Showing posts with label VISA. Show all posts
Showing posts with label VISA. Show all posts

As a result of the sanctions over Ukraine, Visa and Mastercard have suspended operations in Russia.

Visa and Mastercard, two of the world's largest payment processors, have joined sanctions against Russia for its military invasion of Ukraine. American corporations have stated that they will cease operations in Russia, however Russians will be allowed to use their cards within the nation.

Visa and Mastercard, two of the world's largest card payment companies, have suspended operations in Russia as part of the worldwide response to its decision to invade Ukraine. The financial services organizations located in the United States said on Saturday that they will work with clients and partners to terminate transactions via their systems.

"All transactions begun using Visa cards issued in Russia will no longer function outside the nation, and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation," Visa said after taking the appropriate procedures.

"We feel forced to act in response to Russia's aggressive invasion of Ukraine and the inexcusable actions we have watched," said Al Kelly, CEO of Visa Inc. He also expressed remorse for the impact on Visa's Russian clients, partners, and cardholders.

Mastercard's services are also being suspended in Russia. "The world has observed the horrific and catastrophic events coming from Russia's invasion of Ukraine for more than a week," it stated in a statement. Mastercard stated that it has lately excluded a number of financial institutions from its payment network due to legal requirements, and went on to explain:

The Mastercard network will no longer accept cards issued by Russian banks. Furthermore, any Mastercard issued outside of Russia will not be accepted by Russian businesses or ATMs.

In a phone call with Ukraine's Zelensky, President Biden expresses his support for card restrictions.

In a phone chat with Ukraine's President Volodymyr Zelensky, US President Joe Biden praised Visa and Mastercard's choices. He also stressed that the White House is expanding security, humanitarian, and economic aid to Ukraine while working with the US Congress to gain extra financing, according to a press statement cited by Reuters.

According to Governor of the National Bank of Ukraine Kyrylo Shevchenko, Visa and Mastercard took action after Zelensky encouraged the two payment processors to suspend transactions of their credit and debit cards issued by Russian banks. The Ukrainian president demanded the sanctions in order to put further pressure on Moscow.

The current development comes after major payment and remittance service providers such as Paypal, Revolut, Wise, and Remitly, among others, declared a halt of operations in Russia. Since the start of the crisis, several sites have restricted Russian users' access to their services.

According to Tass, Sberbank, Russia's state-controlled and largest financial institution, the limitations would not impact the functioning of the Visa and Mastercard cards it issues in the nation. Customers will be able to use them to send money to friends and family in Russia, withdraw cash, and pay for goods at both physical and online Russian retailers.

Domestic transactions in Russia are handled via the country's own National Payment Card System (NSPK), which is decentralized and not connected to any other networks. Following the invasion of Crimea in 2014, Moscow established the System for Transfer of Financial Messages (SPFS) as an alternative to SWIFT and introduced Mir cards when Visa and Mastercard refused to work with numerous Russian institutions.

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The Crypto Fever, according to Visa's CFO, is starting to subside.

According to Vasant Prabhu, after peaking in April and May, digital asset transactions utilizing Visa have begun to fall. The company's Chief Financial Officer, Vasant Prabhu, believes that crypto-related Visa transactions are starting to decline. The top executive stated that their peak months were April and May, with a subsequent dip beginning in June.


Visa's Cryptocurrency Transactions Are Slowing Down

Visa Inc., an American international financial services firm, just released its fiscal Q3 2021 results. According to the study, the company's last three months were lucrative, owing to the fact that several leading countries began to recover from the effects of the COVID pandemic:

“Visa had another solid quarter, owing to the fact that several significant economies are well into a reopening-driven recovery. While continuing to invest in strategies that will drive future development, Visa increased net sales by 27% and non-GAAP EPS by 41%.”

However, the company's CFO noted that, after a surge in the first two months of the quarter, crypto-related Visa transactions began to decline in June. The executive feels that the tendency will counteract the firm's plans for larger cross-border expansion.

In Visa's fiscal third quarter, overseas spending reportedly increased by 47 percent. When travel transactions are removed from the equation, online cross-border financial activities climbed by 56%, up from 12% in the second quarter. It's worth mentioning that bitcoin purchases accounted for a significant portion of the earnings.

New Cryptocurrency Services from Visa

The payment technology behemoth, which recently disclosed that over $1 billion had been spent on crypto-linked Visa cards, has previously expressed its support for digital assets. For example, the company expressed interest in completely incorporating a cryptocurrency payment system into its present infrastructure back in April. Bitcoin and other virtual currencies have even been dubbed "digital gold" by Visa officials.

The company approved the distribution of a physical debit card a few weeks ago, allowing Australian customers to spend bitcoins in local retailers and leisure places. Customers will be able to make direct purchases using cryptocurrencies rather than having to convert them into fiat money first.

CryptoSpend, the Australian app that will manufacture the card, has stated that the product will be available in September of this year. Richard Voice, one of the company's co-founders, said:

“Our clientele range in age from 18-year-old students to grandmothers in their 70s. [This] highlights the growing desire among people of all ages to utilize cryptocurrency as a daily currency.”

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