Russians Getting Cash from Finnish ATMs via Chinese Cards – YLE

[beijingwalker]

Russians Getting Cash from Finnish ATMs via Chinese Cards – YLE​

August 27, 2022

Russian tourists have been using Chinese credit cards to withdraw cash from automatic teller machines in Finland since Covid border restrictions eased on July 1​

Russian tourists have been using UnionPay credit cards to make big withdrawals in Finland in recent weeks since it became easier for them to cross the border. This image shows a UnionPay sign is seen outside a pawn shop in Macau. Photo: Reuters.

The amount of money being withdrawn from automatic teller machines (ATMs) in parts of Finland has jumped in recent weeks thanks to a surge of Russian tourists, who have been crossing the border since it “reopened” on July 1 (when arrivals no longer need to have Covid vaccine documentation), to withdraw money via Chinese cards, according to a report by YLE News.

With Western credit card companies such as Visa and MasterCard refusing to issue cards to Russians since sanctions were imposed six months ago, Russian visitors have been using cards such as China’s UnionPay to get cash, the report said, adding that ATMs have to be refilled three to four times a week now, when they only needed to be refilled once a week prior to the war in Ukraine.

The manager of a local ATM company said the extra business had only added to their costs, as they are paid for the number of withdrawals not the amount of revenue withdrawn, it said.

However, there have also been benefits for some Finns – cheaper fuel, for those able to cross the border into Russia, according to a separate report by YLE, which said “the average price per litre in Finland is up to three times higher than that in Russia”.

Russians Getting Cash from Finnish ATMs via Chinese Cards - YLE

Russians have been using Chinese credit cards to withdraw cash from ATMs in Finland since the border restrictions eased on July 1

www.asiafinancial.com

 

[beijingwalker]

Another useless western sanction.

 

[jhungary]

Western Sanction are for Russian business not being able to use Euro or USD to trade. Not people can't withdraw their cash from ATM, unless Finnish ATM can withdraw 10s of millions of dollars, this is not what Sanction is for.

On the other hand, Russian tourist never had any problem using their own MIR card and withdraw money from Turkey. I would imagine they too won't have any problem using their own card in India or China or whatever country that are not imposing sanction to Russia.

Turkey bypasses payment barrier for Russians – DW – 04/28/2022

Turkey is trying to attract more Russian tourists by expanding the usage of the Russian Mir payment system in the country, as it seeks to bypass payment bottleneck created by Western sanctions.

www.dw.com

 

[beijingwalker]

China’s Union Pay Expands Russian Operations​

July 31, 2022
Posted byRussia Briefing

Two more of Russia’s largest banks, MKB and DOM.FR, have stated they are preparing to issue Union Pay cards – MKB and DOM.RF, with the facilities expected to be open from early 2023, while others are also considering the move.

Russia’s Industrial & Commercial Bank (ICB) is considering the possibility of issuing cards through the China’s Union Pay system, while DOM.RF plans to start issuing Union Pay cards that will be co-branded the existing Russian Mir card. UnionPay is a Chinese financial services corporation headquartered in Shanghai, China. It provides bank card services and a major card scheme in mainland China and is increasing its global presence.

Union Pay acts as an association for China’s banking card industry, operating under the approval of the People’s Bank of China (PBOC, China’s Central Bank). It is also an electronic funds transfer at point of sale (EFTPOS) network, and the only interbank network in China that links all the automatic teller machine (ATMs) of all banks throughout the country. UnionPay cards can be used in 180 countries and regions around the world.

In 2015, Union Pay overtook Visa and Mastercard in total value of payments made by customers and became the largest card payment processing organization (debit and credit cards combined) in the world surpassing the two. However, only 0.5% of this payment volume was outside of China.

Other Russian banks, including Absolut Bank, Rosbank, Ak Bars and Home Credit have also all expressed plans to issue cards via Union Pay. Absolut Bank is going through the process of agreeing an application for connection to Union Pay, while Ak Bars Bank also confirmed that they are actively working on the issue of launching Union Pay, but the time scale has not yet been announced.

Home Credit is assessing the demand for Union Pay cards by its customers and the possible economic effect of their launch. Demand for Union Pay cards has been assessed through Russian public opinion polls regularly conducted by Home Credit, which show that 9% of customers planned to request new cards. A final decision will be made later in the year.

Russia’s Novikombank has stated that Union Pay’s global distribution should not be overestimated, and it is not considered a total replacement for Visa and MasterCard.

However, they do feel that Union Pay can achieve a 5–8% share of the Russian payment card market should Visa and MasterCard not return in the near future. Eleven Russian banks officially issue such cards, comprising of Russian Standard, MTS Bank, Gazprombank, RSHB, Solidarity, Bank Saint Petersburg, Primsotsbank, RRDB, Primorye, Zenit, Post Bank, while numerous other banks are undergoing approval procedures with Union Pay.

Evgeny Romanov, a leading analyst for banking ratings at Expert RA, states that the demand for Union Pay cards in Russia will depend on the cost, and that the use of these cards is primarily intended for Chinese tourism. Although Russians can use Union Pay cards in other countries and in Russian shopping centres, and malls in smaller venues there may be difficulties in finding Union Pay ATMs and machines.

In addition, he said, it should be remembered that only a limited number of Russian banks can work with Union Pay, as sanctions have blocked payments by users to and from Russia. But the network is extremely well developed in China, where there should be no problems with their use.

In Russia 2022 to date, Union Pay have issues more than 85,000 cards, including those co-badged with “Mir.” Post Bank has been issuing about 10,000 Union Pay cards a month.
Post Bank have stated that from March to June 2022, their customers spent about 4 billion rubles (US$64.3 million) via Union Pay, of which over 90% was spent abroad. Typical usage was on replenishing electronic wallets, buying air tickets, clothes, business services and car parts.

The largest number of Union Pay transactions by Russian customers were made in Italy, Turkey, the United Arab Emirates, Singapore and the Netherlands . In June, the average purchase on cards abroad amounted to 15,600 rubles,(US$250) and the average ATM cash withdrawals 26,000 rubles (US$416).

China though has an eye on secondary sanctions, although is balancing this against the desire to maintain and expand the use of Union Pay cards around the world. There may be a reaction if Union pay begins to challenge Visa and MasterCard, meaning Union Pay are proceeding with some caution in developing markets.

China’s Union Pay Expands Russian Operations - Russia Briefing News

Two more of Russia’s largest banks, MKB and DOM.FR, have stated they are preparing to issue Union Pay cards – MKB and DOM.RF, with the facilities expected to be open from early 2023, while others are also considering the move. Russia’s Industrial & Commercial Bank (ICB) is considering the...

www.russia-briefing.com