Alexei Bakhaev, when paying for the order, it will be possible to receive an amount of no more than 5 thousand. The rubles card will be debited for both the order and the cash issued. This is expected to allow visitors to leave tips as well.

 VBanke of Russia believes that the function of withdrawing cash in stores is especially relevant for remote, rural and sparsely populated points.

By mid-February 2020, Sberbank equipped 3 thousand stores throughout the country: in some of them you can not only withdraw cash, but also pay for housing and communal services. In the future, it will be possible to get other banking services at the cash desks - to issue a new card or insurance, as well as get a loan.

The payment system Mastercard reported that they are working on expanding the service of withdrawing cash at the cash desks of trade and service enterprises, plans to connect hotels and restaurants to this.^[6]

2019

Partnership with APIBank to develop the open banking ecosystem in Russia

On October 11, 2019, APIBank, an open banking platform, signed an international payment system Visa memorandum of strategic partnership. APIBank will become a technology partner of Visa and help fintechs who work with the payment system integrate with. banks The platform will provide to startups quick access API to banking services: opening accounts, issuing branded cards, settlement and cash services, trading, KYC and to acquiring other products. More. here

Access to Kontur.Vetophor for Visa business card holders

From October 1, 2019, VisaBusiness, VisaPlatinumBusiness, VisaCorporate and VisaPurchasing card holders can check counterparties for free in the Contour service. Traffic light from SKB Kontur. This will avoid cooperation with one-day firms and unwanted payments. Read more here.

Berner Mikhail - the new head of the Visa representative office

On September 17, 2019, Visa announced the appointment of Mikhail Berner as the new CEO of the Russian representative office of the company. In this post, he will replace Ekaterina Petelina, who moves to the position of chief operating officer in the North America region (USA and Canada) and moves to San Francisco. Petelina led the Russian office of the international payment system for more than three years. Read more here.

2018: Money transfer service launched by phone number

In December 2018, Visa launched a service in Russia for transferring money from card to card by mobile phone number. Four banks participate in this platform: VTB, Russian Standard, Tinkoff and Home Credit. This was reported in a press release from Visa.^[7] TAdviser journalist made sure that the service is already working for VTB in the mobile application.

Visa launched a money transfer service in Russia by phone number

According to Visa, Russia leads the world in terms of the amount and number of remittances from card to card. According to the calculations of the Central Bank of the Russian Federation, for nine months of 2018, Russians made card transfers totaling 19.2 trillion rubles. On average, for each Visa card in Russia, there are from two to five transactions per month to transfer money, said Ekaterina Petelina, CEO of Visa in Russia.

The modern user has a whole set of payment form factors and ceases to think in the categories of "card details." The phone number has become a familiar way of identification for many, "she stressed.

According to Vedomosti, not only Visa cards, but also other payment systems can be linked to the new service. The same information was confirmed by the publication and the head of the department of debit cards and loyalty programs "Home Credit" Georgy Sorokin.

Customers will not need to think about the card of which international payment system for those who need to make a transfer, they will only need to know the phone number , "he explained.

Earlier in 2018, money transfers by phone number, email address and profile of social networks "VKontakte" and "Odnoklassniki" presented the MasterCard payment system. Raiffeisen Bank was the first to connect to the platform - holders of its cards can make transfers to cards of Russian banks by phone number of the recipient of funds, as well as receive transfers from cards of other banks by phone number.

In January 2019, it is expected to launch a fast payment system from the Central Bank, which will allow transferring money not only to card accounts, but also to any other.^[8]

2014: Visa puts forward conditions for work in Russia by CBR

The international payment system Visa has listed the conditions under which it agrees to continue working in Russia. In particular, in his letter to the Bank of Russia in November 2014, the head of the Russian office, Andrew Torre, asks not to influence Visa's tariff policy when transferring payment traffic to NSPK and to leave the opportunity to use their native capacities (Based on RBC materials).

In a letter to Deputy Chairman of the Central Bank Olga Skorobogatova and General Director of the National Payment Card System OJSC Vladimir Komlev, Andrew Torra writes that he is sympathetic to the Central Bank's desire to establish cooperation with Visa within the framework of the law, according to which international payment systems must process transactions within Russia through the NSPK.

But at the same time, Torre offers a number of conditions for this cooperation and the continuation of his work in Russia.

In particular, Visa wants to retain the right to set tariffs and other types of fees for various services that the company provides in Russia. Now, according to the law, the NSPK must establish its tariff policy, it does not affect decisions on payment systems tariffs, but they must notify it every time prices for their services increase every 120 days. Visa also wants NSPK to provide it with services on the same terms as other payment systems. At the same time, Torre asks that Visa have the right to use its own operating and clearing center and not pay a fee if the NSPK does not guarantee the system uninterrupted and reliable service.

According to the law, Visa must transfer the processing of payment traffic to the NSPK by March 31, 2015 or pay a warranty fee. In the letter, Visa declares that it does not intend to place signs or logos of other payment systems on its cards, that is, to carry out co-badging. Now the law provides that the cards of nationally significant systems should have a graphic image of the ruble, and the NSPK has the right to issue co-badging cards with other payment systems.

It is reported that the Bank of Russia promptly responded to the appeal of the Visa payment system, explaining certain legislative norms. In a response letter, the regulator does not respond to specific proposals of the payment system, noting only that Visa does not prevent anything from continuing its activities as a payment system operator and at the same time being a member of the NSPK. The Central Bank proposes to discuss further issues within the framework of specially created working groups.

2012: Russian cashless payments market is the fastest growing in the world

In 2012, Russia was the fastest growing market in the global business for Visa, Senior Head of Emerging Markets Ashwin Raj told TAdviser on February 25, 2013.

"Residents of Russia are more and more actively using bank cards and the possibilities of electronic payments to make transactions," he notes.

The company chose not to illustrate its business in Russia with accurate figures, noting only that the growth of non-cash payments in the country was even higher than in India and Brazil, where it is also increasing at a significant rate. The country in which the penetration rate of bank card payments in 2012 was closest to the Russian one, the Visa representative calls Turkey. As in Russia, there is still a significant number of people who are not covered by banking services, he notes.

The project of a universal electronic card (UEC), within the framework of which, in accordance with which it is planned in 2014 for all Russian citizens who have reached the age of 14, to issue plastic cards for receiving public services with the application of the Sberbank payment system PRO100, may spur an increase in the share of non-cash payments in the country, a company representative believes.

According to him, a similar project is already operating in India, where citizens are issued ID-cards that allow them to receive public services and make payments. Visa acts as a partner of the state on it. "I believe that this is a key program that will help increase the level of electronification when accessing public and financial services among citizens. This is an evolutionary factor in the development of the economy, "says Raj about the Indian project.

Among the key major projects for which Visa is currently working in Russia, the company calls cooperation in providing contactless payment infrastructure using NFC technology during the Sochi Olympics in 2014. For this, Visa will provide the payWave payment application for mobile devices and terminals and the necessary specifications for their work, as well as ensure the processing of transactions made with their help.

Other major projects in Russia include cooperation with VimpelCom (operating under the Beeline brand) to provide contactless payments for the operator's subscribers, as well as cooperation with Qiwi on electronic payments. According to Raj, his company would like to work with other major operators in Russia - MTS and Megafon. On this occasion, the company is negotiating with them, adds a Visa representative.

Visa associates the main plans for work in Russia for the near future with the development of opportunities for making payments using mobile devices, including the development of card payments with their help in small points of sale, says Ashwin Raj.

Notes